TMI Blog2018 (2) TMI 506X X X X Extracts X X X X X X X X Extracts X X X X ..... which was already disclosed to the department, and with regard to that no incriminating material was found. This aspect has been considered by us in the order of Shripal Sampatraj Chowdhary extracted (2018 (2) TMI 423 - ITAT AHMEDABAD)(2018 (2) TMI 427 - ITAT AHMEDABAD). Following order of the Co-ordinate Bench, we allow all these appeals, and direct the AO to delete impugned additions. - Decided in favour of assessee. - IT (SS) A No. 25, 26, 30, 31,34 ,35 /AHD/2015 - - - Dated:- 5-2-2018 - Shri Rajpal Yadav, Judicial Member And Shri Amarjit Singh, Accountant Member Assessee by : Shri Prakash D. Shah, CA Revenue by : Aparna Agrawal, CIT-DR ORDER Per Rajpal Yadav, Judicial Member Present appeals are directed at the instance of different assessees against common order of the ld.CIT(A)-12, Ahmedabad dated 22.12.2014 passed for the assessment year 2009-10. 2. Solitary grievance of the assessees is that the ld.CIT(A) has erred in confirming additions in respective hands of the assessees on account of alleged investment in jewellery. 3. With the assistance of the ld.representatives, we have gone through the record carefully. It emerges out from the record ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r.No.3 of the case title in the order of the ld.CIT(A). The ld.DR was unable to controvert the above facts. 7. Order of the ITAT in the case of Sampatraj Lalchand Chowdhary, in ITA No.32 and 33/Ahd/2015 reads as under: 1. IT(SS)A Nos. 32 33/Ahd/2015 are appeals by two different Assessees preferred against the very same order of the Ld. CIT(A)-12, Ahmedabad dated 22.12.2014 pertaining to A.Y. 2009-10. 2. Since the First Appellate Authority has disposed of these appeals by a common order, therefore, both these appeals were heard together and are disposed of by this common order for the sake of convenience and brevity. 3. At the very outset, we would like to state that the grievance is common in both these appeals and which relates to the order framed u/s. 153A of the Act when no incriminating material was found during the course of the search proceedings. 4. Briefly stated the facts of the case are that a search and seizure operation was conducted at the premises of the assessees on 22.09.2011. During the search proceedings, gold, jewellery and other valuable items were found from the residence bank lockers of the assessees. 5. During the course of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Gross (gram) Gold Quantity-Net (Gram) Diamond Jewellary (Ct.) Silver Quantity (KG) Sampatraj Lalchand Chowdhary 1679.2 1606.97 38.98 10.5 Pushpadevi Chowdhary 2412.35 1756.5 8.08 0 Shreepal Chowdhary 498.12 498.12 26.62. 37.8 Yamini 1588.3 1714,918 53.13 0 Shrenik Chowdhary 1542.9 1293.6 21.4 24.3 Archana Chowdhary 2137.4 1685.2 13.13 4.5 Sampatraj L.Chowdhary-HUF 827.2 781.7 44.119 43.5 Total 10685.47 9337.008 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd -189.70 39.69 -39.34 Value of Excess found 1389185 f. From the above you may observe that there was excess diamond of 32.69 ct in possession comparison with the wealth tax return filed by all the members of the family. The excess diamond found was seized by your office along-with gold Jewellary as diamond was mounted to gold Jewellary. g. Excess diamond found was disclosed in Assessment Year 2012-13 as a part of disclosure given by Shri Shankarlal Chowdhary related to Shri Sampatraj L. Chowdhary. 6. The detailed submissions (supra) made by the assessee did not find any favour with the A.O. The A.O. was of the opinion that mere filing of Wealth tax Return does not rule out the question of genuineness of sources of acquisition of jewellery in question. The A.O. concluded by making addition of unaccounted gold in the hands of the assessees. 7. Assessee carried the matter before the ld. CIT(A) but without any success. 8. Before us, the ld. counsel for the assessee vehemently stated that the impugned assessment is bad in law inasmu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on the facts and in the circumstances of the case, the Hon'ble ITAT is correct in law in holding that the scope of Sec. 153A is limited to assessing only search related income, thereby denying Revenue the opportunity of taxing other escaped income, that comes to the notice of the AO.? 3. Whether on the facts and in the circumstances of the case, the Hon'ble ITAT was right in limiting the scope of Sec. 153A only to undisclosed income when as per the section the AO has to assess the total income of the six assessment years? - and the Hon ble High Court of Bombay finally held as under:- We, therefore, dismiss the Revenue s appeal and answer the substantial question of law against the Revenue and in favour of assessee. 11. Now, the other issue which has to be decided is whether the time limit of issue of notice u/s. 143(2) if found expired can be construed as completed assessment. To this question, the answer is given by the Co-ordinate Bench of the Tribunal Delhi in the case of PACL India Ltd. in ITA no. 2637/Del/2010 and the same reads as under:- 7. After hearing both the sides on the issue and taking into consideration, records available the follow ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the period for issuing the notice u/s 143(2) elapsed. The process has attained the finality which can only be assailed u/s 148 or 263 of the IT Act. Such proceedings can never be initiated u/s 143(2) when the time period for issuing notice u/s 143(2) has expired. Hon'ble ITAT, Mumbai C Bench in the case of ACIT Vs. Pratibha Industrialist Ltd. reported in 23 ITR Tribunal 766 Mumbai has also held as under :- Although by proceedings initiated under section 153A all six years shall become subject matter of assessment under section 153A the Assessing Officer shall have a free-hand, through abatement, only on the proceedings that are pending, to frame the assessments afresh. But in a case where the proceedings have reached finality, assessment under section 153A read with section 143(3) and certain incriminating documents have been found indicating undisclosed income, the addition shall only be restricted to those documents or incriminating material, and clubbed only to the assessment framed originally, as the law does not permit the Assessing Officer to disturb issues already concluded. Where on the date of initiation of search under section 132 or requisition of books, no pro ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 153A 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. 13. The aforementioned ratio laid down by the Hon ble High Court of Delhi has been followed by the Hon ble High Court of Delhi in the case of Lata Jain in Income Tax Appeal No. 274 276 of 2016 wherein the Hon ble High Court held as under:- 5. The short point involved is whether the ITAT was correct in concluding that there had to be incriminating material recovered during the search qua the Assessee in each of the years for the purposes of framing an assessment under Section 153 A of the Act? 6. It is not in dispute that in ..... X X X X Extracts X X X X X X X X Extracts X X X X
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