TMI Blog2021 (10) TMI 283X X X X Extracts X X X X X X X X Extracts X X X X ..... & 4503/Del/2014 - - - Dated:- 6-10-2021 - SH. ANIL CHATURVEDI , ACCOUNTANT MEMBER Assessee by : Shri Madhur Aggarwal , Advocate Revenue by : Shri R. K. Gupta , Sr. D.R. ORDER PER ANIL CHATURVEDI, AM: Both the appeals filed by the assessee are directed against the order dated 27.05.2014 of the Commissioner of Income Tax (Appeals)-XXV, New Delhi relating to Assessment Years 2006-07 2007-08 2. At the outset, Learned AR submitted that the issue involved in both the appeals are identical except for the year and amounts involved and therefore the submissions made by him for one year would be applicable to the other year also. Ld DR did not controvert the aforesaid submissions of Ld AR. In view of the aforesaid submissions of the Counsel, I for the sake of convenience proceed to dispose of both the appeals by a consolidated order but for the sake of reference refer to the facts for A.Y. 2006-07. 3. The relevant facts as culled from the material on records are as under : 4. Assessee is an individual who filed his original return of income for AY 2006-07 on 31.10.2006 declaring total income at ₹ 3,99,369/-. The return of income was processed u/s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sment framed u/s 143(3) r.w.s 153A of the Act, which is a legal issue and goes to the root of the matter. Ld AR submitted that since all the material facts relevant to the legal issue are already on record and the issue as to scope of additions that can be made in an assessment u/s. 143(3) r.w.s. 153A of the Act, being a purely legal issue it can be raised at any time before the Tribunal. In support of his aforesaid contention, he placed reliance on the decision in the case of National Thermal Power Co. Ltd. vs. CIT reported in 229 ITR 383 and M/s Jute Corporation of India Ltd. vs. CIT reported in 187 ITR 688 (SC). He therefore submitted that the additional ground of appeal be admitted and appropriate order be passed in the interest of rendering substantial justice. 7. On the issue of the admissibility of additional ground of appeal, Learned DR strongly objected to the plea for admission of additional ground. He submitted that the ratio of decision in the case of Jute Corporation of India Ltd. (supra) would not be applicable to the facts of the present case because ratio of the decision is that the additional ground could be raised only if it could not have been raised at the st ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f assessee was conducted on 10.2.2010 and during the course of such search no incriminating documents whatsoever was found. He submitted that in the assessment framed u/s 153A of the Act addition of ₹ 3,47,000/- has been made on account of cash deposits in the bank account of the minor child of the assessee, Avya Seth and Aryan Seth. He submitted that no bank statement was found or seized during the course of search. He submitted that the scope of the assessment proceedings u/s 153A of the Act in respect of an assessment which has already been completed is restricted only to making an assessment of income which are based on incriminating material found during the course of search. He submitted that in the case of concluded assessments, the A.O. has no jurisdiction to make additions towards addition to returned income in the absence of any incriminating materials. The A.R. further submitted that in the case of abated assessments and assessments which are pending as on the date of search, the A.O. can assume jurisdiction to assess/reassess total income, which is found during the course of search. In the present case, the assessment for the assessment year 2006-07 since no proce ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... se of search. The assessment proceedings which have been completed as on the date of search u/s.132 of the Act will however continue to remain valid. Thus the former proceedings are referred to as abated assessment proceedings and the latter proceedings are referred to as unabated assessment proceedings . 13. It is an undisputed fact that in the present case the return of income for A.Y. 2006-07 which was filed by the assessee on 31.10.2006 declaring income of ₹ 3,99,369/- and the return of income was processed u/s 143(1) of the Act. No notice u/s 143(2) of the Act was issued for making the assessment u/s 143(3) of the Act within the period laid down in the proviso to section 143(2) of the Act namely 31.10.2007. Therefore, assessment proceedings stood completed and that in any case on the date of search i.e. on 10.2.2010 the assessment for the impugned assessment year 2006-07 was not pending. Therefore the acceptance of the return of income amounts to an assessment and such assessment did not abate in terms of the Second Proviso to section 153A(1) of the Act. 14. It is the plea of the learned counsel for the Assessee that the impugned additions made by the Assessing ..... X X X X Extracts X X X X X X X X Extracts X X X X
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