TMI Blog2016 (11) TMI 72X X X X Extracts X X X X X X X X Extracts X X X X ..... )(a), it is not necessary that the search on which it was founded should have necessarily yielded any incriminating material against the assessee or the person to whom such notice is issued. Is it necessary that any incriminating material ought to have been unearthed in the search under Section 132 of the Act to make any additions to the returns filed by the assessee following notice under Section 153A(1)(a)? - Held that:- Once a return is filed in answer to such a notice, the Explanation to Section 153A provides, among other things, that all provisions of the Income Tax Act will apply to the assessment made under Section 153A of the Act. This is the manner in which the provisions in Sections 153A, 153B and 153C of the Act would regulat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... re by an individual assessee. The appeals relate to different consecutive years. 2. We have heard the learned counsel for the appellant and the learned Senior Standing Counsel for the Department of Income Tax. 3. The assessee, an individual, has different sources of income either relating to trade and commerce or otherwise. For the relevant years, he voluntarily filed returns under Section 139 of the Act. The assessments were completed. Thereafter, on 19.2.2010, there was a search and seizure operation under Section 132 of the Act in the residential premises of the assessee. Consequent thereto, notice was issued under Section 153A(1)(a) of the Act calling upon the assessee to furnish return of income for the different consecutive year ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lised against him. The learned counsel pointed out the judgment of the Bombay High Court in Commissioner of Income-tax v. Continental Warehousing Corporation (Nhava Sheva) Ltd. [(2015)374 ITR 645], the judgments of the Delhi High Court in Principal Commissioner of Income-tax v. Kurele Paper Mills P.Ltd. [(2016)380 ITR 571] and Commissioner of Income-tax v. Kabul Chawla [(2016)380 ITR 573] and the decision of the High Court of Karnataka in Commissioner of Incometax v. Lancy Constructions [(2016)383 ITR 168] to argue for the position that in the absence of any incriminating materials having been unearthed in a search under Section 132, it was impermissible to conclude any assessment under Section 153A(1)(a) of the Act against t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Act, is it necessary that incriminating materials were unearthed as against the assessee in the search under Section 132 of the Act? Is it legally sustainable to conclude an assessment of such a nature in the absence of any incriminating material having been unearthed in the search? Is it necessary that any incriminating material ought to have been unearthed in the search under Section 132 of the Act to make any additions to the returns filed by the assessee following notice under Section 153A(1)(a)? 7. In so far as the issue as to whether it is necessary that incriminating materials should be unearthed in a search under Section 132 of the Act to sustain a notice issued under Section 153A(1)(a) is concerned, the issue stands covered in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... within the jurisdiction of the a ssessing authority to proceed with any lawful modes of assessment as prescribed in the Act. The Statute nowhere makes it conditional that the department has to unearth some incriminating material to conclude some method against the assessee in events where the assessment is triggered by a notice under Section 153A(1)(a) of the Act. This means that even when such notice is triggered following a search, the assessment proceedings can be concluded in any manner known to law, including under Section 143(3) or even Section 144 of the Act, if need be. Therefore, the assessment proceedings generated by the issuance of a notice under Section 153A (1)(a) of the Act can be concluded against the interest of the assesse ..... X X X X Extracts X X X X X X X X Extracts X X X X
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