2021 (2) TMI 1294

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.... operations at the premises of the assessee were conducted on 20/10/2008 and pursuant to the notice issued under section 153A of the Income Tax Act, 1961 (for short "the Act"), assessee filed return of income declaring nil income, as against which assessment under section 153A/143 (3) of the Act was made at Rs. 7,00,55,940/- by making an addition of Rs. 7 crores under section 68 of the Act and also Rs. 55, 940/-towards unverifiable expenses, by order dated 31/12/2010. Aggrieved by such assessment, assessee preferred appeal before the Ld. CIT(A) and the Ld. CIT(A) after enquiry and also obtaining the remand report from the learned Assessing Officer, held that the claim of the assessee with regard to the addition of 7 crores was unsubstantiat....

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....uch an order Revenue preferred this appeal challenging the findings of the Ld. CIT(A) in respect of both these aspects. 5. It is the submission of the Ld. DR that the order of the Ld. CIT(A) is unsustainable on the ground that without deciding the substantive grounds in respect of the additions as made on merits and without adjudicating all such grounds raised by the assessee, the Ld. CIT(A) decided the matter; that the assessee did not challenge the validity of the proceedings under section 153A of the Act in the first round of litigation and, therefore, the Ld. CIT(A) is not justified in entertaining the same in the second round of litigation that too when the remand was made on the arguments of the assessee that the documents were not p....

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....record in the light of the submissions made on either side. It could be seen from the order dated 31/3/2014 in ITA No. 2590 /Del/ 2013, appeal preferred by the assessee, the assessee had taken a ground, vide ground No. 3 that the learned Assessing Officer was not justified to ignore the plea that the assessment under section 153A of the Act be restricted to assessment in respect of seized documents and in the absence of any seized documents the assessment framed in section 153A of the Act is bad under law and deserves to be quashed. Such a ground is very much available before the Tribunal in the first round of litigation. It is, therefore, not open for the Revenue now to contend that the assessee had taken a ground which was not taken in th....

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....ssment 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 of evidence found in the course of the search, or other post-search material or information available with the AO which can be related to the evidence found, it does not mean that the assessment "can be arbitrary or made without any relevance 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 w....