TMI Blog2022 (9) TMI 1424X X X X Extracts X X X X X X X X Extracts X X X X ..... ave been raised by the Revenue: (i) The order of Ld. CIT(A) is not correct in law and facts. (ii) On the facts and in the circumstances of the case, Ld. CIT(A) has erred in law facts in deleting the addition of Rs. 12,50,000/- on account of addition of unsecured loan u/s 68 of the IT Act, 1961. (iii) On the facts and in the circumstances of the case, the Ld. CIT(A) has erred in law and facts in deleting the addition of Rs.4,95,17,100/- on account of undisclosed investment in shares. (iv) On the facts and in the circumstances of the case, the Ld. CIT(A) has erred in quashing the assessment order passed by AO u/s 153A/143(3) by holding that the AO had wrongly assumed jurisdiction u/s 153A of the I.T. Act, 1961 and made addition to the returned income when no incrementing material was found during the course of search and seizure action. 3. The pertinent facts relevant to the adjudication of the appeal before us are as under: A search seizure action u/s 132 of the Income Tax Act, 1961 has been conducted on 30.03.2016. The Assessment Year pertain to 2010-11. The assessee filed return of income for the A.Y. 2010-11 u/s 139(1) on 20.09.2010 and the tim ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... done away with in the new scheme and there is only one assessment order for every year, wherein disclosed as well as undisclosed income has to be assessed. This position has been very clearly explained in Circular No. 7 of 2003 dated 05.09.2003. It was clearly specified in the earlier provisions that the undisclosed income determined u/s 158BC of the Act has to be based on some incriminating material found during the course of search. However, this fetter has been removed in the new scheme and it has been laid down that the AO has to assess or reassess the total income of the assessee. Had the intention of the Legislature been that only undisclosed income on the basis of any incriminating material can be assessed in the concluded proceedings, then the same would have found place in the provisions of the Act. 3. Further, the Assessing Officer in search cases is duly bound to complete the assessment u/s 153A of the Act and the provisions of section 153A of the Act clearly empower the AO to assess or reassess the total income of six assessment years immediately preceding the year in which search is conducted. This is irrespective of the fact that whether the Department has seized a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... search operation but also with regard to material available at time of original assessment 3. CIT Vs Kesarwani Zarda Bhandar Sahson Alld. [ITA No. 270 of 2014] (Allahabad) where Hon ble Allahabad High Court held that Assessing Officer has power to reassess returns of assessee not only for undisclosed income found during search operation but also with regard to material available at time of original assessment. 4. DR. A. V. Sreekumar Vs CIT Kerala High Court 90 taxmann.com 355 (Kerala) Where pursuant to search and enquiry unaccounted consideration from purchaser had been unearthed, it could not be said that other material already available with Department had been relied upon in proceedings. 5. CIT Vs St. Francis Clay Decor Tiles (385 ITR 624) where Hon ble Delhi Kerala Court held that notice issued under section 153A -return must be filed even if no incriminating documents discovered during search. 6. Vinod Kumar Gupta Vs DCIT ITA No. 1003 of 2017 where Hon ble Delhi High Court upheld addition made on the basis of statements made by his brother Sh. Suresh Kumar Gupta and the materials seized from his brother's premises, given that the premises were sepa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... All Cargo Global Logistics Limited Vs. DCIT [2012] 18 ITR 106, iii. ACIT, Central Circle-16, New Delhi vs. Vinita Chaurasia, ITA No. 5957/DEL/2015 dated 05.10.2018, iv. ACIT, Central Circle-4, New Delhi vs. M/s. Moolchand Steels Pvt. Ltd., ITA No. 2544/DEL/2015 dated 10.10.2018 etc. 8. The Hon ble Delhi High Court in the case of CIT Vs Kabul Chawla (supra) held as under: vii. Completed assessments can be interfered with by the A.O. while making the assessment under section 153A 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 not already disclosed or made known in the course of original assessment 9. The Hon'ble Delhi High Court in its recent decision in the case of Pr. CIT vs. Meeta Gutgutia (2017) 395 ITR 526 in paras 69 to 72 has held as under: 69. What weighed with the Court in the above decision was the habitual concealing of income and indulging in clandestine operations and that a person indulging in such activities can hardly be accepted to maintain meticulous books or records for long. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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