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TMI Blog2018 (3) TMI 1975X X X X Extracts X X X X X X X X Extracts X X X X ..... als, the sum and substance of the dispute arises from the decision of the CIT(A) in holding that in the absence of any incriminating material found in the course of search, no additions are permissible in the assessments made u/s 153C of the Income Tax Act, 1961 (in short 'the Act') in years where the original assessments do not abate, following the ratio of the judgment of the Hon'ble Bombay High Court in the case of CIT vs. Continental Warehousing Corporation (Nhava Sheva Ltd) (374 ITR 645). 3. In this background, the rival counsels have been heard. It was a common point between the parties that in all the appeals, the fact-situation is more or less identical and, therefore, we may first take-up six appeals pertaining to Assessment Y ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... explained Creditors', ' Unexplained Share Capital', 'Unexplained Cash Credits' as well as 'Estimation of Business Profits'. All the additions were assailed by the assessee before the CIT(A) on various Grounds on facts and in law. One of the pertinent points sought to be raised by the assessee was that none of the additions were based on any incriminating material found in the course of search and, thus the same could not be made in an assessment u/s 153A/153C of the Act, as the original assessment did not abate. A Remand report was also called for by the CIT(A) on this aspect. In such Remand report, which has been noted by the CIT(A) in his order in para 2.12, the Assessing Officer, inter-alia, contended that there was "no requirement of an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e to be the date on which the Assessing Officer issued notice u/s 153C of the Act, which is 19.11.2012. 6. In this background, the ld. DR reiterated the stand of the Assessing Officer and sought to rely on the decision of the Hon'ble Kerala High Court in the case of CIT vs. St. Francis Clay Decor Tiles, 385 ITR 624 (Kerala), CIT vs. Dr. P. Sasikumar, 387 ITR 8 (Kerala) and E.N. Gopakumar vs. CIT, 390 ITR 131 (Kerala) to contend that the assessments generated by issuance of a notice u/s 153A(1) of the Act can be concluded against the assessee by making additions even without any incriminating material being available against the assessee. 7. On the other hand, the learned representative for the assessee furnished a year-wise chart of a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... urisdiction over such other person" Notably, second proviso to Sec. 153A(1) of the Act prescribes the guide as to under which circumstances the original assessment or reassessment for the prescribed six assessment years shall abate. With respect to an assessee covered u/s 153C of the Act, the prescription of second proviso to Sec. 153A(1) of the Act has to be applied taking into account the first proviso to Sec. 153C of the Act, which we have reproduced above. 9. In terms of the aforesaid proviso, it is prescribed that for the purposes of examining the efficacy of the second proviso to Sec. 153A(1) of the Act, the reference to the date of initiation of search or making of requisition contained therein, shall be construed as reference to t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hereby affirm the same. In this fact-situation, the ratio of the judgment of the Hon'ble Bombay High Court in the case of Continental Warehousing Corporation (Nhava Sheva Ltd) (supra) is squarely attracted, and the CIT(A) made no mistake in deleting the additions. The order of CIT(A) is hereby affirmed. Thus, the appeals of the Revenue in the case of M/s. Speciality Paper Ltd. for Assessment Years 2004-05 to 2009-10 are dismissed as above. 11. Before parting, we may mention that insofar as the reliance placed by the Revenue on the judgments of the Hon'ble Kerala High Court in the case of CIT vs. St. Francis Clay Decor Tiles, 385 ITR 624 (Kerala); CIT vs. Dr. P. Sasikumar, 387 ITR 8 (Kerala) and E.N. Gopakumar vs. CIT, 390 ITR 131 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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