Assessee's appeal allowed, reassessment order quashed as illegal. Delay condoned, other grounds infructuous.

The Tribunal allowed the assessee's appeal, quashing the reassessment order as illegal and void-ab-initio due to abatement of pending proceedings. The delay in filing the appeal was condoned based on reasonable cause. Other grounds of appeal became infructuous following the quashing of the reassessment order.

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Issues Involved:
1. Condonation of delay in filing the appeal.
2. Validity of the assessment order passed u/s 147 r.w.s. 143(3) in light of pending proceedings abating due to search and seizure.
3. Grounds of appeal regarding reassessment, loss from trading in shares/derivatives, and addition of deemed gross profit on alleged suppressed sales.

Summary:

Condonation of Delay:
The assessee filed an appeal with a delay of 30 days, supported by an affidavit explaining the delay due to multiple proceedings at different jurisdictions and locations. The Tribunal, considering the reasonable cause and in the interest of justice, condoned the delay.

Validity of Assessment Order u/s 147 r.w.s. 143(3):
The primary issue was whether the reassessment proceedings u/s 147 initiated by notice dated 22.03.2013, which were pending on the date of search (16.05.2013), stood abated by virtue of the 2nd Proviso to section 153A(1). The Tribunal noted that the reassessment proceedings pending on the date of search merged with the assessment proceedings u/s 153A. Citing the Supreme Court's decision in Pr. CIT vs. Abhisar Buildwell Pvt. Ltd., the Tribunal held that the reassessment order dated 19.02.2014 passed u/s 147 r.w.s. 143(3) was illegal and void-ab-initio due to the abatement of pending proceedings. Consequently, the reassessment order was quashed.

Grounds of Appeal:
Given the quashing of the reassessment order, the Tribunal did not address other grounds of appeal, which became infructuous.

Conclusion:
The appeal of the assessee was allowed, and the reassessment order was quashed as illegal and void-ab-initio. The decision was pronounced in the open court on 24.05.2023.

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