2018 (4) TMI 401

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....etions of the sum of `99,00,630/- as sale consideration of M/s. Nageshwar Investment Ltd. and the capital gains declared by the assessee in the circumstances of the case?" The search assessments were completed in the case of Rajdarbar pursuant to search and seizure proceedings in respect of Rajdarbar Group of Companies, which was undertaken on 31.07.2008. The notices were issued to the present assessee / respondent under Section 153A of the Income Tax Act, 1961 (hereafter referred to as "the Act"). The AO brought to tax certain amounts for the assessment years in respect of the two assessees involved in these four appeals on the ground that the capital gains reported by them for the sale of shares in M/s. Nageshwar Investments, were bogu....

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....s appeal before the Hon'ble High Court was also dismissed vide order dated 29.03.2011. It is seen from the records that no material has been found during the search to justify the addition. In our considered opinion section 153A does not authorise the making of a de novo assessment in this particular assessment year. While under the first proviso, the AO is empowered to frame assessment for six years, under the second proviso only assessments which are pending on the date of initiation of search abate. The effect is that completed assessments do no abate. The assessments can be said to be pending only if the AO is statutorily required to do something further. If the section 143(2) notice has been issued, the assessment can be said to be pen....