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TMI Blog2022 (8) TMI 966X X X X Extracts X X X X X X X X Extracts X X X X ..... sideration in this appeal: " Whether the Tribunal was justified in law in not appreciating that there did not exist any incriminating material for issuing notice under section 153A of the Act and consequently the Tribunal ought to have quashed the assessment order and consequently passed a perverse order on the facts and circumstances of the case?" 2. We have heard Shri. S. Annamalai, learned Advocate for appellant and Shri. K.V. Aravind, learned Standing Counsel for the Revenue. 3. Brief facts of the case are, a search was conducted under Section 132 of the Income Tax Act, 1961 ('Act' for short) in the residential premises of the assessee. Assessing Officer issued a notice under Section 153A of the Act. In response to the notic ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... proceedings are initiated under Section 153A of the Act, the legal effect is, in case where the Assessment order is passed, it stands re-opened and in the eye of law there is no order of assessment. 6. Adverting to Section 153A of the Act, he submitted that once the proceedings are initiated under this provision, the Assessing Officer is required to assess or re-assess the total income of six assessment years. He further submitted that the ITAT has rightly followed the order passed by the jurisdictional High Court and hence, it does not call for any interference. 7. We have carefully considered rival contentions and perused the records. 8. The Authority in Canara Housing relied upon by the ITAT has been considered by this Court in Commis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... course of re-assessment and third, at a stage where the re-assessment is altered by a different assessment in respect of searched person or in respect of third party. In this regard, reference may be made to the decision of Apex Court in case of M/s. Calcutta Knitwear (supra) and based on the said decision, the CBDT has also issued circular dated 31.12.2015 vide No.24/2015. " 10. In Kabul Chawla, it is held as follows: "37. On a conspectus of Section 153A(1) of the Act, read with the provisos thereto, and in the light of the law explained in the aforementioned decisions, the legal position that emerges is as under: i. Once a search takes place under Section 132 of the Act, notice under Section 153 A (1) will have to be mandatorily iss ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . 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 documents or undisclosed income or property discovered in the course of search which were not produced or ..... X X X X Extracts X X X X X X X X Extracts X X X X
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