TMI Blog2023 (11) TMI 944X X X X Extracts X X X X X X X X Extracts X X X X ..... As decided in Kabul Chawla case [ 2015 (9) TMI 80 - DELHI HIGH COURT] no addition can be made in respect of completed assessment in absence of any incriminating material Assessing Officer gets jurisdiction to assess or re-assess the total income in respect of each assessment year falling within six assessment years. As per the proviso s, if any assessment or re-assessment is pending on the date of initiation of the search for making requisition under Section 132A of the Act, as the case may be, shall abate. It was thus held that the intention of the legislature was that in the case of a search, only the pending assessment/ re-assessment proceedings shall abate and the Assessing Officer could assess or re-assess for the entire set of 6 years for the period/block assessment period until any incriminating material was found. The intention could not be given to reopen the completed unabated assessment. Thus we are of the considered opinion that no question of law arises in the present set of appeals in view of the fact that the same has been settled by the Apex Court and a factual finding was recorded which has not been rebutted by counsel for the appellant . ITAT was right in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... date of the search, the additions cannot be made. It was also noticed that the departmental representative of the Revenue had been fair enough to admit the said fact and that the original assessment proceedings stood completed on the date of the search. It was noticed that a distinction had been made by the High Court in Smt.Dayawanti Vs. CIT others 2017 (390) ITR 496 and keeping in view the fact that the said position has further been discussed in Principal Comissioner of Income Tax Central- 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 int ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ourt in Kabul Chawla (supra) and the Gujarat High Court in Principal Commissioner of Income Tax-4 Vs. Saumya Construction, (2016) 387 ITR 529 was approved by holding as under: 8. For the reasons stated hereinbelow, we are in complete agreement with the view taken by the Delhi High Court in the case of Kabul Chawla (supra) and the Gujarat High Court in the case of Saumya Construction (supra), taking the view that no addition can be made in respect of completed assessment in absence of any incriminating material. 7. It was accordingly noticed that the Assessing Officer gets jurisdiction to assess or re-assess the total income in respect of each assessment year falling within six assessment years. As per the proviso s, if any assessment or re-assessment is pending on the date of initiation of the search for making requisition under Section 132A of the Act, as the case may be, shall abate. It was thus held that the intention of the legislature was that in the case of a search, only the pending assessment/ re-assessment proceedings shall abate and the Assessing Officer could assess or re-assess for the entire set of 6 years for the period/block assessment period until any inc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed/unabated assessment, the only remedy available to the Revenue would 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 can assess or reassess the income/total income taking into consideration the other material is accepted, in that case, there will be two assessment orders, which shall not be permissible under the law. At the cost of repetition, it is observed that the assessment under Section 153A of the Act is linked with the search and requisition under Sections 132 and 132A of the Act. The o ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
