TaxTMI 
TaxTMI 
2018 (7) TMI 377
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....impugned orders passed by the ld. CIT(A) on 25.01.2016. Since all these appeals are based on similar facts and identical grounds, we are, therefore, proceeding to dispose them off by this consolidated order for the sake of convenience. 2. Briefly stated, the facts concerning the appeal in the case of Saluja Construction Company Ltd. are that a search and seizure action u/s 132(4) of the Income-tax Act, 1961 (hereinafter also called 'the Act') was taken up on 12.02.2012. The assessee was called upon to file return u/s 153A of the Act, which was furnished with the originally declared income of Rs. 47,93,380/- as against the income assessed u/s 143(3) at Rs. 50,33,380/-. During the course of assessment proceedings, the Assessing Officer found....
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....t'. 4. The ld. CIT(A) has relied on the judgment of the Hon'ble jurisdictional High Court in the case of Kabul Chawla vs. CIT (2016) 380 ITR 573 (Del) to delete the addition. The factual matrix of the case is that a search was carried out u/s 132 on 15.11.2007 on BPTP Ltd., a leading real estate developer operating all over India and some of its group companies including the premises of the assessee, who owned and controlled the group. No assessment proceedings were pending for the assessment years 2002-03, 2005-06 and 2006-07 as on the date of the search. The assessments for such assessments years had already been made u/s 143(1) of the Act. The assessee filed returns for the three assessment years declaring certain income. The assess....
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....ous year relevant to the AY in which the search takes place. ii. Assessments and reassessments pending on the date of the search shall abate. The total income for such AYs will have to be computed by the AOs as a fresh exercise. iii. The AO will exercise normal assessment powers in respect 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 income would be brought to tax". iv. Although Section 153 A does not say t....
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....nt from the ratio of the above judgment that once a search takes place u/s 132 of the Act, the assessee is obliged to file returns for the six assessment years immediately preceding the previous year relevant to the assessment year in which the search took place. In so far as the completed assessments as on the date of the search are concerned, the same are to be repeated as increased by additions, only if, based on incriminating material found during the course of search. In other words, if no incriminating material is found during the course of search, then, the amount of total income determined under the earlier completed assessments is to be adopted in a fresh assessments u/s 153A without making any further addition. 6. Adverting to th....
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....closure of certain undisclosed loans/advances and offered additional income to that extent. It implies that the creditors which have been instantly added u/s 68 of the Act do not form part of the undisclosed loans/advances which were surrendered by the assessee group for which some incriminating material was found. Be that as it may, it is apparent from the assessment order itself, as has been candidly admitted by the ld. DR as well, that there is no reference to any incriminating material in the assessment order qua these creditors/advances in respect of which addition of Rs. 24.39 crore was made. Respectfully following the judgment of the Hon'ble jurisdictional High Court in Kabul Chawla (supra), we hold that the ld. CIT(A) was justified ....