TaxTMI 
TaxTMI 
2016 (8) TMI 312
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....he above issues emerge from the fact that a search and seizure 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 appellant are as under:- S. No. Name of the appellant 1. North Delhi Projects Ltd. 2. Unity Buildwell Projects Ltd. 3. Unity Projects P. Ltd. 4. Unity Township P. Ltd. 5. Prestige Buildwell P. Ltd. 6. Sankalp Agencies P. Ltd. 7. Aggarwal Tower P. Ltd. 8. Agarwal Entertainment P. Ltd. 9. New Horizon Buildwell P. Ltd. 10. Fun City Developers P. Ltd. 11. Mittaso Projects P. Ltd. 12. Aggarwal Plaza P. Ltd. 3. During the co....
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....count of unexplained cash credits under the head share application money received. 2. On the facts and in the circumstance of the case, the C1T(A) has erred, in deleting this addition and ignoring the facts that the assessee had failed to prove the creditworthiness of the share applicants as well as genuineness of the transaction within the meaning of section 68 of the Act. 2. The order of the CIT (A) is erroneous and is not tenable on facts and in law. 3. The appellant craves leave to add, alter or amend any/all of the grounds of appeal before or during the course of the hearing of the appeal." 6. In the CO, the assessee has raised the following grounds:- "1. That on the facts and circumstances of the case, the Commissioner ....
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....essee as the legal issue raised by the assessee is germane to the entire assessment proceedings. 8. Before us the Ld. AR for the assessee submitted that it is not the case of the Department that the addition of Rs. 50 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 ....
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....ed u/s 143 (1) of the Act and that no material has been found during the search to justify the addition. In our considered opinion section 153A does not authorise the making of a de novo assessment in this particular assessment year. While 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 the assessment in respect of a return processed u/s 143(1) is not pend....
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....spect 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 153 A does not say that additions should 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 ....