2014 (7) TMI 1035

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....hout appreciating the fact that the additions were made on the basis of seized papers containing unexplained expenditure/investment. 2. That the Ld. CIT(A) has erred in incorrectly applying the provision of decision 153A of the Act which provide the re-assessment of income for any relevant applicable year irrespective of the fact that there has been any relevant new material or not. 3. That the Ld. CIT(A) has erred in incorrectly applying the ratio of decision of Hon'ble High Court of Allahabad in the case of CIT vs. Smt. Shaila Agarwal reported at (2011) 346 ITR 146 where it was applicable with regards to 'abatement' of completed assessments only. 4. That the Ld. CIT(A) has erred in law in deleting the addition without adjudicating on t....

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....ircumstances of the case are totally identical. The AO was not impressed with this argument and he was of the view that only a sum of Rs. 28,11,200 was considered as explained and the balance amount of Rs. 30,13,800 deserves to be added to the income of the assessee. Aggrieved, assessee carried the matter in appeal before the CIT(A) who deleted the additions so made by the Assessing Officer, and, while doing so and inter alia, observed as follows: 7.3 I have considered the above facts of the case and the submission of the Ld. AR filed explaining the peculiar facts and circumstances of the case under which, three assessment orders have been passed for the same assessment year considering the same material and seized documents found during a....

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....ment order could not have abated in the proceeding initiated u/s 153A after second search, unless any fresh material relating to these issues could have been gathered during second search operation but in the impugned assessment order relating to search assessment based on second search operation, the AD has not discussed any material as found during that search operation which could have justified for making of the same addition which had already been made in the assessment order dated 10.12.2010 passed u/s 147/143(3). A circular No.7 of 2003 dated 05.09.2003 has been issued by the CBDT to explain the new procedure of search assessment as contained in section 153A/153C. In this circular, it has been clarified that the appeal, revision or r....

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....iction is ousted and is a "functus officio" as far as the original assessment is concerned. In view of the above decision of Hon'ble Ahmedabad Tribunal and after reading the provisions of second proviso of section 153A along with circular no. 7 of 2003 of CBDT, it is very clear that the concluded issues in a original assessment, which has already been passed on the date of initiation of search & seizure operation u/s 132, cannot be re-agitated in search assessment u/s 153A unless any material relating to such issues has been found during search. The Hon'ble ITAT Kolkata Bench in the case of LMJ International Ltd. Vs. CIT 119 TT J 214 has also held that where nothing incriminating is found in the course of search relating to any ass....