TaxTMI 
TaxTMI 
2023 (3) TMI 279
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....lary and income from other sources. AO has noted that a search and seizure operation u/s 132 of the Act was carried out on KRBL Group of cases on 30.03.2016 and warrant of authorization u/s 132 of the Act was issued in the name of the assessee. Accordingly, notice u/s 153A of the Act dated 02.05.2017 and 25.08.2017 was issued to the assessee asking her to file the return of income for A.Y. 2010-11. In response to notice u/s 153A of the Act, assessee submitted that the return of income filed by her u/s 139 of the Act of Rs.3,86,290/- be considered to be return of income in response to notice u/s 153A of the Act. Thereafter, assessment was framed u/s 153A r.w.s 143(3) of the Act vide order dated 30.12.2017 and the total income of the assessee....
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.... his own fund as unsecured loan from M/s. Vidhya Shankar Investment Pvt. Ltd. and purchased shares of M/s. Index Securities and Research Pvt. Ltd. at very low price resulting into escapement of income. Accordingly, a notice u/s 148 of the Act dated 30.03.2017 was issued to the assessee directing the assessee to file the return of income. AO has noted that since notice u/s 153A of the Act was issued to the assessee on 25.08.2017, therefore the proceedings reopened u/s 148 of the Act was abated as per 2nd proviso the section 153A of the Act. AO thereafter, in the order dated 30.12.2017 passed u/s 153A r.w.s 143(3) of the Act for the reasons noted in the order made various additions and determined the total income of Rs.4,67,61,580/-. When the....
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....crutiny. Hence, the assessment for A.Y. 2010-11 in the case of the appellant attained finality. Thereafter, search & seizure action u/s 132 of the Act was conducted on the appellant at her premises on 30.03.2016. So it is very clear that on the date of the initiation of search i.e. 30.03.2016, no assessment or reassessment proceedings in the case of appellant was pending and therefore in view of the second proviso to section 153A of the Act, there cannot be any case of assessment or reassessment proceedings for A.Y. 2010-11 getting abated. 5.4 Since the search was conducted at the premises of the appellant, therefore, as per the provisions of section 153A of the Act, the AO was required to issue notice u/s 153A of the Act for the six ass....
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.... result of search. As evident from the assessment order u/s 153A of the Act the AO held that nowhere it was mentioned u/s 153A of the Act that assessment should be based on incriminating material found as a result of search, The AO further held that in view of the fact that the case of the appellant was already re-opened u/s 148 of the Act which got abated on the issuance of notice u/s 153A of the Act therefore the case of the appellant was open for complete scrutiny. 5.6 On thorough consideration of the material on record I find that in the instant case additions made in the assessment order u/s 153A/143(3) of the Act are not based on any incriminating material found as a result of search action at the premises of the appellant. In fact....
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....nd reassessments pending on the date of search shall abate. In this case, admittedly, search was conducted on 30.03.2016 and on the date of search, no assessment or reassessment was pending and it was only subsequent to the search action, notice u/s 148 of the Act was issued on 30.03.2017, and therefore, such reassessment proceedings could not have abated. 5.8 On careful consideration of the material on record, I find that the AO has not pointed out any incriminating material found during the search action relating to AY 2010-11 in the assessment order. In the absence of any incriminating material relating to AY 2010-11 and following the ratio of judgement of the jurisdictional High Court in the cases of CIT (Central-III) vs. Kabul Chawl....