TaxTMI 
TaxTMI 
TaxTMI 
2014 (12) TMI 472
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....ting documents seized in that case. However, notices under section 153C were issued for six Assessment Years in assessee's case. In the consequential proceedings, A.O. disallowed items which are claimed in the P & L account like contribution to P.F. prior period expenses, bad debts written off etc., and made additions. Assessee inter alia, contested the issue of jurisdiction before the Ld. CIT(A) apart from contesting various additions made. It was the contention of assessee that once assessment order has been passed under section 143(3), without there being any incriminating information or material, proceedings under section 153C cannot be initiated and further issues which are already settled in earlier assessment proceedings can not be reagitated or disallowed. Assessee relied on the decision of ITAT Special Bench in the case of All Cargo Global Logistics Ltd., vs. DCIT (2012) 137 ITD 287 (Mum.) (SB). It was further submitted that A.O. ought to have appreciated the fact that no incriminating material/seized material was found during the course of search in order to make additions to the returned income. Ld. CIT(A) perusing the submissions of assessee, judicial principles and als....
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....g the assessment year relevant to the previous year in which search is conducted or requisition is made except in cases where any assessment or reassessment has abated.] [(2) Where books of account or documents or assets seized or requisitioned as referred to in sub-section (1) has or have been received by the Assessing Officer having jurisdiction over such other person after the due date for furnishing the return of income for the assessment year relevant to the previous year in which search is conducted under section 132 or requisition is made under section 132A and in respect of such assessment year (a) no return of income has been furnished by such other person and no notice under sub-section (1) of section 142 has been issued to him, or (b) a return of income has been furnished by such other person but no notice under sub-section (2) of section 143 has been served and limitation of serving the notice under sub-section (2) of section 143 has expired, or (c) assessment or reassessment, if any, has been made, before the date of receiving the books of account or documents or assets seized or requisitioned by the Assessing Officer having jurisdiction over such other person, suc....
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....earch, the assessing officer cannot make any addition on issues which have already been concluded even when the assessments were reopened by virtue of provisions of Sec. 153A. In such cases, the assessing officer has to complete such assessments without making any further addition. Hence, the second issue urged before us is answered in favour of the assessee." (iii) A similar view was taken by the Hon'ble ITAT, Hyderabad, in the case of Platina Properties Projects Ltd in ITA No. 1622, 1623, 573 to 576/Hyd/2008. The relevant portion of the order runs as under: " .... the present assessment is made u/s. 143(3) r.w.s. 153A r.w.s. 153C of the Act. The second proviso of sub section 1 to section 153A provides that if assessment for any of the assessment year falling within a period of 6 years mentioned in clause (b) of Section 153A(1) is pending on the date of search, it shall abate. The present assessment year is 1999- 2000 which is falling within the period of 6 years but its assessment is complete and hence the proceedings do not abate. In other words the original assessment was made u/s. 143(3) has become final and is not affected by the second proviso to section 153A. Of cours....
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....ase of Jai Steels (P) Ltd Vs. CIT (supra), it has been held that, it is not open for assessee to seek deduction or claim expenditure which has not been claimed in original assessment, which already stands completed only because an assessment under section 153A/153C of the Act, in pursuance of search or requisition, is required to be made. Vide the above discussion and decided case laws, it has been decided that jurisdiction in search cases is two way; i) one in case of concluded assessment, whether under section 143(3) or 143( 1), where date of issue of notice u/s. 143(2) has expired and ii) the other in respect of pending assessment which abates consequent to search. In case of the former, the jurisdiction to assess is limited to incriminating material and in other cases the assessing officer has unfettered jurisdiction to make assessment both by exercising his normal jurisdiction to make assessment both by exercising his normal jurisdiction and also by utilising the incriminating material/evidence. 4.9. Coming to the facts of the case, the assessments for the assessment years 2003-04, 2004-05, 2005-06, 2006-07, 07-08 and 2008-09 were unabated and treated to have been concluded.....