TaxTMI 
TaxTMI 
2019 (1) TMI 751
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....nating material found during the course of search, the assumption of jurisdiction u/s 153A of the Income-tax Act, 1961 [hereinafter referred to as 'the Act' for short] is arbitrary, unjust and consequently the addition/disallowance made by the Assessing Officer under a completed assessment, not abated, is arbitrary, unjust and bad in law." 3. Since the additional ground challenges the assumption of jurisdiction by the Assessing Officer to frame u/s 153A of the Act and being a legal ground, the same is admitted. Since the additional ground mentioned hereinabove goes to the root of the matter, the same is adjudicated first. 4. Facts on record reveal that search and seizure operation was conducted on M/s Flex Group of cases on 23.02.2006. For assessment year 2003-04, assessment was completed u/s 143(3) of the Act vide order dated 31.03.2005. Return for assessment year 2004-05 was filed on 31.10.2004 and time to issue notice u/s 143(2) of the Act expired on 30.09.2005. These facts show that on the date of search, the assessment years 2003-04 and 2004-05 were completed assessment and, therefore, any addition made in the assessment framed u/s 153A of the Act has to be based....
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....ax". 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 the record of the AO. vii. Completed assessments can be int....
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....een paid by the assessee during the year under consideration. Addition of Rs. 55,675/- was made, which was confirmed by the CIT(A). 19. Before us, the ld. AR vehemently stated that the Assessing Officer has made addition without bringing any cogent material evidence on record to substantiate his claim that the assessee must have paid some kickbacks for participating in the said programme. It is the say of the ld. AR that Volkar Committee by the United Nations looked into the illicit transactions done by Iraq in oil for food programme but nowhere the said committee has stated that the assessee has actually paid any kickbacks. The ld. AR further stated that the report of Volkar Committee was for a specific purpose and the same cannot be used for framing assessment under the Indian Income Tax Act. The ld. AR relied upon the judgment of the Hon'ble Jammu and Kashmir High Court in the case of International Forest Company 101 ITR 719. 20. The ld. AR further stated that the onus is upon the Revenue to prove that the assessee has incurred certain expenditure which are unexplained before making any addition u/s 69C of the Act. Reliance was placed on the decision of the Hon'ble....
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.... computation of taxable income unlike in the return filed initially u/s 153A of the Act wherein deduction u/s 80HHC was claimed against the total income in the normal computation of taxable income. The revised return of income was dismissed by the Assessing Officer and accordingly, new claims made in the revised return were also rejected. 29. The claim of deduction u/s 80HHC against book profit u/s 115JB was considered by the Assessing Officer and was denied by observing as under: "As discussed above, the return furnished on 31.7.2008 referred to as 'revised return u/s 153A' by the assessee is considered as invalid apd not taken into cognizance. Thus the return filed initially on 3.10.2006 (u/s 153A) is treated as a valid return furnished in response to notice u/s 153A. From the perusal of the computation of taxable income for the year under consideration furnished along with return u/s 153A. it is seen that while computing taxable income as per normal computation, the assessee has claimed deduction u/s 80HHC after including long term capital gain in the gross total income. However, as per the provision of section 112(2) of the Income Tax Act. 1961. the deduction under ....