2019 (7) TMI 120

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....3.2015, passed by CIT(Appeals) for the assessment year 2005-06 for the quantum of assessment passed u/s 153A/143(3). 2. We will first take up the appeal for the assessment year 2006-07, wherein the assessee has challenged the determination of income of Rs. 19,74,515/- as against Rs. 12,43,220/-. 3. The facts in brief are that the assessee has filed its return of income for the assessment year 2006-07 at an income of Rs. 12,43,220/- on 30.03.2007. Thereafter, proceedings u/s 153C was initiated in the case of the assessee in view of search and seizure action taken in the case of Surya Vinayak group of industries carried on 3.3.2011. In the assessment order completed u/s 153C / 143(3) on 24.12.2009 assessee's income was computed at Rs. 2....

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....terial whatsoever was found during the course of the search and the earlier assessment order had attained finality and was unabated assessment at the time of search. Therefore, addition of Rs. 5 lacs could not have been made. However, Ld. CIT (A) has confirmed that the said addition on the same reasoning given by the AO. 6. Before us, Ld. Counsel submitted that from a bare perusal of the assessment order it can be seen that there is no reference to any seized material found during the course of search and in fact sum of Rs. 5 lacs was appearing in the books of account. Thus, such an addition is beyond the scope of section 153A in view of the decision of Hon'ble Delhi High Court in the case of CIT vs Kabul Chawla (2016) 380 ITR 573 (Delhi....

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....is case also, the return of income for the assessment year 2005-06 was filed on 29.10.2005 at an income of Rs. 17,19,760/- and thereafter assessment order was passed vide order dated 24.12.2009 passed u/s 153C/143 (3) at an income of Rs. 18,03,030/-. Later on, fresh proceedings u/s 153(A) was initiated in wake of search and seizure action carried out on 3.3.2011. Thus, on the date of search, assessment proceedings for the assessment year 2005-06 was not pending and in view of 2nd proviso to section 153A, such an assessment is reckoned as unabated assessment. Ld. AO noted that the Tribunal in the first round of proceedings has set aside the disallowance u/s 14A read with rule 8D to be decided afresh. However, the AO instead of passing the....