TaxTMI 
TaxTMI 
2016 (3) TMI 1057
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....sessment was framed u/s.143(3) r.w.s. 153A of the Act vide order dated 21.12.2010 and the total income was determined at Rs. 1,99,02,409/-. Aggrieved by the order of Assessing Officer, Assessee carried the matter before the ld. CIT(A) who vide order dated 03.06.2011 dismissed the appeal of the assessee. Aggrieved by the order of ld. CIT(A), Assessee is now in appeal before us and has raised following grounds: "1. Ld. CIT (A) has erred in law in confirming the action of AO in framing assessment by invoking the provisions of section 153A of the Act that is bad in law. Ld. CIT (A) ought to have quashed the impugned assessment order since no income could have been taxed u/s 153A of the Act. 2. Ld. CIT (A) has erred in law in and on facts in not appreciating that even the assessment u/s 153A of the Act is restricted to the materials and evidences found during the course of the search and the same cannot go beyond the same. In the facts of the present case, all the additions which are made are very much part of the disclosed income of the appellant. 3. The ld. CIT(A) has erred in law and on the facts in not appreciating that provisions of S. 2(22)(e) of the Act....
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....sessing Officer while framing assessment orders u/s.153A only on the basis of some incriminating materials unearthed during search and in absence of any incriminating material no assessment can be framed u/s.153A and for the aforesaid proposition, he placed reliance on the decision of Hon'ble Delhi High Court in the case of CIT vs. Kabul Chawla (2015) 61 taxmann.com 412 (Del) and the decision of Ahmedabad Tribunal in case of Intas Pharmaceuticals Ltd. vs. DCIT in IT(SS)A Nos. 807-809/Ahd/2010. He also placed on record the copy of the aforesaid decisions. He, therefore, submitted that the assessment framed u/s.153A needs to be quashed. 4.2 With respect to Ground no.3 to 7 on the merits of addition which are with respect to addition u/s.2(22)(e), he submitted that assessee had received loan of Rs. 1,99,02,409/- from Jupiter Corporate Services Ltd. and Assessing Officer noted that Shri Vijaykumar D. Gupta was a common shareholder in assessee company as well as Jupiter Corporate Service Ltd. and he was therefore of the view that provisions of Section 2(22)(e) were applicable. He accordingly treated the amount received by the assessee as deemed dividend u/s. 2(22)(e) of the Act. Befo....
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....sing Officer retains the original jurisdiction as well as the one conferred on him u/s.153A for which assessments shall be made for each of the six assessment years separately. The Special Bench thereafter comes to non abated i.e. assessments which are not pending as per above said 2nd provision and holds that the assessment therein u/s.153A will be made on the basis of books of account or other documents not produced in the course of original assessment but found in the course of search and undisclosed income or property discovered in the course of search. This is not the Revenue's case; or for that no such material is placed on record that the search in question unearthed any such undisclosed material in assessee's case. We are inferring in these facts that there does not exist any such material not produced in the course of regular assessment but found in search. Parties inform us very fairly that hon'ble jurisdictional high court has not adjudicated this question. In these facts, we observe that the Special bench's decision squarely covers the assessee's case. The hon'ble Bombay high court (supra) affirms the said decision by holding that the same does not suffer from any infir....
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....ith 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 153A(1) 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 normal assessment powers in respect of the six years previous to the relevant AY in which the search takes place. The AO has the power to assess and reassess the 'total income' of the aforementioned six years in separate assessment orders for each of the six years. In other words there will be only one assessment order in respect of each of the six AYs "in which both the disclosed and the undisclosed income would be brought to tax". iv. Although Section 153A does not say that additions should be strictly made on the basis of evidence ....