2015 (12) TMI 702
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....he assessee was also covered as on 17.3.2010. For the assessment year 2008- 09, the assessee had filed return under sect ion 139(1) of the Income Tax Act , 1961 ( in shot ' the Act ' ) as on 30.6.2008 showing total income of Rs. 2,14,810/- . In response to notice under sect ion 153A of the Act after the search, the same income was returned by the assessee. After making addition amounting to Rs. 14,95,764/- invoking the provisions of sect ion 14A of the Act read with Rule 8D of the income Tax Rules, the assessment under section 153A of the Act was completed at an income of Rs. 17,10,574/- . 3. The assessee went in appeal before the learned CIT (Appeals) and apart from challenging the merits of the case, also raised a ground relating to the ....
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....d order , the Department has come up in appeal challenging the action of the learned CIT (Appeals) in deleting the disallowance made by the Assessing Officer under sect ion 14A of the Act , while the assessee has filed Cross Object ion challenging the act ion of the learned CIT (Appeals) in dismissing the ground relating to 153A. Since the Cross Object ion involves the legal issue, we adjudicate it first . 5. The learned counsel for the assessee submitted before us that the provisions of sect ion 153A of the Act are very clear that where notice under this sect ion is issued as a result of any search under sect ion 132 of the Act , the assessment or re-assessment , if any, relating to any assessment year falling within the period of six yea....
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....e case of CIT Vs. Kabul Chawla, ITA No.707/2014 ( i i i ) Another order of I .T.A.T. , Mumbai Bench in the case of Gurinder Singh Bawa Vs. DCIT, ITA No.2075/Mum/2010, dated 16.11.2012 7. The learned D.R. rel ied upon the order of the Assessing Officer as well as that of the learned CIT (Appeals) . 8. We have heard the learned representatives of both the parties, perused the findings of the authorities below and considered the material available on record. The undisputed facts of the case are that the original assessment proceedings in this case have not been abated in view of the fact that the assessments have been finalized before the date of search though the same has not been made under sect ion 143(3) of the Act . The time limit f....
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....ccount or other documents relevant to the assessment had not been produced in the course of original assessment and found in the course of search in our humble opinion such books of account or other documents have to be taken into account while making assessment or reassessment of total income under the aforesaid provision. Similar position will obtain in a case where undisclosed income or undisclosed property has been found as a consequence of search. In other words, harmonious interpretation will produce the following results: (a) Insofar as pending assessments are concerned, the jurisdiction to make original assessment and assessment u/s 153A merge into one and only one assessment for each assessment year shall be made separately on t....
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....legal position has been explained by the Court as follows : "37. On a conspectus of Section i53A(i) of the Act, read with the provisos thereto, and in the light of the law explained in the aforementioned decisions, the legal position that emerges is as under: i. Once a search takes place under Section 132 of the Act, notice under Section 153 A (i) will have to be mandatorily issued to the person searched requiring him to file returns for six AYs immediately preceding the previous year relevant to the AY in which the search takes place. ii. Assessments and reassessments pending on the date of the search shall abate. The total income for such AYs will have to be computed by the AOs as a fresh exercise. iii. The AO will exercise nor....
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....arch and any other material existing or brought on the record of the AO. vii. Completed assessments can be interfered with by the AO while making the assessment under Section 153 A only on the basis of some incriminating material unearthed during the course of search or requisition of documents or undisclosed income or property discovered in the course of search which were not produced or not already disclosed or made known in the course of original assessment." 12. The same proposition has been laid down in the case of Murli Agro Products Ltd. (supra) by the Hon'ble Bombay High Court , on which reliance has been placed by the learned counsel for the assessee and also in the case of Shri Gurinder Singh Bawa (supra) by the Mumbai Bench....