TMI Blog2017 (7) TMI 1315X X X X Extracts X X X X X X X X Extracts X X X X ..... s. Kabul Chawla [ 2015 (9) TMI 80 - DELHI HIGH COURT] hold that the ld. CIT (Appeals) was justified in deleting the addition made by the Assessing Officer in the assessment framed under section 153A - Decided in favour of assessee - I. T. Appeal Nos. 4877 And 4878/Del/2014 - - - Dated:- 4-7-2017 - SHRI I. C. SUDHIR, JUDICIAL MEMBER AND SHRI O. P. KANT, ACCOUNTANT MEMBER For The Assessee : Shri R. S. Singhvi, C. A, And Shri Satyajeet Goel, C. A. For The Department : Shri A. K. Saroha, CIT [DR] ORDER. PER I. C. SUDHIR, J. M. : The Revenue has questioned first appellate order on the following common grounds :- 1. On the facts and in the circumstances of the case, the CIT (A) has erred in law and on facts and committed legal error by not appreciating the facts in its entirety as brought on record in the case of Sh. Anil Bhatia by the jurisdictional High Court 2. On the facts and in the circumstances of the case, the CIT (A) has erred in law and on facts in arriving at the conclusion that the words total income as used in section 153A wo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 3A of the Act. He submitted that special audit report was linked with search. He submitted that there is no mention of the word incriminating in the provisions laid down under section 153A of the Act. He placed reliance on the decision of Hon ble jurisdictional High Court of Delhi in the case of CIT Vs. Kabul Chawla (2015) 61 taxman.com 412 (Del.) and referred para No. 37 thereof. He submitted that as per clause (i) to para No. 37 of the decision once a search takes place under section 132 of the Act, notice under section 153A(i) will have to be mandatorily issued to the person searched requiring him to file returns for six years immediately preceding the previous year relevant to the assessment year in which the search takes place. Referring clause No. (iii) and (iv) of the said paragraph of the decision, the ld. CIT [DR] submitted that the Assessing Officer will exercise normal assessment powers in respect of the 6 years previous to the relevant assessment year in which the search takes place. The Assessing Officer has power to assess and reassess the total income of the aforementioned 6 years in separate assessment orders for each of the 6 years. There will be only one assessm ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... any incriminating material being available against the assessee in search under section 132 of the Act. 3.2 The ld. AR, on the other hand, tried to justify the first appellate order with this submission that no incriminating material was found during the course of search conducted on 21.01.2011. Special audit under section 142(2A) was directed by the Assessing Officer much after the date of search and during the assessment proceedings. He submitted that special audit was directed in the case of Dharampal Satyapal Ltd. He placed reliance on the following decisions :- ( i) Pr. CIT Vs. Meeta Gutgutia Prop. M/s. Ferns N Petals Others, ITA. Nos. 306 and 307/2017 [ decision dated 25.05.2017 (Del.HC) ]; ( ii) CIT Vs. Kabul Chawla (2016) 380 ITR 573 (Del.); ( iii) CIT Vs. Pinaki Misra (2017) 392 ITR 347 (Del.). 4. Having gone through the above cited decisions, we find that the ratio laid down by the Hon ble jurisdictional High Court of Delhi on an identical issue is binding upon the Tribunal. In its recent decision on 25.05.2017 in the case of Pr. CIT Vs. Meeta Gutgutia (supra), ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... -search material or information available with the Assessing Officer which can be related to the evidence found, it does not mean that the assessment can be arbitrary or made without any relevance or nexus with the seized material. Obviously an assessment has to be made under this Section only on the basis of seized material. v. In absence of any incriminating material, the completed assessment can be reiterated and the abated assessment or reassessment can be made. The word 'assess' in Section 153A is relatable to abated proceedings (i.e. those pending on the date of search) and the word 'reassess' to completed assessment proceedings. vi. In so far 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 Assessing Officer. vii. Completed assessments can be interfered with by the Assessing Officer while making the assessment under Section 153A only on the basis of so ..... X X X X Extracts X X X X X X X X Extracts X X X X
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