TMI Blog2018 (8) TMI 1764X X X X Extracts X X X X X X X X Extracts X X X X ..... y the Revenue and cross objection by the assessee are directed against the order dated 03.08.2015 of Commissioner of Income Tax [Appeals] - 23, New Delhi pertaining to assessment year 2006-07. 2. The sole grievance of the Revenue is that the CIT(A) erred in deleting the addition of ₹ 3 crores made by the AO on account of share capital/premium. 3. In its cross objection, the assessee has alleged that the CIT(A) ought to have quashed the assessment order framed u/s 153A of the Income-tax Act, 1961 [hereinafter referred to as 'the Act'] since no document, much less incriminating material was found during the course of search. 4. Since the cross objection by the assessee goes to the root of the matter, we take up the cros ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ectus 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 in which the search takes place. 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 relev ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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. 38. The present appeals concern AYs, 2002-03, 2005-06 and 2006-07.On the date of the search the said assessments already stood completed. Since no incriminating material was unearthed during the search, no additions could have been made to the income already assessed. 8. The ld. DR tried to support the findings of the lower authorit ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
