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TMI Blog2023 (11) TMI 944X X X X Extracts X X X X X X X X Extracts X X X X ..... -09 and 2009-10. 2. The following substantial questions of law are sought to be raised in the present set of appeals: "i) Whether on the facts and in the circumstances of the case and in law the Hon'ble ITAT was right in concluding that there was a difference in scope of proceedings under section 153A of the Income Tax Act, 1961 for an abated assessment and for a completed assessment. ii) Whether on the facts and in the circumstances of the case and in law the Hon'ble ITAT was right in holding that no addition can be made u/s 153A in respect of completed assessment if no incriminating material is found during search. iii) Whether there is any restriction on the powers of the Assessing officer under section 153A of the Income Tax Ac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2 New Delhi Vs. Meeta Gutgutia Prop. M/s Ferns 'N' Petals, 2017 (395) ITR 526, the Tribunal did not interfere in the findings recorded. 4. We have gone through the paperbook and perused the order of the Appellate Authority also. The said authority had decided the issue purely on legal grounds regarding the jurisdiction of the Assessing Officer to make the assessment under Section 153A of the Act on the ground that no incriminating material was found during the search which was against the respondent. In such circumstances, the additions which had been made by the Assessing Officer vide his order dated 25.03.2015 (Annexure A-1) that the unaccounted black money of the Steel Strips Group into the regular books of accounts in the form of share ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... und during the search, and make an assessment of 'total income'. Some of the High Courts have agreed with the said proposition. However, according to the respective assessees and as per some of the High Courts' decisions, if no assessment proceeding is pending on the date of initiation of the search, the AO may consider only the incriminating material found during the search and is precluded from considering any other material derived from any other source." 6. After considering the provisions of Section 153-A of the Act and the judgments which were also considered by the Tribunal including Meeta Gutgutia (supra), it was noticed that only the Allahabad High Court in the case of Principal Commissioner of Income Tax Vs. Mehndipur Balaji, (2 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... der Section 132 or requisition under Section 132A, the AO gets the jurisdiction to assess or reassess the 'total income' in respect of each assessment year falling within six assessment years. However, it is required to be noted that as per the second proviso to Section 153A, the assessment or re-assessment, if any, relating to any assessment year falling within the period of six assessment years pending on the date of initiation of the search under Section 132 or making of requisition under Section 132A, as the case may be, shall abate. As per sub-section (2) of Section 153A, if any proceeding initiated or any order of assessment or reassessment made under sub-section (1) has been annulled in appeal or any other legal proceeding, then, not ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ould be to initiate the reassessment proceedings under sections 147/48 of the Act, subject to fulfilment of the conditions mentioned in sections 147/148, as in such a situation, the Revenue cannot be left with no remedy. Therefore, even in case of block assessment under section 153A and in case of unabated/completed assessment and in case no incriminating material is found during the search, the power of the Revenue to have the reassessment under sections 147/148 of the Act has to be saved, otherwise the Revenue would be left without remedy. 12. If the submission on behalf of the Revenue that in case of search even where no incriminating material is found during the course of search, even in case of unabated/completed assessment, the AO ..... X X X X Extracts X X X X X X X X Extracts X X X X
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