TaxTMI 
TaxTMI 
2021 (9) TMI 652
X X X X Extracts X X X X
X X X X Extracts X X X X
....unds inter alia that :- "1. On the facts and in the circumstances of the case, the CIT(A) has erred in law in holding that the AO could not have proceeded to frame assessment u/s 153A of the Act as no incriminating documents/assets were found during the search without appreciating that the provision of section 153A of the Act does not stipulates any such conditionality. 2. On the facts and in the .circumstances of the case, the CIT(A) has erred in law in allowing the appeal of the assessee without independently verifying the facts of the case, being a fact finding authority as mandated by the Delhi High Court in the case of CIT Vs Jansampark Advertising. 3. The CIT(A) has erred on facts and in law in deleting the ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....as been found during the search operation pertaining to the year under assessment and thereby allowed the appeal. Feeling aggrieved, the Revenue has come up before the Tribunal by way of filing the present appeal. 4. We have heard the ld. Authorized Representatives of the parties to the appeal, gone through the documents relied upon and orders passed by the revenue authorities below in the light of the facts and circumstances of the case. 5. We have perused the impugned order passed by the ld. CIT (A) allowing the appeal filed by the assessee, operative part thereof is extracted for ready perusal as under :- "Summary of the legal position (xxiii) On a conspectus of Section 153A(1) of the Act, read with the provisos t....
X X X X Extracts X X X X
X X X X Extracts X X X X
....on only on the basis of seized material." e) 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 153A is relatable to abated proceedings [i.e. those pending on the date of search] and the word 'reassess' to completed assessment proceedings. f) 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 and any other material existing or brought on the record of the AO. g) Completed assessments can be inte....
X X X X Extracts X X X X
X X X X Extracts X X X X
....this case and contended that addition on merit has not been discussed and adjudicated upon by the ld. CIT(A). 7. Bare perusal of the assessment order passed by the AO goes to prove on file that no "incriminating material" was there to support the additions made by the AO. It is settled principle of law that when no incriminating material has come on record, very initiation of assessment proceedings u/s 153A is not sustainable in the eyes of law. Ld. DR for the Revenue has failed to rebut the issue decided by the ld. CIT (A) that in the absence of any incriminating material, assumption of jurisdiction u/s 153A of the Act is bad in law. Ld. CIT (A) has decided the factual issue in the light of the settled principle of law laid down by Hon'....