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2024 (2) TMI 340 - HC - Income TaxValidity of assessment passed u/s 153A pursuant to search and seizure - Assessment of completed assessment which was not abated - as argued no assessment proceedings were pending as on the date of initiation of proceedings u/s 153A - HELD THAT:- As the assessment referred to in Section 153A enables the AO to proceed for assessment, when any such assessment for the previous six years is pending, treating the proceedings to have abated. In so proceeding with the assessment, AO would be entitled to reckon both disclosed and undisclosed income of the assessee. Insofar as completed assessment, they do not abate and for the purpose of re-assessing, there should be some incriminating material disclosed in the search, which alone can lead to reopening of the proceedings on the basis of the seized material, which has some relevance or nexus to the allegation of undisclosed income. The assessee’s assessment for the relevant year stood completed as on 06.06.2003 long before the search and consequent proceeding initiated u/s 153A and there is no question arising of the relevant assessment to abate under the second proviso to Section 153A. Tribunal was perfectly within the statutory framework, in making a remand directing the AO to carry out re-assessment of the assessment year 2002-03, which stood completed as on the date of initiation of Section 153A proceedings, if some incriminating material seized during the search is available. We bow to the proposition as declared by KABUL CHAWLA [2015 (9) TMI 80 - DELHI HIGH COURT] and affirmed by the Hon’ble Supreme Court of India in ABHISAR BUILDWELL P. LTD. [2023 (4) TMI 1056 - SUPREME COURT] and answer the question framed in favour of the assessee and against the Revenue.
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