TaxTMI 
TaxTMI 
2023 (7) TMI 460
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....order passed by the Income Tax Appellate Tribunal (hereinafter referred to as the 'Tribunal') in similar type of matters. Tax Appeal No.88 of 2023 is filed against the order dated 26.08.2022 passed by the Tribunal in ITA No. 288/RJT/ 2015 for Assessment Year 2006-2007, whereas, Tax Appeal No.205 of 2023 is filed against the order dated 26.08.2022 passed by the Tribunal in ITA No.340/RJT/2015 for the Assessment Year 2005-2006. 3. As the issue involved in both the appeals is similar, learned Standing Counsel appearing for the appellant Revenue requested that both the appeals be heard together. 4. For the sake of convenience, the facts as narrated in Tax Appeal No.88 of 2023 are taken into consideration. 4.1. The original Assessment O....
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....lding that any addition during the assessment u/s. 153A has to be confined to the incriminating material found during the course of search u/s. 132(1) of the Act? (ii) Whether the Hon'ble Tribunal has erred in not appreciating that Sec. 153A requires a notice to be issued requiring the assessee to furnish his return of income in respect of each assessment year falling within six assessment years and to assess or re-assess the total income of those six assessment years? (iii) Whether the Hon'ble Tribunal has erred in not appreciating that while computation of undisclosed income of the block period u/s. 158BB was not be made on the basis of evidence found as a result of search or requisition of books of accounts, the....
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....r the appellant Revenue has fairly submitted that now the SLP preferred by the Revenue against the order passed in Saumya Construction (supra) is dismissed and the Hon'ble Supreme Court has passed an order in group of appeals filed by the Revenue in the case of Principal Commissioner of Income Tax, Central-3 vs. Abhisar Buildwell P. Ltd. 7. We have considered the submissions canvassed by learned Standing Counsel appearing for the appellant Revenue. It is pertinent to note that this Court has recently passed an order on 05.05.2023 in Tax Appeal No.283 of 2023, wherein also similar type of substantial questions of law were proposed by the Revenue and this Court, after considering the decision rendered by the Hon'ble Supreme Court in the ca....
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.... available on record including the material found during the search and make assessment of 'total income'. While some High Courts had agreed with the said proposition, other High Courts took the view that if no assessment proceedings are pending on the date of initiation of search, the Assessing Officer can consider only such incriminating material found during the search and it is not permissible for the Assessing Officer to consider any other material derived from any other source. 4.1 The supreme court in Abhisar Buildwell P. Ltd. (supra) answered the question as to whether in respect of completed assessment/unabated assessment, the jurisdiction of the Assessing Officer to make assessment is confined to incriminating material fo....
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.... of Kabul Chawla (supra), the Delhi High Court, while considering the very issue and on interpretation of Section 153A of the Act, 1961, has summarised the legal position as under: Summary of the legal position 38. On a conspectus of Section 153A(1) of the Act, read with the provisos 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 153A(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 ....
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....ssessment and the 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. vii. 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." 4.5 The decision of Saumya Construction (supra) of Gujarat High Court was also quoted for its paragraph Nos. 15 an....