TaxTMI 
TaxTMI 
TaxTMI 
2014 (10) TMI 255
X X X X Extracts X X X X
X X X X Extracts X X X X
.... of Income-tax, Kanpur, under section 127 of the Act. Notice under section 153A of the Act was issued and, thereafter, notice under sections 143(2) and 142(1) was issued and served upon the assessee. In compliance with the above notices, the assessee intimated the Assessing Officer stating therein that regular return of income filed under section 139 of the Act may be treated to be filed in compliance with the notice under section 153A of the Act. During the course of assessment proceedings under section 153A of the Act, the Assessing Officer found that the gift received by the minor children from various persons was a sham transaction and the assessee failed to prove the genuineness of these gifts. The Assessing Officer, accordingly, made an addition in this regard while completing the assessment under section 153A of the Act. Aggrieved by the order of the Assessing Officer, the assessee filed an appeal before the Commissioner of Income-tax (Appeals)-I, Kanpur, who allowed the appeal of the assessee on the ground that the transaction of gift had taken place through banking channel where date, mode of payment and other details was duly recorded. The gift deed was also available w....
X X X X Extracts X X X X
X X X X Extracts X X X X
....search or requisition.- 153A (1) Notwithstanding anything contained in section 139, section 147, section 148, section 149, section 151 and section 153, in the case of a person where a search is initiated under section 132 or books of account, other documents or any assets are requisitioned under section 132A after the 31st day of May, 2003, the Assessing Officer shall (a) issue notice to such person requiring him to furnish within such period, as may be specified in the notice, the return of income in respect of each assessment year falling within six assessment years referred to in clause (b), in the prescribed form and verified in the prescribed manner and setting forth such other particulars as may be prescribed and the provisions of this Act shall, so far as may be, apply accordingly as if such return were a return required to be furnished under section 139 ; (b) assess or reassess the total income of six assessment years immediately preceding the assessment year relevant to the previous year in which such search is conducted or requisition is made : Provided that the Assessing Officer shall assess or reassess the total income in respect of each assessment year falling wi....
X X X X Extracts X X X X
X X X X Extracts X X X X
....B provide for a single assessment of undisclosed income of a block period, which means the period comprising previous years relevant to six assessment years preceding the previous year in which the search was conducted and also includes the period up to the date of the commencement of such search, and lay down the manner in which such income is to be computed. 65.2 The Finance Act, 2003, has provided that the provisions of this Chapter shall not apply where a search is initiated under section 132, or books of account, other documents or any assets are requisitioned under section 132A after May 31, 2003, by inserting a new section 158BI in the Income-tax Act. 65.3 Further, three new sections 153A, 153B and 153C have been inserted in the Income-tax Act to provide for assessment in case of search or making requisition. 65.4 The new section 153A provides the procedure for completion of assessment where a search is initiated under section 132 or books of account, or other documents or any assets are requisitioned under section 132A after May 31, 2003. In such cases, the Assessing Officer shall issue notice to such person requiring him to furnish, within such period as may be speci....
X X X X Extracts X X X X
X X X X Extracts X X X X
....he period commencing from the day on which the Assessing Officer directs the assessee to get his accounts audited under sub-section (2A) of section 142 and ending on the day on which the assessee is required to furnish a report of such audit under that sub-section, or the time taken in reopening the whole or any part of the proceeding or giving an opportunity to the assessee of being re-heard under the proviso to section 129, or in a case where an application made before the Settlement Commission under section 245C is rejected by it or is not allowed to be proceeded with by it, the period commencing on the date on which such application is made and ending with the date on which the order under sub-section (1) of section 245D is received by the Commissioner under sub-section (2) of that section, shall be excluded. If, after the exclusion of the aforesaid period, the period of limitation available to the Assessing Officer for making an order of assessment or reassessment, as the case may be, is less than sixty days, such remaining period shall be extended to sixty days and the period of limitation shall be deemed to be extended accordingly. 65.9 The new section 153C provides that w....
X X X X Extracts X X X X
X X X X Extracts X X X X
....s. Under the block assessment proceeding under Chapter XIV-B only the undisclosed income found during the search and seizure operation were required to be assessed and the regular assessment proceedings were preserved. The introduction of section 153A of the Act provides a departure from this proceeding. Under section 153A of the Act, the Assessing Officer has been given the power to assess or reassess the total income of the assessment years in question in separate assessment orders. Consequently, there would be only one assessment order in respect of six assessment years in which the total disclosed or undisclosed income would be brought to tax. Consequently, even though an assessment order has been passed under section 143(1)(a) or under section 143(3) of the Act, the Assessing Officer would be required to reopen these proceedings and reassess the total income taking notice of undisclosed income even found during the search and seizure operation. The fetter imposed upon the Assessing Officer under sections 147 and 148 of the Act have been removed by the non obstante clause under section 153A of the Act. Consequently, we are of the opinion that in cases where the assessment or ....