2016 (1) TMI 988

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....e orders each dated 30.04.2012 of ld. CIT(A). 2. Since the issues involved are common and the appeals were heard together so these are being disposed off by this consolidated order for the sake of convenience and brevity. 3. First we will deal with the appeal in ITA No. 3078/Del/2012 for the assessment year 2004-05. Following grounds have been raised in this appeal: "1. That the order passed by the Ld. Assessing Officer and confirmed by Ld. CIT(A) is not only bad in law but also against the facts of the case. 2. The Ld. CIT(A) is erred under the law while holding that AO has a valid jurisdiction u/s 153C of the Act particularly in view of following reasons:- i) as the same has been issued beyond the time lim....

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....0 in response to notice u/s 153A of the Act may be treated as having been filed in response to this notice. The AO noticed that the return declaring net taxable income of Rs. 2,47,000/- was filed on 26.07.2010 and that the assessee had raised unsecured loan of Rs. 4,00,000/- from Sh. Sanjeev Kumar Gupta who filed an undated confirmation but no evidence had been filed with regard to the Income Tax Return filed by the said person, the source of the income of the loanee and the source of giving the said loan. The AO treated the unsecured loan amounting to Rs. 4,00,000/- in the name of Sh. Sanjeev Kumar Gupta as unexplained investment of the assessee and added the same to his income. 7. Being aggrieved the assessee carried the matter to the ....

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....l pertaining to the assessee was unearthed during the course of search. The AO had made the additions on account of unsecured loans, the details of which were already available. It is also not brought on record to substantiate that any document pertaining to the loan from Sh. Sanjeev Kumar Gupta was found during the course of search or the assessee concealed any income or furnished inaccurate particulars of income which later on were found during the course of search. On a similar issue the Hon'ble Jurisdictional High Court in the case of CIT Vs Kabul Chawla (supra) has held as under: "37. On a conspectus of Section 153A(1) of the Act, read with the provisos thereto, and in the light of the law explained in the aforementioned decis....

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.... any incriminating material, the completed assessment can be reiterated and the abated assessment or reassessment can be made. The word 'assess' in Section 153 A is relatable to abated proceedings (i.e. those pending on the date of search) and the word 'reassess' to completed assessment proceedings. vi. Insofar as pending assessments are concerned, the jurisdiction to make the original assessment and the assessment under Section 153A merges into one. Only one assessment shall be made separately for each AY on the basis of the findings of the search 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 ....