TMI Blog2022 (5) TMI 1156X X X X Extracts X X X X X X X X Extracts X X X X ..... subject matter of proceedings u/s 153A of the Act. Consequently, the said additions made in the order of Assessment could not be made by the AO. We thus allow ground No.1 2 and hold the assessment order to be bad in law and accordingly quashed. - ITA No. 1917/Del/2015 And ITA No.1918/Del/2015 - - - Dated:- 23-5-2022 - Sh. Anil Chaturvedi, Accountant Member And Sh. Astha Chandra, Judicial Member For the Assessee : Shri R. C. Rai, C.A., Ms. Kamal Sharma, C.A. For the Revenue : Shri Ishtiyaque Ahmed, CIT-D.R. ORDER PER ANIL CHATURVEDI, AM : Both the appeals filed by the assessee are directed against the order dated 27.01.2015 of the Commissioner of Income Tax (Appeals) - 3, Gurgaon relating to Assessment Year 20 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssessee filed a letter on 03.10.2012 stating that the return of income filed by it on 30.03.2007 be treated as return of income in response to notice u/s 153A of the Act. The case was thereafter taken up for scrutiny and subsequently assessment was framed u/s 153A(1)(b) of the Act vide order dated 25.03.2013 and the total income was determined at Rs.1,55,00,000/-. Aggrieved by the order of AO, assessee carried the matter before CIT(A) who vide order dated 27.01.2015 in Appeal No.12K/CIT(A)(C)/GGN/2013- 14 dismissed the appeal of the assessee. Aggrieved by the order of CIT(A), assessee is now in appeal and has raised the following grounds: 1. On the facts and in the circumstances of the case as well as in law the Ld Commissioner of Inco ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the case as well as in law the Ld. Commissioner of Income Tax (Appeals) grossly erred in capriciously rejecting the assessment order of share applicant and other materials produced before authorities below. 7. The appellant crave leave to amend, alter, add/modify any or all grounds of appeal. These action of Hon ble Commissioner of Income Tax (Appeals) - III, Central, Gurgaon, Haryana., and Ld. Assessing officer being Arbitrary, unjust, Illegal and invalid in law are liable to quashed and it is prayed to Your Honor that they please be quashed and/or any other relief just deem fit and proper please be directed. 5. Similar grounds have been raised by assessee in ITA No.1918/Del/2015 for A.Y. 2006-07. 6. Before us, at the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . 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 Learned A.R. thereafter 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, since the assessment for the assessment year 2006-07 was deemed to have been completed and as no incriminating material was found, the AO has no jurisdiction to make an assessment of income which is not based on material found in the course of search. In support of his aforesaid contentions, h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ake one assessment after considering the original return of income as well as materials found in the course 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 . 11. It is an undisputed fact that in the present case the return of income for A.Y. 2006-07 was filed by the assessee on 31.10.2006 declaring income of Rs.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 up to 30.06.2008, being the period laid down in the proviso t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f the view that the assessment for AY 2006-07 was already completed prior to the date of search and having not abated, the scope of proceedings u/s.153A of the Act had to be confined only to material found in the course of search. Since no material on the basis of which the impugned addition has been made was found in the course of search, the additions made by the AO in the order of assessment could not have been subject matter of proceedings u/s 153A of the Act. Consequently, the said additions made in the order of Assessment could not be made by the AO. We thus allow ground No.1 2 and hold the assessment order to be bad in law and accordingly quashed. 15. Since we have quashed the assessment order, the other grounds raised by the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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