TMI Blog2020 (7) TMI 64X X X X Extracts X X X X X X X X Extracts X X X X ..... f total income determined under the earlier completed assessments is to be adopted in a fresh assessments u/s 153A without making any further addition. Juxtaposing these principles to the facts of the instant case, we find that the case of the assessee doesn t fall under the category of abated assessment. It falls under the category of completed assessments. In the completed assessment, it is an admitted position that if no incriminating material was found during the search, no addition is called for. In the instant case too, no incriminating material was found with regard to the addition made by the Assessing Officer. DR failed to establish that the additions made in the case of the assessee were based on any incriminating material ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s onus of proving genuineness and credit worthiness of the persons from whom advance money has been received. ii) Making addition u/s 68 of the act of ₹ 3,50,00 ,000/- although he has himself independently verified it by issuing summon for which M/s Instronics Ltd. has duly submitted its reply during the course of assessment proceeding. iii) Making addition u/s 68 of the act of ₹ 3,50,00 ,000/- although it has already been assessed u/ s 143 (3) of the act and no incriminating document relating to it was seized during the search proceeding or no evidence /facts come up as a result of search. iv) Making addition u/s 68 of the act of ₹ 3,50,00 ,000/- although this advance was duly refunded in the subsequent per ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... roduced before him. After due enquiries, the AO made addition of unsecured loan received from one party namely, Aerodyne Electronics Pvt. Ltd. treating it as bogus and liable to be taxed u/s 68 of the Act. 7. The moot jurisdictional issue before us to be adjudicated is whether such addition which is a part of books of accounts can be added to the income of the u/s 68 of the Act in the absence of any incriminating material found during the search especially when the assessment u/ s 143(3) of the Act has already been completed in the regular course of proceedings under Income Tax Act even before the date of search. 8. The sum and substance of the provisions of the Section 153A are as under: i. Once a search takes place under Secti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... made. The word 'assess' in Section 153 A is relatable to abated proceedings (i.e. those pending on the date of search) and the word ' reassess' to completed assessment proceedings. vi. Insofar 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 documen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessee were based on any incriminating material found in the course of search u/ s 132 of the Act. On perusal of the assessment order and on examination of the order of the ld. CIT (A), we find that the addition made is not based on any incriminating material. 12. Since, the addition was not based on incriminating material and the fact that assessment has not been abated, these twin conditions go against the order of the revenue as declared by the judicial pronouncement of the Hon ble Jurisdictional High Court in the case of CIT Vs Kabul Chawala 380 ITR 057 and PCIT Vs Meeta Gutgutia 395 ITR 526 (Del.). Hence the addition is liable to be deleted. 13. In the result, the appeal of the assessee is allowed. Order Pronounced in the Open ..... X X X X Extracts X X X X X X X X Extracts X X X X
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