TaxTMI 
TaxTMI 
2019 (12) TMI 318
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...."The Ld. CIT(A) has erred in holding that completed assessment could not be interfered with by the Assessing Officer without incriminating material, whereas the provisions of Section 153A of the IT Act, 1961 do not stipulate any such restrictions on the powers of the Assessing Officer. 2. The Ld. CIT(Appeals) has erred in law and on the facts in deleting the addition of Rs. 74,74,803/- on account of estimation of unaccounted profit. 3. The Ld. CIT(A) has erred in law and on the facts in deleting the addition of Rs. 29,07,267/- on account of disallowance of expenses. 4. The Ld. CIT(A) has erred in law and on the facts in deleting the addition of Rs. 14,61,443/- on account of unaccounted profit with different partie....
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....ue for notice u/s 143(2) has elapsed at the time of search proceedings undertaken and secondly, assessments u/s 153A has to be essentially based on documents unearthed during the course of search and seizure operation. The assessee has challenged the additions/disallowances on the ground that since the assessments for the years in question were completed assessments and in absence of any incriminating material having been found during search, additions in its case could not have been made by Assessing Officer. 4. The Ld. CIT(A) accepting the contention of the assessee deleted the addition holding as under: 12. "As it is reflected from assessment orders, a search and seizure operation was conducted by the Investigation Wing of th....
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.... Court has taken a view in such cast that 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 available with the Assessing Officer 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. As per Hon'ble Court, such assessment has to be made under the section only on the basis of the seized material. It is further opined by Hon'ble Court that completed assessment can be interfered with by the Assessing Officer while making the assessment in the section 153A only on the basis of some incriminating material....
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....t during the search proceedings for making in these years. Therefore, on both the counts, no addition/disallowance could have been made by AO by disturbing the income disclosed in the returns filed by appellant. In such situation, the additions/disallowances made by Assessing Officer, as mentioned above, for AYs 2008-09 to 2012-13, are not sustainable and liable to be deleted. I, therefore, delete the additions made by the A for the aforesaid five assessment years and allow the grounds taken by the appellant." 5. During the arguments before us, the Ld. AR, Ms. Nidhi Srivastava, vehemently argued that provisions of sec. 153A of the Act do not stipulate any restrictions on the powers of the Assessing Officer to complete the assessment base....