TMI Blog2013 (1) TMI 803X X X X Extracts X X X X X X X X Extracts X X X X ..... ppellant : Shri Manish Sanghvi For the Respondent : Shri A.P. Singh ORDER PER RAJENDRA SINGH, AM: These appeals by the assessee are directed against different orders dated 13.2.2009, 13.2.2009 and 25.2.2009 of CIT(A) for the assessment years 2001-02, 2002-03 and 2004-05. The disputes raised by the assessee in these appeals relate to various additions made by the AO in the assessment made under section 143(3)/153A. In addition, the assessee has also challenged the legal validity of additions made u/s. 153(a) when there was no incriminating material found, in all years as the additional ground. The additional ground being legal which could be adjudicated on the basis of material available on record was admitted by the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... claim of interest relating to interest free advances amounting to ₹ 2,67,480/-. The AO also disallowed 50% of expenses at ₹ 76,565/- in assessment year 2004-05 claimed against earning of commission income. In appeal, CIT(A) confirmed the addition made by AO. The assessee has challenged the decision of CIT(A) on the merit of additions confirmed by him. In addition as pointed out earlier, the assessee has also filed additional ground challenging the legal validity of addition made under section 153A which has been admitted by the Tribunal for adjudication. 3. We first take up the issue relating to legal validity of additions made under section 153A because this is a basic issue having a bearing on the outcome of the appeal its ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ix assessment year if pending on the date of initiation of search shall abate. There have been divergent views regarding scope of application of section 153A in cases where no incriminating material was found indicating any undisclosed income. Some of the Tribunal Benches had taken the view that in case no incriminating material was found, AO had no jurisdiction to make assessment or reassessment under section 153A while some other Benches held that jurisdiction under section 153A was automatic to reassess six immediate preceding assessment years irrespective of the fact whether any incriminating material was found or not. Another aspect on which there had been divergent views was whether even if AO had jurisdiction under section 153A, addi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on 143(2) had expired on the date of search. Therefore, there was no assessment pending in this case and in such a case there was no question of abatement. Therefore, addition could be made only on the basis of incriminating material found during search. 5.1 In this case, the AO had made the assessment on the basis of information/material available in the returns of income. He has not referred to any incriminating material found at the time of search while making additions. As the assessment in this case at the time of search had attained finality, the AO could make addition only on the basis of incriminating material found at the time of search as held by the Special bench of the Tribunal in the case of Alcargo Global Logistics Ltd. (su ..... X X X X Extracts X X X X X X X X Extracts X X X X
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