2016 (6) TMI 1437

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....n not holding that the order passed u/s 143(3) r.w.s 153C of the Income Tax Act, 1961 (hereinafter the Act) is bad in law, illegal and void ab-initio that to in the absence of any material seized during search. The remaining issues/grounds were not pressed by the ld. counsel for the assessee, being academic in nature. 2. During hearing of these appeals, the ld. counsel for the assessee, Shri Vijay Mehta, contended that no seized material was referred to by the ld. Assessing Officer for which our attention was invited to para -8 and 8.4 of the assessment order. It was also pleaded that even there is no finding in the impugned order with respect to the claim of the assessee for which our attention was invited to page-2, para 1.2 of the imp....

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.... carry on any business during the year as well as in the next two years. The only income, during the year of that company was petty sales and long term capital gains on sale of land. It was also noticed that the assessee company had taken loan and advances of Rs. 2,80,00,000/- on 01/02/2008 from BRMTPL. The ld. Assessing Officer asked the assessee as to why this amount should not be treated as income in the hands of the assessee as per provisions of sections 2(22)(e) of the Act. In reply, the assessee claimed as under:- "During the year, the company has received an advances of Rs. 2.80 crores from B.R. Machine Tools Pvt. Ltd. against the sale of property at Silvasa which is owned by the company. Silvasa properties were worth more than Rs....

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....rize making denovo assessment and the power provided to the ld. Assessing Officer u/s 153A is confined to undisclosed income unearthed during search. The aforesaid decision of the Tribunal dated 07/08/2015 in Gopal Agrawal vs ACIT (ITA Nos, 7075 & 7076/Mum/2012), is reproduced hereunder for ready reference:- "The aforesaid appeals have been filed by the assessee against separate impugned orders dated 16.10.2012 and 17.10.2012 passed by CIT(A) -41, Mumbai for the quantum of assessment passed u/s 143(3) r.w.s. 153C for the assessment years 2007- 08 and 2008-09 respectively. 2. The preliminary ground raised in both the appeals by way of additional grounds are that; the Ld. CIT(A) has erred in law and on facts in affirming the assessment ....

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....3/Mum/2012 vide order dated 28.05.2014 has decided the similar issue in favour of the assessee. On the other hand, Ld. DR strongly relied upon the order of the CIT(A). 4. After considering the rival submissions, we find that in the additional ground raised by the assessee, the main issue which has been challenged before us, is that, in absence of any incriminating material found during the course of the search, the additions made by the Assessing Officer and confirmed by the CIT(A) are bad in law as the assessments for the impugned assessment years were not abated at the time of issuance of notice u/s 153C. Here in this case, admittedly, search took place on 12.08.2009 and notice u/s 153C for acquiring the jurisdiction for forming the as....