AI Drafter 
TaxTMI 
TaxTMI 
2024 (4) TMI 735
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....peals) - Central, North-East Region, Guwahati, passed u/s 250 of the Income Tax Act, 1961 (in short 'the Act') even dt. 15/09/2022, for Assessment Year 2014-15 and 2015-16. The assessee has filed cross-objections for both the Assessment Years. 2. The revenue has raised the following grounds of appeal for Assessment Year 2014-15:- "1. That on the facts of the case and in law, the Ld. CIT(A) has erred in deleting the addition of Rs. 3,63,39,605/- made u/s 68 of the IT Act, 1961 on account of unexplained cash credit received from shell/paper companies under the garb of unsecured loan. 2. That on the facts of the case and in law, Ld. CIT(A) has erred in deleting the addition/disallowance of Rs. 9,10,027/- claimed by the ass....
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....sment years are completed and unabated, additions, if any, can be made only on the basis of incriminating material found during the course of search and, therefore, the judgment of the Hon'ble Supreme Court in the case of Principal Commissioner of Income-tax, Central-3 v. Abhisar Buildwell (P.) Ltd. reported in [2023] 149 taxmann.com 399 (SC), is squarely applicable and, therefore, the additions made in the assessment framed u/s 153A/143(3) of the Act for Assessment Year 2014-15 and 2015-16, has rightly been deleted by ld. CIT(A). 4.1. On the other hand, the ld. D/R, vehemently argued supporting the orders of the ld. Assessing Officer for both the Assessment Year and prayed that the additions be upheld. 5. We have heard rival contenti....
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....rch and additions have been made for the completed/unabated assessment years without any reference to incriminating material and the same reads as under:- "As per the provisions of Section 153A, in case of a search under Section 132 or requisition under Section 132A, the AO gets the jurisdiction to assess or reassess the 'total income' in respect of each assessment year falling within six assessment years. However, it is required to be noted that as per the second proviso to Section 153A, the assessment or re-assessment, if any, relating to any assessment year falling within the period of six assessment years pending on the date of initiation of the search under Section 132 or making of requisition under Section 132A, as the case m....
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.... if any, furnished by the assessee as well as the undisclosed income. However, in case during the search no incriminating material is found, in case of completed/unabated assessment, the only remedy available to the Revenue would be to initiate the reassessment proceedings under sections 147/48 of the Act, subject to fulfillment of the conditions mentioned in sections 147/148, as in such a situation, the Revenue cannot be left with no remedy. Therefore, even in case of block assessment under section 153A and in case of unabated/completed assessment and in case no incriminating material is found during the search, the power of the Revenue to have the reassessment under sections 147/148 of the Act has to be saved, otherwise the Revenue would ....
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....ible under the law. For the reasons stated hereinabove, we are in complete agreement with the view taken by the Delhi High Court in the case of Kabul Chawla (supra) and the Gujarat High Court in the case of Saumya Construction (supra) and the decisions of the other High Courts taking the view that no addition can be made in respect of the completed assessments in absence of any incriminating material. In view of the above and for the reasons stated above, it is concluded as under: (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; (ii....