TMI Blog2021 (9) TMI 65X X X X Extracts X X X X X X X X Extracts X X X X ..... the case of CIT vs. Kabul Chawla [ 2015 (9) TMI 80 - DELHI HIGH COURT] and Pr. CIT vs. Meeta Gutgutia [ 2017 (5) TMI 1224 - DELHI HIGH COURT] Thus there is no incriminating material qua each of the assessment year roped in under section 153A, then, no addition can be made while framing the assessment under section 153A. - Decided in favour of assessee. - ITA No. 1153/Del/2018 (Asstt. Year: 2008-09) - - - Dated:- 14-7-2021 - Sh. Amit Shukla, Judicial Member And Dr. B. R. R. Kumar, Accountant Member Assessee by: None Revenue by: Sh. Satpal Gulati, CIT DR ORDER Per Amit Shukla, Judicial Member: The present appeals have been filed by the assessee against the orders of ld. CIT (A)-35, New Delhi dated 17.11.2 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... se of search. In such a situation, addition is beyond the scope of section 153A and we rely upon the following judgments for adjudicating the matter: PCIT Vs. Meeta Gutgutia [2017] 82 taxmann.com 287 (Delhi) CIT Vs. Kabul Chawla [2016] 380 ITR 573 (Delhi) CIT Vs. Lancy Constructions [2016] 237 Taxman 728 (Karnataka). DCIT Vs. Kurele Paper Mills Pvt. Ltd. in ITA No.3761/Del/2011. Pr.CIT vs. Kurele Paper Mills Pvt. Ltd. in ITA No.369/2015 (Del HC). Pr. CIT VS. Kurele Paper Mills Pvt. Ltd. [2016] 380 ITR 65 (SC) CIT Vs. Saumya Construction P. Ltd. [2016] 387 ITR 529 (Guj) 6. On the other hand, the ld. DR though could not controvert the contention that there is no incriminating material found at ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 relevant AY in which the search takes place. The AO has the power to assess and reassess the 'total income' of the aforementioned six years in separate assessment orders for each of the six years. In other words there will be only one assessment order in respect of each of the six AYs i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... course of search which were not produced or not already disclosed or made known in the course of original assessment. 10. The Hon'ble High Court has also taken note of the judgment of their earlier judgment in the case of CIT vs. Anil Kumar Bhatia reported in [2013] 352 ITR 493 (Del) and observe that this was not the issue before the Court. Again in the case of Pr. CIT Vs. Meeta Gutgutia's (supra), their Lordships have again reiterated the same principle and have also considered the case of Smt. Dayawanti Gupta reported in 390 ITR 496. 11. The relevant observations made by their Lordships are as under: 56. Section 153A of the Act is titled Assessment in case of search or requisition . It is connected to Section 132 wh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ment years immediately preceding the assessment year relevant to the previous year in which the search took place. To repeat, there is no condition in this Section that additions should be strictly made on the basis of evidence found in the course of the search or other post-search material or Information available with the Assessing Officer which can be related to the evidence found. This, however, does not mean that the assessment under Section 153A 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. 13. In Kabul Chawla (supra), the Court discussed the decision in Filalex India Ltd. (supra) as well as the abo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n High Court in Jai Steel (India), Jodhpur v. A CIT (supra) involved a case where certain books of accounts and other documents that had not been produced in the course of original assessment were found in the course of search. It was held where undisclosed income or undisclosed property has been found as a consequence of the search, the same would also be taken into consideration while computing the total income under Section 153A of the Act. 15. The Court then explained as under: 22. In the firm opinion of this Court from a plain reading of the provision along with the purpose and purport of the said provision, which is intricately linked with search and requisition under Sections 132 and 132A of the Act, it is apparent that: ( ..... X X X X Extracts X X X X X X X X Extracts X X X X
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