2018 (3) TMI 663

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.... facts are identical and issues are common, they are clubbed, heard together and disposed-off by way of this common order for the sake of convenience. 2. The grounds of appeal in both the appeals are related to the orders of revision u/s 263 of the Income Tax Act, 1961 (hereinafter called as 'the Act'). In this case, the facts are taken from ITA No.273/Vizag/2017 in the case of A. Mahesh. The assessee filed return of income declaring total income of Rs. 49,64,520/- for the assessment year 2007-08 on 16.5.2008. The assessee is Director in A.S. Steel Traders and deriving salary income, house property, business income, capital gains and other sources. A search u/s 132 of the Act was carried out in the assessee's case on 11.12.2012 in ....

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....re, the Ld. Principal Commissioner of Income Tax set aside the order passed by the A.O. with a direction to re-do the assessment afresh after examining the issue. 3. Aggrieved by the order of the Principal Commissioner of Income Tax, the assessee is in appeal before this Tribunal. During the appeal hearing, the Ld. A.R. argued that in this case the assessment were completed u/s 143(3) r.w.s. 153A of the Act on the issues on which the incriminating material was found during the course of search. The issue raised by the Principal Commissioner of Income Tax with regard to the deemed dividend is duly accounted in the books of accounts and the same cannot be the material for revision u/s 263 of the Act in respect of the search assessments. The ....

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....laced on record. Prima facie, the expenditure was accounted in the regular books of accounts and the assessments for the assessment years 2006-07 and 2007-08 are unabated and completed. The completed assessments cannot be inferred with the regular books of accounts while making the assessments u/s 153A. Reassessment u/s 153A is possible in unabated assessments only with the incriminating material found during the course of search. If no new material is unearthed during the course of search revision u/s 263 is not permissible in the case of completed assessments on the basis of entries made in the regular boos of accounts. For any omission or commission resulting under assessment should be considered in regular assessments but not in search ....

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....ad with Section 153A of the Act. The Cit was wrong in directing the examination of taxability of deemed dividend under Section 2(22)(e) of the Act, in the proceedings u/s 153A of the Act while passing order under Section 263 of the Act when the proceedings under Section 153A itself has not unearthed the said issue. Thus, the CiT do not have power under Section 263 of the Act to give its own opinion when there is no new material unearthed. The issue taken up by the CFT was not within the purview of the Assessing Officer at the inception of assessment proceedings." 11.1 Therefore we hold that it is not permissible to revise the assessment order in the case of search assessments without referring to the incriminating material in the case of....