2016 (10) TMI 1316

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....ing Officer u/s 68 of the Income tax Act, 1961 on account of bogus share application money/share premium received by the assessee company. 2. The order of the CIT(A) is erroneous and is not tenable on facts and in law." 3. The assessee company was formed to carry on the business of development of computer software, to establish and run computer data processing/computer entries etc. Search and seizure action was initiated on the assessee group on 6/11/2008 u/s 132 of the Income Tax Act, 1961. A search warrant was also issued and executed in the name of the appellant. The original return of income u/s 139 of the Act was filed by the assessee on 29/10/2005, at a total income of Rs. Nil. Thereafter, the case of the assessee was centralized i....

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....arch takes place. (ii) Assessments and reassessments pending on the date of the search shall abate. The total income for such AYs will have to be computed by the AOs as a fresh exercise. (iii) The AO will exercise normal assessment powers in respect of the six years previous to the relevant AY in which the search takes place. The AO 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 153 A does not say that additions should be strictly made on the basis ....