TaxTMI 
TaxTMI 
2017 (7) TMI 1315
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....error by not appreciating the facts in its entirety as brought on record in the case of Sh. Anil Bhatia by the jurisdictional High Court 2. On the facts and in the circumstances of the case, the CIT (A) has erred in law and on facts in arriving at the conclusion that the words 'total income' as used in section 153A would only mean undisclosed income discovered from seized / incriminating material. 3. On the facts and in the circumstances of the case, the order of the CIT (A) is perverse inasmuch as it has failed to appreciate the material facts and circumstances of the case as brought out in the assessment order. 4. On the facts and in the circumstances of the case, the CIT (A) has erred in law and on facts in ado....
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....hat there was no incriminating material in the present case. The Special audit under section 142(2A) was referred by the Assessing Officer on the basis of complexity of accounts, multiplicity of transactions in the accounts maintained by the assessee, hence the report submitted in compliance of the said direction was incriminating material on the basis of which assessment was framed under section 153A of the Act. He submitted that special audit report was linked with search. He submitted that there is no mention of the word "incriminating" in the provisions laid down under section 153A of the Act. He placed reliance on the decision of Hon'ble jurisdictional High Court of Delhi in the case of CIT Vs. Kabul Chawla (2015) 61 taxman.com 412 (De....
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....icer has no option, but to make addition, of course, on merits, in the same assessment for which notice under section 153A had been issued. He asserted that additions can be made beyond seized material. In this regard he also referred the decision of Hon'ble High Court of Delhi in the case of Filatex India Ltd., (2014)-PIOL 1325-HC-Del.-IT. He contended further that it is not the case of the ld. CIT (Appeals) that there was order under section 143(3), prior to search, therefore, no completed assessments are being disturbed. The ld. CIT [DR] submitted that ld. CIT (Appeals) has wrongly interpreted the cited judgements before him. The Hon'ble Kerala High Court in the case of E. N. Gopakumar Vs. CIT (2016) 75 taxman.com 215 (Ker.) after con....
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....al Satyapal Ltd. He placed reliance on the following decisions :- (i) Pr. CIT Vs. Meeta Gutgutia Prop. M/s. Ferns 'N' Petals & Others, ITA. Nos. 306 and 307/2017 [ decision dated 25.05.2017 (Del.HC) ]; (ii) CIT Vs. Kabul Chawla (2016) 380 ITR 573 (Del.); (iii) CIT Vs. Pinaki Misra (2017) 392 ITR 347 (Del.). 4. Having gone through the above cited decisions, we find that the ratio laid down by the Hon'ble jurisdictional High Court of Delhi on an identical issue is binding upon the Tribunal. In its recent decision on 25.05.2017 in the case of Pr. CIT Vs. Meeta Gutgutia (supra), the Hon'ble jurisdictional High Court of Delhi after discussing several decisions including its earlier decision in the case of CIT Vs. An....
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....the Assessing Officers as a fresh exercise. iii. The Assessing Officer will exercise normal assessment powers in respect of the six years previous to the relevant AY in which the search takes place. The Assessing Officer 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 153A 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 availabl....
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....its entirety instead of reading some portion of it here and there. When the above cited paragraph of the decision of Hon'ble jurisdictional High Court in the case of CIT Vs. Kabul Chawla (supra) is read in its totality, the ratio laid down therein comes out that in absence of any incriminating material found during the course of search and in absence of abetment of assessment on the date of search, the addition made in the assessment under section 153A of the Act cannot be sustained. When we examine facts of the present case, in view of the ratio laid down in the above cited case of CIT Vs. Kabul Chawla (supra) we find that in the present case search and seizure operation under section 132 of the Act was carried out on 21.01.2011 in Dharamp....