TMI Blog2021 (10) TMI 99X X X X Extracts X X X X X X X X Extracts X X X X ..... inality, unless the materials gathered in the course of the proceedings under section 153A establish that the reliefs granted under the finalised assessment/ reassessment were contrary to the facts unearthed during the course of 153A proceedings. The CIT could not have invoked the jurisdiction u/sec. 263 of the Act on the ground that the assessment order passed by the AO u/sec. 153A r.w.s. 143(3) was erroneous and prejudicial to the interest of revenue. From the conclusion of the Hon'ble Bombay High Court in the said case it is clear that if no incriminating material found during the course of search operation u/sec. 132 of the Act and the assessment /reassessment has attained finality, then the same cannot be disturbed u/sec. 263 of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... which resulted into passing of assessment order dated 10/11/2016 u/sec. 153A r.w.s. 143 of the Act and total income was assessed at ₹ 4,93,82,49,811/-. Later on, the said assessment order was scrutinized by the Pr.CIT u/sec. 263 of the Act and the same was held as erroneous and prejudicial to the interest of the revenue and consequently the AO was directed to re-frame the assessment after examining the following issues: a. allowance of depreciation at 10% on water treatment systems, b. difference of unsecured loan to the tune of ₹ 3.00 crores between the figure reported in Form 3CD and the balance sheet, c. substantial investments in shares and securities, income from which does not form part of total income. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by the Ld. PCIT under the provisions of section 263 of the Act may please be cancelled. 5. The main grievance of the Assessee in this appeal is that no incriminating material or documents were unearthed and seized during the course of survey operation u/sec. 132 of the Act and even otherwise, the assessment in this case was not pending as on the date of initiation of search and had already attained finality and therefore the assessment order cannot be revised u/sec. 263 of the Act. 6. On the contrary, the ld. DR submitted that the ld. Pr.CIT is empowered by the provisions of section 263 of the Act, therefore he has rightly revised the assessment order in this case and the order of ld. Pr.CIT is neither contrary to the law and facts ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sis of a fresh appraisal of the existing materials that formed part of the original assessment. It is urged by the Revenue that the CIT acted within his jurisdiction in concluding that the AO erroneously did not bring to tax the amount that had to be included under section 2(22)(e) facially itself, therefore, the CIT s order was justified, consequently, the ITAT should not have interfered with that determination. 4. There is no dispute that the search and seizure proceedings in this case did not result in anything, therefore, material either in the form of books of account or other documents related to the issue of deemed dividend under Section 2(22) of the Act. The amounts paid were in fact originally declared in the assessment retur ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he existing materials that formed part of the original assessment. 7.2 The Hon‟ble Delhi High Court in the case titled as CCIT Vs. Kabul Chawla (ITA 707/2014, dated 28.08.2015), clearly held that if on the date of search, the assessment proceedings already stood completed and no incriminating material unearthed during the search, then no addition can be made to the income already assessed. The said dictum of the Hon'ble High Court confirmed by the Hon'ble Apex Court vide order dated 2nd July, 2018 in the case of Pr. Joint CIT vs. Meeta Gutgutia (supra) by dismissing the SLP filed against the judgment of Delhi High Court, wherein the same dictum has been laid down by the Hon'ble Court as laid down in the CIT vs. Kabul Ch ..... X X X X Extracts X X X X X X X X Extracts X X X X
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