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TMI Blog2017 (7) TMI 1043X X X X Extracts X X X X X X X X Extracts X X X X ..... .w.s.153A of the Income-tax Act, 1961. Since common issues are involved in all the appeals arising out of identical set of facts, therefore, same were heard together and are being disposed off by way of this consolidated order. 2. We will first take up appeal for the Assessment Year 2004- 05, wherein the assessee has raised following grounds :- "1. The Ld. CIT(A) has grossly erred on facts as well as in law in holding that the assessment order in the name of the appellant U/S 153A is not illegal inspite of the fact that there was no separate search warrant in the name of the appellant, there being search warrant only in the joint name of the appellant and Smt. Shashi Puri. 2. The Ld. CIT(A) has grossly erred on facts as well as in law ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hile adding the amount of gifts. The ld. CIT (A) has rejected the assessee's contention relying upon certain Tribunal decisions which no longer have any persuasive value in the light of the decision of Hon'ble jurisdictional High Court in the case of Kabul Chawla (supra). 4. On the other hand, the ld. CIT DR, strongly relied upon the order of the CIT (A), submitted that once reassessment is being made u/s 153A then it is open to the AO to assess any such income emanating from either the seized material or the return of income. 5. We have heard the rival contentions and perused the relevant finding given in the impugned orders. Here in this case, original return of income was filed on 14.02.2005 wherein the gifts amounting to Rs. 19,17,443 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Chawla (supra), after discussing the entire law on this point and after referring to the various decisions of Delhi High Court as well as other High Courts including that of Hon'ble Bombay High Court in the case of CIT vs. Continental Warehousing Corporation, came to the following conclusion :- "37. On a conspectus of Section 153A (1) of the Act, read with the provisos thereto, and in the light of the law explained in the aforementioned decisions, the legal position that emerges is as under: i. Once a search takes place under Section 132 of the Act, notice under Section 153 A (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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as pending assessments are concerned, the jurisdiction to make the original assessment and the assessment under Section 153A merges into one. Only one assessment shall be made separately for each AY on the basis of the findings of the search and any other material existing or brought on the record of the AO. vii. Completed assessments can be interfered with by the AO while making the assessment under Section 153 A only on the basis of some incriminating material 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." [Emphasis added is ours] Moreover, we fi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... essment order, it is quite apparent that no incriminating material has been found during the course of search that the opening balance as shown in the balance sheet as on 31.03.2001 in the form of cash in hand or bank balance of Rs. 3,03,309/- is an undisclosed income which has been unearthed on the basis of any incriminating material found during the course of search. Moreover, the amount of opening balance cannot be added unless something incriminating is found qua the same amount of closing balance as reflected in the balance sheet of the earlier year. Thus, this addition cannot be made while making reassessment under the provisions of section 153A. Here again our finding given as above in the earlier two years will also apply to this ye ..... X X X X Extracts X X X X X X X X Extracts X X X X
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