TaxTMI 
TaxTMI 
2016 (7) TMI 448
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....izure action was carried on assessee's premises on 20.08.2009 which is a part of Unity Group of companies. The other companies/concerns which were also searched along with the assessee are as under:- 3. During the course of the proceeding under section 153A in the assessee's case, the AO found that the assessee had increased the share capital/share application money by Rs. 1052.24 lacs from 84 different entities. The AO has made enquiries from 33 entities by sending the notices under section 133(6)/131 of the Act for the Assessment Years 2004-05, 2005-06, 2006-07 and 2007-08. S. No. Name of the appellant 1. North Delhi Projects Ltd. 2. Unity Buildwell Projects Ltd. 3. Unity Projects P. Ltd. 4. Unity Town....
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....ion of Rs. 30,00,000/- made by the Assessing Officer on account of unexplained cash credits U/s 68 of the Income tax Act 1961, under the head share application money received by the assessee from different entities. 2. On the facts and in the circumstance of the case, the C1T(A) has erred, in not appreciating in observation of the Assessing Officer on facts of the case that the assessee failed to prove the creditworthiness of the shares applicants as well as genuineness of the transaction within the meaning of section 68 of the Act. 3. The order of the CIT (A) is erroneous and is not tenable on facts and in law. 4. The appellant craves leave to add, alter or amend any/all of the grounds of appeal before or during ....
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....the assessee is germane to the entire assessment proceedings. 10. Before us the Ld. AR for the assessee submitted that it is not the case of the Department that the addition of Rs. 30 lacs has been made on account of any incriminating material found during the course of search and seizure proceedings. It was further submitted by the Ld. AR that as per the second proviso of section 153 A only the assessments which were pending on the date of initiation of search u/s 132 of the Act will abate and the assessment proceedings which have become final as on the date will not stand abated. It was further submitted that no incriminating material was found during the course of search to show that the entries were not genuine. Ld. AR also drew our ....
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....hile under the first proviso, the AO is empowered to frame assessment for six years, under the second proviso only assessments which are pending on the date of initiation of search abate. The effect is that completed assessments do not abate. The assessments can be said to be pending only if the AO is statutorily required to do something further. If the section 143(2) notice has been issued, the assessment can be said to be pending. However, assessment already completed u/s 143(3) cannot be said to be pending. The power given by the first proviso to assess income for six assessment years has to be confined to the undisclosed income unearthed during search and cannot include items which were already before the AO during the course of the ori....
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....ld be strictly made on the basis of evidence found in the course of the search, or other post-search material or information available with the AO which can be related to the evidence found, it does not mean that the assessment "can be arbitrary or made without any relevance or nexus with the seized material. Obviously an assessment has to be made under this Section only on the basis of seized material. v. In absence of 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 proceedin....