TaxTMI 
TaxTMI 
2019 (8) TMI 1790
X X X X Extracts X X X X
X X X X Extracts X X X X
....on 143(3) Read with section 153A of the Income-tax Act, 1961 (hereinafter 'the Act') vide order dated 27.03.2015 for AY 2007-08. 2. The only issue in this appeal of Revenue is against the order of CIT(A) deleting the addition made by AO on account of unexplained share application money under section 68 of the Act amounting to Rs. 3,91,55,000/- and disallowance of expenses relatable to exempt income under section 14A read with Rule 8D of the Rules, as according to CIT(A), the original assessment has not abated and there is no incriminating material found during the course of search. Hence, the assessment on this addition was deleted in view of the decision of Hon'ble Bombay High Court in the case of CIT vs Continental Warehousing Corporat....
X X X X Extracts X X X X
X X X X Extracts X X X X
....me at Rs. 52,850/- under normal provisions. A search and seizure action under section 132 of the Act was conducted in the assessee's case on 29.01.2013. In pursuance to this, a notice under section 153A of the Act was issued to the assessee on 14.02.2014. In response to this, the assessee filed Return of income declaring taxable income of Rs. 49,350/- on 11.03.2014. Subsequent to the search and seizure notice under section 143(2) of the Act dated 04.12.2014 and 142(1) of the act dated 15.12.2014 were issued and served on the assessee. The assessment under section 143(3) read with section 153A of the Act was completed on 27.03.2015 assessing the total income at Rs. 4,03,51,810/-. The assessee has given chronology of events, which are tabulat....
X X X X Extracts X X X X
X X X X Extracts X X X X
....capital in the relevant assessment year and have no bearing to the KY in question. For the relevant assessment year i.e. 2007-08 the share capital has been invested by 13 companies as could be seen from the table mentioned in the assessment order. The assessing officer's report is silent on the investment made by these companies. The assessing officer has made general statements that major part of the search is related to Benco Finance and the Ruchi group and incriminating documents were found during the search action. What incriminating documents were found is nowhere mentioned nor any copies forwarded by the AO. It could be seen from the facts of the case and the remand report submitted by the assessing officer that there is no i....
X X X X Extracts X X X X
X X X X Extracts X X X X
....e ti/s 143(2) was issued till 31.10.2005. As per the relevant provisions of law prevailing during the year cinder consideration notice u/s 143(2) is required to be issued before expire of 12 months from the end of the month in which return was furnished. Accordingly, the AG should have issued notice u/s 143(2) by 31.10.2005. However, no such notice was issued, thus, the assessment is treated to be completed since on the date of search i.e. 31. 10.2009, limit for issuing notice Li/s 143(2) was already expired. In respect of assessment year 2005-06 assessee has filed its return of income on 29.10 2005, which was also processed u/s 143(1). For taking into scrutiny notice u/s 143(2) was required to be issued before 31. 10.2006 i.e. time limit f....
X X X X Extracts X X X X
X X X X Extracts X X X X
....the assessing officer made the aforesaid additions in the absence of any incriminating material found during the search. Therefore, the additions made by the assessing officer under section 68 and under section 14 A are deleted. The learned counsel for the assessee has further argued that the case could not have been reopened under section 153 A as there is no incriminating material found by the Department during the search. However, this contention of the learned counsel is not correct as the AO is mandated by law under section 153A (1) to assess or reassess the total income in respect of six assessment years immediately preceding the assessment year in which the search was conducted. Assessment year 2007-08 being one of the prece....