TaxTMI 
TaxTMI 
2017 (1) TMI 320
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....in respect of the year 2013-14 are not pending as on date. A raid was conducted in the office and in the business premises as well as at the residence of the directors of the Company on 27.02.2015 and certain documents and books of accounts were seized by the respondents and pursuant to the raid, a notice under Section 153(A) dated 18.09.2015 was served to the petitioner with a direction to prepare and submit true and correct return of income for the assessment year 2013-14. Petitioner's contention is that in light of the Income Tax Act, when notice has been issued under Section 153A on 18.09.2015, the earlier self assessment tax return submitted by the petitioner stands abated, therefore, petitioner is not liable to pay any tax to the respondent. It is pertinent to note that petitioner has not paid outstanding tax in respect of the order passed earlier and thereafter, notice was issued to the petitioner informing outstanding tax under Section 143(3) and 143(1) of the Income Tax Act and the petitioner was directed to show the cause as to why the prosecution under Section 276C(2) of the Income Tax Act may not be initiated. Petitioner did submit a reply and thereafter....
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....section 149, section 151 and section 153, in the case of a person where a search is initiated under section 132 or books of account, other documents or any assets are requisitioned under section 132A after the 31st day of May, 2003, the Assessing Officer shall : (a) issue notice to such person requiring him to furnish within such period, as may be specified in the notice, the return of income in respect of each assessment year falling within six assessment years referred to in clause (b), in the prescribed form and verified in the prescribed manner and setting forth such other particulars as may be prescribed and the provisions of this Act shall, so far as may be, apply accordingly as if such return were a return required to be furnished under section 139; (b) assess or reassess the total income of six assessment years immediately preceding the assessment year relevant to the previous year in which such search is conducted or requisition is made : Provided that the Assessing Officer shall assess or reassess the total income in respect of each assessment year falling within such six assessment years: Provided further that assessment or reassessmen....
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.... that if any of the aforesaid six assessments is pending on the date of initiation of the search or making of requisition, the same shall abate. In the present case, assessment in question is not pending. Complaint has been filed as a consequence upon non-deposition of tax. Not only this, a circular has been issued i.e. Circular No.7 of 2003 dated 06.09.2003 by the Commissioner, Income Tax clarifying the position. Allhabad High Court in the case of CIT vs. Shaila Agrawal, reported in 2004 Taxman, 276, has taken care of the aforesaid grounds raised by the petitioner. The Division Bench of Allahabad High Court in paragraph Nos.10 to 20 has held as under:- "10. Shri Bharat Ji Agarwal submits that the order of the Income Tax Appellate Tribunal is not acceptable as it is not in accordance with the provisions of the Act. A plain reading of the second proviso of Section 153A of the Act would show that only the assessment pending on the date of initiation of the search shall abate. 11. The second proviso of Section 153A reads as under: Provided further that assessment or reassessment, if any, relating to any assessment year falling within the period of six ....
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....3)(b)(i), Specific Relief Act (47 of 1963)]. Of An Action Or Suit: In civil law an abatement of a suit is a complete termination of it. Abatement of a matter or cause is caused by the same becoming defective on account of the death of the parties materially interested. (Ency. of the Laws of England) A suspension or termination of proceedings for want of proper parties or due to some technical defect. The abatement of the main action abates proceedings ancillary or collateral to it. In Criminal Law: Abatement of proceedings connotes their termination without any decision on merits and without the assent of the prosecutor. (Ency. of the Laws of England) In Revenue Law: Abatement is a deduction from or refunding of duties on goods damaged during importation or in store. The word 'abatement' is referable to something, which is pending alive, or is subject to deduction. The abatement refers to suspension or termination of the proceedings either of the main action, or the proceedings ancillary or collateral to it. The word is commonly used in the legislations, which provide for abatement of action/ suit; abatement of legacies;....
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....ision or rectification proceedings pending on the date of initiation of search under section 132 or requisition shall not abate. Save as otherwise provided in the proposed section 153A, section 153B and section 153C, all other provisions of this Act shall apply to the assessment or reassessment made under section 153A. It i also clarified that assessment or reassessment made under section 153A shall be subject to interest, penalty and prosecution, if applicable. In the assessment or reassessment made in respect of an assessment year under this section, the tax shall be chargeable at the rate or rates as applicable to such assessment year. 18. In State of Rajasthan & Ors. v. Khandaka Jain Jewellers, MANU/SC/4214/2007 : (2007) 14 SCC 339 the Supreme Court reiterating the principles of interpretation of taxing statutes held in para 24 as follows: A taxing statute has to be construed as it is all these contingencies that the matter was under litigation and the value of the property by that time shot up cannot be taken into account for interpreting the provisions of a taxing statute. As already mentioned above a taxing statute has to be construed strictly and if it is ....