TaxTMI 
TaxTMI 
2017 (12) TMI 359
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.... the jurisdiction of provisions of Section 153A of Income Tax Act, 1961 and Commissioner of Income Tax (Appeals) erred in not holding so. 2. On the facts and circumstances of the case and in law, the Commissioner of Income Tax (Appeals) erred in confirming the addition of Rs. 46,19,000/- made by the Assessing Officer on account of alleged bogus purchases." 3. The assessee firm is engaged in the business of manufacturing and export of artificial jewellery. Although the assessee's registered address is ¾ South Industrial Area, Kirti Nagar, New Delhi, the main business activity of the firm is carried out from 49, Udyog Vihar Ph-IV, Gurgaon. Besides, the assessee firm is also using Plot No. 110, Sector 8, Manesar, Gurgaon, Haryana a....
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....x Act, 1961 is carried out in the case of the assessee on 26/4/2010 while completing the assessment u/s 153A/143(3). The Assessing Officer made the addition on account of bogus purchase. The Ld. AR submitted that the addition made by the Assessing Officer is beyond the scope of jurisdiction of Section 153A of the Act. The Ld. AR submitted that no incriminating material or evidence was found during the course of search so as to doubt the purchases. On date of search i.e. 26th April 2010 no assessment proceedings were pending for the year under consideration. The Ld. AR submitted that the Assessing Officer was not justified in disturbing the concluded assessment without there being any incriminating material found during the search. Infact, i....
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....which reads as under: "8. We have heard both the counsel and perused the relevant available with us, especially the orders of the revenue authorities and the cases referred by the Ld. Counsel of the Assessee in the shape of Paper Book. We find that the additions made by the AO are beyond the scope of section 153A of the Income Tax Act, 1961, because no incriminating material or evidence had been found during the course of search so as to doubt the purchases. It was noticed that as on the date of search i.e. 26.4.2010, no assessment proceedings were pending for the year under consideration and the AO was not justified in disturbing the concluded assessment without there being any incriminating material being found in search. In fact, in th....
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.... 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 icnoem would be brought to tax" iv. Although Section 153A 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 any relevance or nexus wit....