TMI Blog2023 (5) TMI 917X X X X Extracts X X X X X X X X Extracts X X X X ..... e law that no addition can be made in respect of completed assessment in absence of any incriminating material. The supreme court in laying down the proposition considered the object and purpose of insertion of section 153A of the Act. In view of the above decision of the supreme court in Abhisar Buildwell P. Ltd. [ 2023 (4) TMI 1056 - SUPREME COURT] wherein held that no addition can be made in respect of completed/ unabated assessment in absence of any incriminating material. There is no gainsaying that the issue sought to be raised and the substantial questions of law ought to be put forth in that context, are answered. - R/TAX APPEAL NO. 282 of 2023 - - - Dated:- 5-5-2023 - HONOURABLE MR. JUSTICE N.V. ANJARIA AND HONOURABLE MR. J ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng the order of the CIT(A) on the issue of deletion of the addition made on account of dis-allowance of sale made to group concern of Rs. 1,48,19,000/- during the assessment u/s 153A of the Act by holding that additions have to be confined to the incriminating material found during the course of search u/s 132(1) of the Act, even though, there is no such stipulation in Sec. 153A of the Act ? (iv) Whether the Hon ble Tribunal has erred in law and on facts in upholding the order of the CIT(A) on the issue of deletion of the addition made on account of dis-allowance of under valuation of closing stock of salt of Rs. 8,73,09,636/- during the assessment u/s 153A of the Act by holding that additions have to be confined to the incriminating ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... well as of Rs. 1,48,19,000/- on account of dis-allowance of sale made to group concern, further addition of Rs. 8,73,09,636/- on account of disallowance of under valuation of closing stock of salt, further addition of Rs. 3,21,81,532/- on account of dis-allowance of interest u/s 36(1)(iii) of the Act, further addition of Rs. 3,38,000/- on account of dis-allowance of depreciation on land cost of wind mill was also made. 3.1 The Commissioner of Income Tax (Appeals) passed order dated 28.02.2016 allowing the appeal of the assessee by deleting the additions made in the assessment order. It recorded a finding that no incriminating material was found at the premises of the assessee during search. The Income Tax Appellate Tribunal as per impugn ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rce. 4.1 The supreme court in Abhisar Buildwell P. Ltd. (supra) answered the question as to whether in respect of completed assessment/un-abated assessment, the jurisdiction of the Assessing Officer to make assessment is confined to incriminating material found during the course of search under section 132 of the Act or the requisition under section 132A and whether additions made by the Assessing Officer in absence of any incriminating material found during the search, could be sustained or not. 4.2 The supreme court confirmed the view taken by this court in Principal Commissioner of Income Tax-4 vs. Saumya Construction [(2016) 387 ITR 529 (Gujarat)] well as that of Delhi High Court in Commissioner of Income Tax, Central-II ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion 153A(1) will have to be mandatorily issued to the person searched requiring him to file returns for six AYs immediately preceding the previous year relevant to the AY in which the search takes place. ii. Assessments and reassessments pending on the date of the search shall abate. The total income for such AYs will have to be computed by the AOs as a fresh exercise. iii. The AO will exercise normal assessment powers in respect of the six years previous to the relevant AY in which the search takes place. The AO has the power to assess and reassess the total income of the aforementioned six years in separate assessment orders for each of the six years. In other words, there will be only one assessment order in respect of eac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the course of search which were not produced or not already disclosed or made known in the course of original assessment. 4.5 The decision of Saumya Construction (supra) of Gujarat High Court was also quoted for its paragraph Nos. 15 and 6 to held that the case of completed assessment/unabated assessment in absence of any incriminating material will not permit making of addition by the Assessing Officer and that the Assessing Officer has no jurisdiction to reopen the completed assessment. 5. Finally, the supreme court confirmed the view taken by the Delhi High court in Kabul Chawla (supra and of this Court in Saumya Construction (supra laying down the law that no addition can be made in respect of completed assessment in absence o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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