2017 (4) TMI 57 - ALLAHABAD HIGH COURT

Scope of Section 153A - whether AO has power to reassess return of Assessee not only for the undisclosed income found during search operation but also in regard to assessment order already finalized or stood processed under Sectin 143(1)? - Held that:- As is evident Section 153A commenced with the words notwithstanding anything contained in Section 139, 147, 148, 149, 151 and 153, meaning thereby whatever has been provided in the aforesaid provisions that will not bar Assessing Officer in proceeding with the assessment or reassessment of total income for six assessment years, immediately preceding the assessment year relevant to the previous year in which such search is conducted or requisition is made.

The word 'assess' or 'reassess' not only suggest but show that power under Section 153A includes reassessment and that would be done only when assessment has already been finalized. There is inherent hint in Section 153A and there is no reason to restrict its scope.

We find that this issue has now been finalized by a Division Bench of this Court in Commissioner of Income Tax Vs. Raj Kumar Arora [2014 (10) TMI 255 - ALLAHABAD HIGH COURT ] wherein held that the reasons given by the Tribunal that no material was found during the search cannot be sustained, since we have held that the Assessing Officer has the power to reassess the returns of the assessee not only for the undisclosed income, which was found during the search operation but also with regard to the material that was available at the time of the original assessment.

The judgment and order of Tribunal to this extent is hereby set aside and the additions made by Assessing Authority which were deleted by Tribunal by taking otherwise view with respect to the scope of Section 153A are restored. - Decided in favour of revenue