TaxTMI 
TaxTMI 
2022 (9) TMI 1424
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....es of the case, Ld. CIT(A) has erred in law & facts in deleting the addition of Rs. 12,50,000/- on account of addition of unsecured loan u/s 68 of the IT Act, 1961. (iii) On the facts and in the circumstances of the case, the Ld. CIT(A) has erred in law and facts in deleting the addition of Rs.4,95,17,100/- on account of undisclosed investment in shares. (iv) On the facts and in the circumstances of the case, the Ld. CIT(A) has erred in quashing the assessment order passed by AO u/s 153A/143(3) by holding that the AO had wrongly assumed jurisdiction u/s 153A of the I.T. Act, 1961 and made addition to the returned income when no incrementing material was found during the course of search and seizure action." 3. The perti....
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....d and which has been on record hitherto. The ld. DR has tendered his arguments in the form of written submission which are as under: "1. The decision of the CIT(A) that no addition can be made without reference to any seized material in the concluded proceedings, when the proceedings were concluded in not acceptable. It is settled position of law that when the language of the Act is clear and unambiguous then literal interpretation has to be followed. The language of section 153A(1)(b) of the Act is very clear, wherein it has been laid down that the Assessing Officer shall assess or reassess the total income of the assessee. This should be read with the legislative history of the provisions related to search assessments particularl....
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....clearly empower the AO to assess or reassess the total income of six assessment years immediately preceding the year in which search is conducted. This is irrespective of the fact that whether the Department has seized any incriminating documents or not. As regards the decision that in absence of any incriminating documents seized, no addition can be made, it is submitted that the decision of Hon'ble Delhi High Court in the case of Kabul Chawla referred to supra has not been accepted by the Department. The Department has taken consistent view that the provisions of section 153A do not restrict the Assessing Officer to make addition only on the basis of incriminating documents. The provisions envisage assessing the "total income" and not und....
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.... (v) CIT v. ST. Francies Clay Decor Tiles [2016] 240 Taxman 168/70 taxmann.com 234 (Ker.) (para 5) and (vi) CIT v. Promy Kuriakose [2016] 386 ITR 597 (Ker.) (para 5). 2. CIT Vs Raj Kumar Arora [2014] 52 taxmann.com 172 (Allahabad)/[2014] 367 ITR 517 (Allahabad) where Hon'ble Allahabad High Court held that Assessing Officer has power to reassess returns of assessee not only for undisclosed income found during search operation but also with regard to material available at time of original assessment 3. CIT Vs Kesarwani Zarda Bhandar Sahson Alld. [ITA No. 270 of 2014] (Allahabad) where Hon'ble Allahabad High Court held that Assessing Officer has power to reassess returns of assessee not only for....
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.... Assessing Officer was arbitrary or unreasonable, additions so made by Assessing Officer by rejecting books of account was justified. 8. CIT Vs Anil Kumar Bhatia (24 taxmann.com 98. 211 Taxman 453, 352 ITR 493 where Hon'ble Delhi High Court held that jurisdiction of AO under 153A is to assess total income for the year and hot restricted to seized material. Post search reassessment in respect of all 6 years can be made even if original returns are already processed u/s 143(1)(a) - Assessing Officer has power u/s 153A to make assessment for all six years and compute total income of assessee, including undisclosed income, notwithstanding that returns for these years have already been processed u/s 143(1)(a). Even if ....
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....f CIT Vs Kabul Chawla (supra) held as under: "vii. Completed assessments can be interfered with by the A.O. while making the assessment under section 153A only on the basis of some incriminating material unearthed during the course of search or requisition of documents or undisclosed income or property discovered in the course of search which were not produced or not already disclosed or made known in the course of original assessment" 9. The Hon'ble Delhi High Court in its recent decision in the case of Pr. CIT vs. Meeta Gutgutia (2017) 395 ITR 526 in paras 69 to 72 has held as under: "69. What weighed with the Court in the above decision was the "habitual concealing of income and indulging in clandestine ope....