TMI Blog2024 (2) TMI 340X X X X Extracts X X X X X X X X Extracts X X X X ..... n so proceeding with the assessment, AO would be entitled to reckon both disclosed and undisclosed income of the assessee. Insofar as completed assessment, they do not abate and for the purpose of re-assessing, there should be some incriminating material disclosed in the search, which alone can lead to reopening of the proceedings on the basis of the seized material, which has some relevance or nexus to the allegation of undisclosed income. The assessee s assessment for the relevant year stood completed as on 06.06.2003 long before the search and consequent proceeding initiated u/s 153A and there is no question arising of the relevant assessment to abate under the second proviso to Section 153A. Tribunal was perfectly within the statutor ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o assessment proceedings were pending as on the date of initiation of proceedings under Section 153A? 3. In the assessment year 2002-03, the original assessment of the assessee was completed under Section 143(3) of the Act on 06.06.2003. This was subsequently set aside by the 1st Appellate Authority under Section 263 of the Act by order dated 24.11.2004; in which there was a remand back to the Assessing Officer for carrying out a fresh assessment. On 15.12.2004, a search was conducted in the premises of the assessee under Section 132(1) of the Act. Section 153A proceeding was initiated in pursuance of the search conducted. 4. The assessee contended before the Assessing Officer that there was no assessment pending as on the date of se ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f Delhi in Commissioner of Income Tax v. Kabul Chawla; [2016] 380 ITR 573 (Delhi) , which has been affirmed by the Hon ble Supreme Court in Principal Commissioner of Income-Tax v. Abhisar Buildwell P. Ltd.; [2023] 454 ITR 212(SC) . The principle insofar as assessment and re-assessment under Section 153A was summarised by the High Court of Delhi, as follows:- Summary of the legal position On a conspectus of section 153A(1) of the Act, read with the provisos thereto, and in the light of the law explained in the aforementioned decisions, the legal position that emerges is as under: (i) Once a search takes place under section 132 of the Act, notice under section 153A(1) will have to be mandatorily issued to the person searched requi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssment can be made. The word assess in section 153A is relatable to abated proceedings (i.e., those pending on the date of search) and the word reassess to the completed assessment proceedings. (vi) In so far as the pending assessments are concerned, the jurisdiction to make the original assessment and the assessment under section 153A merges into one. Only one assessment shall be made separately for each assessment year on the basis of the findings of the search and any other material existing or brought on the record of the Assessing Officer. (vii) Completed assessments can be interfered with by the Assessing Officer while making the assessment under section 153A only on the basis of some incriminating material unearthed during ..... X X X X Extracts X X X X X X X X Extracts X X X X
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