TMI Blog2015 (10) TMI 2569X X X X Extracts X X X X X X X X Extracts X X X X ..... ment finalized under section 153A of the Act in the absence of incriminating material having not been found during the course of search, qua the impugned addition. Thus set aside the order of the CIT(A) and direct the Assessing Officer to delete the addition made as the same is purported to be beyond the scope and ambit of assessment envisaged under section 153A of the Act. - Decided in favour of assessee - ITA No. 3454/MUM/2015 - - - Dated:- 30-10-2015 - SHRI G.S. PANNU, ACCOUNTANT MEMBER. Appellant by : Shri Anuj Kishnadwala Respondent by : Shri T. Sasi Kumar ORDER PER G.S. PANNU, AM: The captioned appeal is preferred by the assessee and is directed against the impugned order dated 01/04/2015 of CIT(A)-48, M ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... for a return of income, in response to which assessee filed a return of income declaring an income of ₹ 8,98,619/- on 26/12/2011, as against an income of ₹ 8,58,390/- originally filed in return of income filed under section 139(1) of the Act on 19/4/2007. The return of income filed by the assessee was subject to scrutiny assessment under section 143(3) r.w. section 153 A of the Act, whereby the total income has been assessed at ₹ 9,74,220/- The difference between the returned and the assessed income was primarily on account of an addition of ₹ 75,600/- made by the Assessing Officer on account of notional rent of properties at Karjat and Nalasopara. 3. Before me, the Ld. Representative for the assessee contended t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... .12.2013. (vi) Gurinder Singh Bawa, ITA No.2075/Mum/2010 order dated 16/11/2012 (vii) Raksha Chhadwa vs. ACIT, ITA No.8576 8577/Mum/2010 for A.Y 2003-04 2005-06 order dated 17.10.2014 4. On the other hand, Ld. Departmental Representative appearing for the Revenue has defended the action of the income tax authorities pointed out that the provisions of section 153A of the Act empower the Assessing Officer to assess or re-assess the total income of six Assessment Years immediately preceding the assessment year relevant to the previous year in which such search was conducted. As per Ld. Departmental Representative the Assessing Officer was duty bound to assess or reassess total income of such assessment years and, therefore, the i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Assessing Officer. Notably, there would assessments in the period of the six assessment years identified in section 153A(1) of the Act, which would have become final (i.e. which are not pending on the date of search); such assessments do not abate in terms of the second proviso to sec.153A(1) of the Act. The scope and ambit of such an assessment is the controversy before me. In this context, it would be pertinent to refer to the judgment of the Hon ble Bombay High Court in the case of CIT vs. Continental Warehousing Corporation (Nhava-Sheva) 58 Taxmann.Com 78 (Bom) wherein the scope of an assessment under section 153A of the Act has been considered. One of the points addressed by the Hon ble High Court was whether the scope of assessment ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that emerges is as under: i. Once a search takes place under Section 132 of the Act, notice under Section 153A(1) will have to be mandatorily issued to the person searched requiring him to file returns for six AYs immediately preceding the previous year relevant to the AY in which the search takes places. ii. Assessments and reassessments pending on the date of the search shall abate. The total income for such AYs will have to be computed by the AOs as a fresh exercise. iii. The AO will exercise normal assessment powers in respect of the six years previous to the relevant AY in which the search take place. The AO has the power to assess and reassess the total income of the aforementioned six years in separate assessment ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rial unearthed during the course of search or requisition of documents or undisclosed income or property discovered in the course of search which were not produced or not already disclosed or made known in the course of original assessment. 5.2 Factually speaking, in the present case the assessment for the year under consideration stood completed on the date of search. I have perused the assessment order and find that there is nothing brought on record to suggest that any material was found during course of search in relation to the impugned addition. The entire discussion on this point in para-3 of the assessment order does not refer to any material found during the course of search leave alone any incriminating material. Therefore, ..... X X X X Extracts X X X X X X X X Extracts X X X X
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