TaxTMI 
TaxTMI 
2023 (4) TMI 292
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....nt quantum, these appeals are heard together and disposed off by this common order for the sake of convenience. 3. The common thread running through the assessee's appeals in all the above four cases is that additions have been made de hors any incriminating material as it is an assessment under section 153A of the Income-tax Act, 1961 (for short 'the Act') pursuant to search. 4. A search & seizure operation and survey operation under section132/132A of the Act was conducted by the Investigation Wing of the Department on 18.11.2016 in Nayyar Group of cases. Assessee's residential premise was also covered. A notice u/s 153A of the Act was issued. 5. In ITA No.8721/Del/2019 (AY 2011-12), the assessee is aggrieved by the addit....
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....documents submitted by the assessee during the course of assessment and it was not that any incriminating material was found. 8. In ITA No.8724/Del/2019 (AY 2015-16), the assessee is aggrieved by the addition of Rs.64,602/-, Rs.2,73,270/- & Rs.1,34,520/- on account of deposit made in the bank account being capital gain on the sale of jewellery, on account of cash transactions & on account of accumulated rental income respectively. Here again, the assessee's plea is same that the addition is made de hors any incriminating material found but from the documents submitted by the assessee during the course of assessment. 9. Ld. Counsel of the assessee pleaded that search has been conducted on 18.11.2016 and the assessee has regularly filed....
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....le High Court of Delhi in the case of Kabul Chawla (supra) squarely apply on the facts of the case. The Hon'ble High Court concluded by holding as under:- "37. On a conspectus of Section 153 A(1) of the Act, read with the provisions thereto, and in the light of the law explained in the aforementioned decisions, the legal position that emerges is as under : i. Once a search takes place under Section 132 of the Act, notice under Section 153 A (1) will have to be mandatorily issued to the person searched requiring him to file returns for six AYs immediately preceding the previous year relevant to the AY in which the search takes place. ii. Assessments and reassessments pending on the date of the search shall abate. T....
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....assessment under Section 153A merges into one. Only one assessment shall be made separately for each AY on the basis of the findings of the search and any other material existing or brought on the record of the AO. Completed assessments can be interfered with by the AO while "making the assessment under Section 153 A 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. Conclusion 38. The present appeals concern AYs, 2002-03, 2005-06 and 2006-07.0n the date of the search the said assessm....