Implementation of the judgment of the Hon’ble Supreme Court in the case of Pr. CIT (Central-3) v/s Abhisar Buildwell Pvt. Ltd. (Civil Appeal No. 6580 of 2021)-Instruction

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....K. Paints (Overseas) Ltd. = 2023 (5) TMI 373 - SC ORDER delivered a judgement on 25.04.2023 and dealt with the same issue as was in the case of Abhisar Buildwell case in regard to section 153C of the Act. The Hon'ble Supreme Court in the last paragraph of the judgement held that, "However, so far as the prayer made on behalf of the Revenue to permit them to initiate the reassessment proceedings is concerned, it is observed that it will be open for the revenue to initiate the reassessment proceedings in accordance with law and if permissible under the law." 3. Background: Notices under section 153A were issued for block period (six assessment years prior to year of search) and orders were passed considering incriminating material and other material available with the Assessing Officer (hereinafter referred to as the AO). Further, for a search initiated or requisition made after 1.4.2017, notices for four more years (7th to 10th) could also be issued, if the income represented in the form of asset, which has escaped assessment amounts to or is likely to amount to fifty lakh rupees or more in the relevant assessment year. In some cases, orders were passed considering only other ....

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.... 7.1 Pending/abated assessments: The AO would be required to ascertain assessments falling in the category of assessments that became abated on the date of search or requisition. In such cases, if any proceedings initiated or any order of assessment or reassessment have been annulled in appeal or in any other legal proceedings the same shall stand revived from the date of receipt of order of annulment as per provisions of section 153A(2) of the Act, and AO would need to take necessary action as per provisions of section 153A(2) read with section 153(8) of the Act, in respect of such pending/abated assessments. Provisions of Section 153A(2) and Section 153(8) of the Act are reproduced as hereunder for ready reference: Section 153A(2) "[(2) If any proceeding initiated or any order of assessment or reassessment made under sub-section (1) has been annulled in appeal or any other legal proceeding, then, notwithstanding anything contained in sub-section (1) or section 153, the assessment or reassessment relating to any assessment year which has abated under the second proviso to sub-section (1), shall stand revived with effect from the date of receipt of the order of such annul....

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.... the currently applicable procedure for reopening as given in para 7.2.1, above. 7.2.3 In all cases where the decisions of appellate authorities rendered after the Apex Court judgement in the Abhisar Buildwell case dated 24.04.2023 are inconsistent with the same necessary action may be taken to file Miscellaneous Application (MA) and Notice of Motion (NoM) to the ITAT and High Court, respectively, requesting the review of the decision in line with the Abhisar judgement, with a prayer of condonation of delay, wherever necessary. It is brought to attention that the time limit for filing Miscellaneous Application before ITAT is 6 months from the end of the month in which order is passed by the ITAT, as per section 254 of the Act. On receipt of the decision of the Hon'ble ITAT/High Court, as the case may be, necessary action as per law and extant instruction should be taken. Suggestive template for Miscellaneous Application and Notice of Motion is attached for reference purpose. The facts of the case will be required to be mentioned in the Miscellaneous Application or Notice of Motion. 8. Procedure required to be followed by the field formations to comply with the Supreme Cour....

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.............. in the light of Hon'ble Supreme Court Judgement in the Case of Pr.ClT (Central)-3 vs Abhisar Buildwell Pvt Ltd. Civil Appeal No. 6580 of 2021 dated 24.04.2023. Madam/Sir, Refer to the appeal in the Case of ……………………………………………… Order dated:.................. 2. The Hon'ble Apex Court vide the above-mentioned judgement in the Case of Pr.ClT (Central)-3 vs Abhisar Buildwell Pvt Ltd. Civil Appeal No. 6580 of 2021 dated 24.04.2023, has held that i) that in case of search under Section 132 or requisition under Section 132A, the AO assumes the jurisdiction for block assessment under section 153A; ii) all pending assessments/reassessments shall stand abated; iii) in case any incriminating material is found/unearthed, even, in case of unabated/completed assessments, the AO would assume the jurisdiction to assess or reassess the 'total income' taking into consideration the incriminating material unearthed during the search and the other material available with the AO including the income declared in the returns; and iv) in case no incrimina....