Appeal allowed on jurisdictional grounds due to invalid notice, assessment upheld for search year.

The Tribunal allowed the appeal on jurisdictional grounds, finding the assessment void due to the absence of a valid notice under Section 143(2) before completion. The assessment under Section 153A was upheld for the search year, rejecting the appellant's arguments. The additions to income and other issues raised were not addressed on their merits due to the procedural invalidity of the assessment.

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Issues Involved:
1. Validity of assessment under Section 143(3) based on notice under Section 153A.
2. Issuance of notice under Section 143(2) within the prescribed time.
3. Assessment under Section 143(3) versus Section 153A.
4. Violation of principles of natural justice.
5. Additions to returned income post search.
6. Addition based on statement recorded under Section 132(4).
7. Addition on account of unexplained jewellery.
8. Addition on account of unaccounted marriage expenses.

Detailed Analysis:

1. Validity of Assessment under Section 143(3) Based on Notice under Section 153A:
The appellant argued that the assessment year 2011-12, being the search year, should not be assessed under Section 153A. The Tribunal referenced the Indore Bench of ITAT in Susheei Kumar Jain, which clarified that the assessment for the year of search should be completed under Section 153A read with Section 153B. The Tribunal upheld the assessment under Section 153A, rejecting the appellant's contention.

2. Issuance of Notice under Section 143(2) within the Prescribed Time:
The appellant contended that no notice under Section 143(2) was issued within six months from the end of the financial year in which the return was filed, rendering the assessment void. The Tribunal noted that despite several opportunities, the Department failed to produce evidence of such notice. The Tribunal relied on judicial precedents, including CIT v. Lakshman Das Khandelwal and ACIT v. Hotel Blue Moon, which mandate the issuance of notice under Section 143(2) for a valid assessment. The absence of such notice invalidated the assessment.

3. Assessment under Section 143(3) versus Section 153A:
The appellant argued that the assessment should be under Section 143(3) rather than Section 153A. The Tribunal, referencing the Indore Bench decision, concluded that the assessment for the search year should be under Section 153A, aligning with the statutory provisions.

4. Violation of Principles of Natural Justice:
The appellant claimed that the assessment was completed without proper opportunity, violating natural justice principles. The Tribunal did not specifically address this issue, as the assessment was invalidated on other grounds.

5. Additions to Returned Income Post Search:
The appellant argued that the additions were unwarranted as the income was already disclosed. The Tribunal did not delve into the merits of the additions, focusing instead on the procedural validity of the assessment.

6. Addition Based on Statement Recorded under Section 132(4):
The appellant contested the addition of Rs. 9,30,00,000 based solely on a statement without corroborative evidence. The Tribunal did not address this issue separately, given the assessment's procedural invalidity.

7. Addition on Account of Unexplained Jewellery:
The appellant challenged the addition of Rs. 22,05,147 for unexplained jewellery. The Tribunal did not specifically address this issue due to the overarching procedural invalidity.

8. Addition on Account of Unaccounted Marriage Expenses:
The appellant disputed the addition of Rs. 31,18,767 for unaccounted marriage expenses. Again, the Tribunal did not specifically address this issue, as the assessment was invalidated on procedural grounds.

Conclusion:
The Tribunal concluded that the assessment order was void due to the absence of a valid notice under Section 143(2) before the completion of the assessment. Consequently, the appeal was allowed on jurisdictional grounds, and the merits of the case were not discussed. The order was pronounced in the open court on 19-10-2022.

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