TaxTMI 
TaxTMI 
2018 (11) TMI 942
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....dings U/s-263 is without any legs and hence needs to be quashed. 2. That on the facts and in the circumstances of the case, the Ld. Pr. CIT (Central) has erred in law by rejecting the argument of the assessee that "assessment has to be completed in course of proceeding U/s-153C based on seized material only" (at para-8 last line) is not correct proposition of law and hence the order passed by the Pr. CIT (Central) U/s-263 needs to be annulled. 3. That on the facts and in the circumstances of the case, the Ld. Pr. CIT (Central) has erred in presuming that the advance of Rs. 70 lakhs to the assessee attracts section 2(22)(e) and not examined by AO in course of assessment U/s-153C is not proper in the eye of law and hence the order setting aside the assessment is bad in law and needs to be annulled. 4. That the order of the Ld. Pr. CIT (Central) being not based on the facts of the case of the appellant and being contrary to law, should hence be quashed and the appellant Company be given such relief or reliefs as prayed for. 5. That the appellant craves leave to amend, alter, modify, substitute, add to, abridge and/ or rescind any or all of the above grounds. 3. The facts....
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....d a letter on 04.02.2016 with Nil income and the assessment was made u/s.153C r.w.s.143(3) of the Act dated 31.03.2016. The AO having satisfied with the explanation and the documents filed assessed the income at Rs.Nil. He further relied on the decision of Kolkata Bench of the Tribunal in case of M/s Tanuj Holdings Pvt. Ltd. Vs. DCIT, ITA No.360/Kol/2013, order dated 20.01.2016, and also no incriminating documents were found in respect of issue of deemed dividend and prayed for allowing the appeal. 6. Contra, ld. DR relied on the order of Pr. CIT and supported the findings of Pr. CIT. 7. We have heard the rival submissions and perused the material on record. Prima facie, the crux of the issue as envisaged by the ld. AR that no incriminating documents were found in search in respect of assessee whereas the assessee has complied with the notice u/s.153C and filed the return of income. Ld AR further submitted that the question of applicability of deemed dividend does not arise as there is no incriminating material was found in the course of search in respect of deemed dividend. The Pr. CIT has considered the transaction of deemed dividend, has passed the revision order against the a....
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....ted 4/10/2007 on the ground that neither the computation of book profit under Section 115JA nor deduction under Section 80HHC of the IT Act were the subject matter of the proceedings under Section 153A and, therefore, the Commissioner of Income Tax could not have invoked the jurisdiction under Section 263 of the IT Act. Challenging the aforesaid order, the present appeal is filed by the revenue. 7. According to Shri Jaiswal, learned Counsel for the revenue, once the proceedings under Section 153A of the IT Act are initiated, then the original assessment/reassessment orders already passed in the assessment years covered under Section 153A stand abated and the Assessing officer is obliged to pass fresh assessment/reassessment orders and determine the total income afresh for those assessment years. In the present case, according to Mr. Jaiswal, the assessment order passed under Section 153A read with Section 143(3) of the Income- Tax Act is erroneous and prejudicial to the interests of the revenue because, firstly, the AO had only determined undisclosed income and had not determined the total income which the mandate of Section 153A of the Income- tax Act. Secondly, the total compu....
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....to Section 153Aprovides for abatement of assessment/reassessment proceedings which are pending on the date of search/requisition. Section 153A(2) provides that when the assessment made under Section 153(A)(1)is annulled, the assessment or reassessment that stood abated shall stand revived. 10. Thus on a plain reading of section 153A of the Income-tax Act, it becomes clear that on initiation of proceedings under Section 153A, it is only the assessment/reassessment proceedings that are pending on the date of conducting search under Section 132 or making requisition under Section 132Aof the Act stand abated and not the assessments/reassessments already finalised for those assessment years covered under Section 153A of the Act. By a circular No.8 of 2003 dated 18-9-2003 (See 263 ITR (St) 61 at 107) the CBDT has clarified that on initiation of proceedings under Section 153A, the proceedings pending in appeal, revision or rectification proceedings against finalized assessment/reassessment shall not abate. It is only because, the finalized assessments/reassessments do not abate, the appeal, revision or rectification pending against finalized assessments/reassessments would not abate. T....
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....er passed under Section 153A read with s. 143(3) of the Act as directed by CIT(A). Therefore, in the facts of the present case, no fault could be found with the AO in giving effect to the order of CIT(A). Consequently, the CIT could not invoke jurisdiction under Section 263 of the income-tax Act on the ground that the assessment under Section 153A read with Section 143(3) was erroneous or prejudicial to the interests of revenue. 15. In the result, the decision of the Tribunal in quashing the order of C.I.T passed under Section 263of the I.T Act cannot be faulted. Accordingly, we see no merit in the present appeal and the same is hereby dismissed with no order as to costs." We also find that the impugned issue is also supported by the decision of the Hon'ble Bombay High Court in the case of CIT vs Continental Warehousing Corporation (Nhava Sheva) Ltd and All Cargo Global Logistics Ltd reported in (2015) 374 ITR 645 (Bom) vide order dated 21.4.2015, wherein the facts before the Bombay High Court and decision rendered thereon are as below :- "Under section 153A of the Income-tax Act, 1961, which enables carrying out of search or exercise of power of requisition, assessmen....