TaxTMI 
TaxTMI 
2014 (2) TMI 731
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....al with the issue raised, it will be appropriate to give a brief background of the case. The facts in brief are that the assessee for the assessment year 2005-06 had filed return of income on 18.08.2005 declaring total income of Rs. 9,61,000/-. Subsequently, there was a search conducted in case of the assessee and its family members under section 132 of the Act on 5.1.2007. Consequent to the search, assessment proceedings were initiated under section 153A of the Act. The AO during the assessment proceedings for assessment year 2005-06 found that the assessee had credited sum of Rs. 93,72,310/- to his capital account with narration receipts towards gifts. Assessee gave details of activity as under:- i. Premkumar (mother-in-law) - Rs....
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.... the additions made by AO under section 68 of the Act in relation to the loan taken by the assessee. CIT(A) did not accept the plea that the amount was not loan but a business transaction on commercial expediency. He however accepted that the current year profit could not be taken as accumulated profit and after excluding current year profit, accumulated profit was nil. The addition as deemed dividend has to be limited to accumulated profit and since accumulated profit was nil, CIT(A) deleted the addition made on account of deemed dividend. Aggrieved by the decision of CIT(A) both parties are in appeal. Whereas the assessee has challenged the legal validity of addition made under section 153A in addition to challenging merit of additions un....
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....sclosed income found. Section 153A is activated once there is search irrespective of the fact whether any incriminating material showing any undisclosed income is found or not. The AO under section 153A had power to assess or reassess income. Therefore, even in cases where assessment had been made and were not pending, AO had power to reassess the income. CIT(A) further observed that the concept of undisclosed income based on material found was relevant to the scheme of block assessment which had been done away with and new provisions of section 153A were introduced. Therefore, whether any undisclosed income is found during search or not the AO had power to assess or reassess total income for six immediate preceding years. CIT(A), therefore....
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.... Act and on the order of AO in relation to addition on account of deemed dividend. 6. We have perused the records and considered the rival contentions carefully. The dispute raised is regarding legal validity of addition made by AO under section 153A of the Act. Under the provisions of section 153A, in all cases, where search is conducted under section 132 of the Act, AO is empowered to assess or reassess total income of six assessment years preceding the assessment year in which search was conducted. The section also provides that assessment or reassessment relating to any assessment year falling within period of six assessment year if pending on the date of initiation of search shall abate. There have been divergent views regarding sco....
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.... shall be made for each assessment year separately. Thus in case where assessment has abated the AO can make additions in the assessment, even if no incriminating material has been found. But in other cases the Special Bench held that the assessment under section 153A can be made on the basis of incriminating material which in the context of relevant provisions means books of account and other documents found in the course of search but not produced in the course of original assessment and undisclosed income or property disclosed during the course of search. In the present case, the assessment had been completed under summary scheme under section 143(1) and time limit for issue of notice under section 143(2) had expired on the date of searc....