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2022 (9) TMI 477 - HC - Income TaxValidity of assessment u/s 153A - Whether assessment or re-assessment under Section 153-A can be framed only on the basis of incriminating material found during the course of search under Section 132 ? - Substantial question of law - HELD THAT:- The aforesaid substantial questions of law have been answered by this Court in a bunch of appeals in M/s Shri Mehndipur Balaji [2022 (7) TMI 294 - ALLAHABAD HIGH COURT] wherein taking note of the Division Bench judgment of this Court in Kesarwani Zarda Bhandar Sahson Alld [2017 (4) TMI 57 - ALLAHABAD HIGH COURT] and other connected appeals, the substantial question of law involved therein were answered stating in cases where the assessment or reassessment proceedings have already been completed and assessment orders have been passed, which were subsisting when the search was made, the Assessing Officer would be competent to reopen the assessment proceeding already made and determine the total income of the assessee. The Assessing Officer, while exercising the power under Section 153A of the Act, would make assessment and compute the total income of the assessee including the undisclosed income, notwithstanding the assessee had filed the return before the date of search which stood processed under Section 143(1)(a) of the Act. In the light of the aforesaid, 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 impugned order of the Income Tax Appellate Tribunal is hereby set aside and the appeal before the Tribunal is restored to its original number.
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