2020 (7) TMI 64

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.... i) Making addition u/ s 68 of the act of Rs. 3,50,00 ,000/- being the advance received against sale of its agricultural land at Jaipur arbitrarily rejecting all the documents and evidences filed by the appellant company to discharge its onus of proving genuineness and credit worthiness of the persons from whom advance money has been received. ii) Making addition u/s 68 of the act of Rs. 3,50,00 ,000/- although he has himself independently verified it by issuing summon for which M/s Instronics Ltd. has duly submitted its reply during the course of assessment proceeding. iii) Making addition u/s 68 of the act of Rs. 3,50,00 ,000/- although it has already been assessed u/ s 143 (3) of the act and no incriminating document....

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....earch. 6. During the assessment u/ s 153 A, the Assessing Officer issued letter to the assessee on 30.12.2015 enquiring about the unsecured loans received during the assessment year 2008-09 and disclosed in the balance sheet which is a part of books of accounts produced before him. After due enquiries, the AO made addition of unsecured loan received from one party namely, Aerodyne Electronics Pvt. Ltd. treating it as bogus and liable to be taxed u/s 68 of the Act. 7. The moot jurisdictional issue before us to be adjudicated is whether such addition which is a part of books of accounts can be added to the income of the u/s 68 of the Act in the absence of any incriminating material found during the search especially when the assessment ....

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....elevance 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 an....