TaxTMI 
TaxTMI 
2018 (3) TMI 957
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....s return was picked up for scrutiny and the assessment was framed under Section 143(3) of the Act vide order dated 24th December, 2009. Thereafter, a search took place under Section 132(1) of the Act on 28th January, 2011. Consequent to the search, the AO issued notice under Section 153A of the Act requiring the assessee to file the return of income. The assessee filed the return declaring the same income as was originally declared. During the course of the assessment proceedings, the AO raised the issue of the share capital received by the assessee company during the year. Not being satisfied with the reply and evidences submitted by the assessee company, the AO made addition of the share capital received by the assessee company during both the years. 2.1 Aggrieved, the assessee approached the Ld. CIT (A). It was contended by the assessee before the Ld. First Appellate Authority that no incriminating material was found during the course of the search and, therefore, the AO was not justified in making addition/s on account of the share capital received during the year/s. It was submitted before the Ld. CIT (A) that the assessment/s for the year/s under consideration were not pen....
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..... 1,29,28,000/- made by the AO to the returned income of Rs. NIL. (ii) That the additions and disallowance sustained by the learned CIT (A) are against the facts on record as well as against the statutory provisions of the Act. 7. On the facts and circumstances of the case the learned CIT(A) has erred both on facts and in law in confirming the addition of an amount of Rs. 1,28,00,000/- made by AO on account of share capital under Section 68 of the Act. 8. That the said addition has been confirmed rejecting the detailed explanation and evidences brought on record by the assessee to prove the identity and creditworthiness of the shareholders as well as the genuineness of the transaction. 9. On the facts and circumstances of the case the learned CIT (A) has erred both on facts and in law in ignoring the fact that the addition of Rs. 1,28,00,000/- made by the AO are otherwise untenable since the same is not arising from the any incriminating material seized during the course of search and reassessment under Section 153A/153A consequent to search is to be confined only to the incriminating material belonging to the assessee found during the course of ....
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....roking Limited, (Calcutta) * Pr. CIT, Delhi - 02 vs. Best Infrastructure India (P) Ltd. reported in 2017 (10) TMI 1006. * Pr. CIT - Central -3 vs. Baba Global Ltd. reported in 2017 (2) TMI 346 - (Delhi). * Pr. CIT (Central) - 3 vs. Dharampal Premchand Ltd. reported in 2017 (8) TMI 958 (Del). * CIT-(Central) -1, vs. Jakson Engineers Ltd. reported in 2015 (12) TMI 1523 (Del). * CIT - 7 vs. RRJ Securities Ltd. reported in 2015 (11) TMI 19 (Del). * ITAT Chandigarh in Mala Builders Pvt. Ltd. v. ACIT reported in [2016] 51 ITR (Trib.) 272 * ITAT Delhi in Shashi Puri v. ACIT in ITA No. 990 & 991/Del/2012 dated 14.02.2017 * ITAT Delhi in DCIT v. Ramesh Batta reported in [2017] 55 ITR (Trib.) 612. 5. In response, the Ld. DR submitted that the AO was justified in making the impugned additions once a search has taken place on the assessee. It was contended that as per provisions of Section 153A, the assessment for six years preceding the year of the search get automatically reopened on the date of search and once the assessments are reopened, the AO is entitled to take into consideration the entire facts and he is not p....
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....h both the disclosed and the undisclosed income would be brought to tax". iv. Although Section 153 A 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 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 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....