TaxTMI 
TaxTMI 
2017 (6) TMI 774
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....investigation wing of the Department on one Mr SK Gupta, Chartered Accountant, who admitted during survey that he was controlling more than 38 companies whose primary task was to provide accommodation entries. During the course of survey action certain documents/laptops were impounded in which records of providing accommodation entries to various entities including the assessee's group were maintained and it also included the name of assessee's counsel, one Mr. AS Aneja, who is alleged to have acted as a conduit in providing accommodation entries between Mr SK Gupta and the assessee's group companies. Subsequently, search and seizure operation u/s 132 of the Income Tax Act, 1961 (the 'Act') was carried out on 5.1.2009 in M/s Taneja-Puri Gro....
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....8. Ld. CIT (A) only allowed the assessee's ground challenging disallowances from security expense and telephone expenses. 4. Now, the assessee has approached the ITAT and has raised the following grounds of appeal:- "1. That the learned Commissioner of Income Tax (Appeals) has grossly erred both in law and on facts in sustaining an assessment made under section 153A/143(3) of the Act at an income of Rs. 49, 73, 960/ as against returned income of Rs. 1,10, 860/-. 2. That the learned Commissioner of Income Tax (Appeals) ignored the basic fact that the additions made were beyond the scope of assessment made under section 153A/ 143(3) of the I.T. Act, as no incriminating material was found during the course of search procee....
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....td. on account of share application money, Rs. 5, 00, 000/- were received from M/s VA Foods P. Ltd. on account of share application money, and all the necessary details regarding the said transactions were filed before learned DCIT and CIT (A) as well, which were totally ignored and arbitrarily brushed aside by both the lower authorities, thus, addition so made and sustained was clearly based on suspicion and surmises and is liable to be deleted as such. 5. That the learned Commissioner of Income Tax (Appeals) has ignored the basic fact that reliance placed on the statement made by Sh. D.N. Taneja on 07.01.2009 and surrender made of Rs. 6.23 crores is an irrelevant and extraneous consideration, as Sh. D.N. Taneja was never a direct....
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....proceedings and no incriminating material found during the course of the search had been linked to the addition. Ld. Authorised Representative relied on the decision of the Hon'ble Delhi High Court in the case of Kabul Chawla reported in 380 ITR 573 (Del) and submitted that since no incriminating evidence had been found, the impugned addition of Rs. 45,00,000 deserved to be deleted. 6. Ld. DR, on the other hand, supported the order of the Ld. CIT (A) and vehemently argued that the judgment of the Hon'ble Delhi High Court in the case of Kabul Chawla (supra) was not applicable on the facts and circumstances of the present case and he sought to place reliance on the judgment of the Hon'ble Delhi High Court in the case of Anil Ku....
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....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 an assessment framed u/s 143(3) is a completed assessment and nothing further is required to be done by the AO in this regard. 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 disclosed in the original assessment proceedings. 8. It is seen on facts that the original assessment was completed u/s 143(3) on 31.12.2007 and nothing further was required to be done by the AO and as no material was found during the search, the addition has no fe....
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.... 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 proceedings. vi. Insofar as pend....