2017 (2) TMI 1195

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....ed the assessee's appeals for 2012. However, it allowed them for the other years. Today, this Court has issued notice in ITA No. 87/2017 relatable to AY 2010-11. It is urged by the Revenue that even for these years, the ITAT's decision is incorrect inasmuch as it has not appreciated the law declared by this Court in CIT v. RRJ Securities Limited 380 ITR 612 (Del) and Kabul Chawla 2016 (380) ITR 573 (Del) correctly. A search took place in the premises of M/s. Kalra Group on 28.07.2011. The flagship company was M/s. Consortium Securities Private Limited, a stockbroking concern with seats in various Stock Exchanges. The permanent promoter - Sh. Parminder Singh Kalra had his offices in Delhi. The present assessee is a third party. After scannin....

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....AT and the authorities below. The Revenue's contentions were that the assessments, though completed, had not taken note of the materials and that in the circumstances, it was open to the AO to examine them in the light of the seized materials to conclude whether additions had to be made. The decision in Kabul Chawla (supra) is decisive as to under what circumstances additions can be made. Pertinently, in the conclusions, this Court had observed: "Summary of the legal position 37. On a conspectus of Section 153A(1) of the Act, read with 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 u....

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....tion 153 A is relatable to abated proceedings (i.e. those pending on the date of search) and the word 'reassess' to completed assessment proceedings. vi. Insofar as pending assessments are concerned, the jurisdiction to make the original assessment and the assessment under Section 153A merges into one. Only one assessment shall be made separately for each AY on the basis of the findings of the search and any other material existing or brought on the record of the AO. vii. Completed assessments can be interfered with by the AO while making the assessment under Section 153 A only on the basis of some incriminating material unearthed during the course of search or requisition of documents or undisclosed income or property discovered ....