TaxTMI 
TaxTMI 
2017 (2) TMI 862
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....rder. 2.00. Feeling aggrieved and dissatisfied with the impugned common judgement and order passed by the learned Income Tax Appellate Tribunal, Ahmedabad (hereinafter referred to as "the learned tribunal") in I.T.A. Nos.371/AHD/2011, 372/AHD/2011 and 373/AHD/2011 and Cross Objection No.125 of 2011, by which the learned tribunal has partly allowed the said appeals preferred by the common assessee and has deleted the additions made by the A.O., made under section 153(A) of the Income Tax Act, 1961 for the A.Ys. 2000-2001 to 2004-2005, revenue has preferred present Tax Appeals with the following proposed questions of law :- "[a] Whether on the facts and in the circumstances of the case, the Appellate Tribunal is right in law in narrowin....
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.... 153(A) read with section 143(3) of the Act for the A.Ys. 2000-2001 to 2004-2005. 3.03. That the A.O. made additions under section 153(A) of the Act on the basis of incriminating materials found / recovered at the time of search. 3.04. Feeling aggrieved and dissatisfied with the additions made by the A.O. under section 153(A) on the basis of incriminating material found during the search operation conducted on 10/2/2006, the assessee preferred appeals before the learned C.I.T.(A). And the learned C.I.T.(A). dismissed the appeals preferred by the assessee and confirmed the additions made by the A.O. under section 153(A) of the Act. 3.05. Feeling aggrieved and dissatisfied with the impugned order passed by the learned C.I.T.(A). conf....
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.... incriminating material found during the search, on the ground that under section 153(A) of the Act in respect of undisclosed income and undisclosed assets detected during the search could be brought to tax. In support of the above, the learned tribunal has heavily relied upon the decision of the Delhi High Court in the case of Kabul Chawla (supra). 4.01. Identical question came to be considered by the Division Bench of this Court in the case of Principal Commissioner of Income Tax-2 Versus Jay Infrastructure and Properties Pvt. Ltd. rendered in Tax Appeal No. 740 of 2016 and considering the earlier decision of the Division Bench in the case of Principal Commissioner of Income Tax -4 vs. Saumya Construction Pvt. Ltd. rendered in Tax Appe....
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.... the Act seeks to assess the total income for the assessment year, which is clear from the first proviso thereto which provides that the Assessing Officer shall assess or reassess the total income in respect of each assessment year falling within such six assessment years. The second proviso makes the intention of the legislature clear as the same provides that assessment or reassessment, if any, relating to the six assessment years referred to in the sub-section pending on the date of initiation of search under section 132 or requisition under section 132A, as the case may be, shall abate. Sub-section (2) of section 153A of the Act provides that if any proceeding or any order of assessment or reassessment made under sub-section (1) is annu....
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....equisition. In other words, the assessment should be connected with something found during the search or requisition, viz., incriminating material which reveals undisclosed income. Thus, while in view of the mandate of subsection (1) of section 153A of the Act, in every case where there is a search or requisition, the Assessing Officer is obliged to issue notice to such person to furnish returns of income for the six years preceding the assessment year relevant to the previous year in which the search is conducted or requisition is made, any addition or disallowance can be made only on the basis of material collected during the search or requisition. In case no incriminating material is found, as held by the Rajasthan High Court in the case....
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....o addition or disallowance can be made in relation to that assessment year in exercise of powers under section 153A of the Act and the earlier assessment shall have to be reiterated. In this regard, this court is in complete agreement with the view adopted by the Rajasthan High Court in the case of Jai Steel (India), Jodhpur v. Assistant Commissioner of Income Tax (supra). Besides, as rightly pointed out by the learned counsel for the respondent, the controversy involved in the present case stands concluded by the decision of this court in the case of Commissioner of Income-tax-1 v. Jayaben Ratilal Sorathia (supra) wherein it has been held that while it cannot be disputed that considering section 153A of the Act, the Assessing Officer can r....