TaxTMI 
TaxTMI 
2024 (9) TMI 1758
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....the sake of perspective, the basic additions to the income are mentioned in tabular manner as under: Bhagya Kalita & Co. Company from which Loans taken AY Amount (in Rs. ) Akruti Securities Pvt Ltd 2015-16 1,80,00,000 Arbitrage Securities Private Limited 2015-16 1,50,00,000 Orchid Finlease Pvt Ltd 2015-16 1,50,00,000 Arbitrage Securities Private Limited 2016-17 25,00,000 Orchid Finlease Pvt Ltd 2016-17 50,00,000 Bhagya Kalita & Co. AY Interest Expense incurred against Loans (in Rs. ) 2015-16 11,16,864 2016-17 50,06,849 2017-18 47,20,000 2018-19 41,20,376 2019-20 27,00,000 1.2. It is pertinent to mention that the information relied on by the Assessing Officer (hereinafter referred to as ld. 'AO') for the purposes of making the impugned additions emanated from a survey operation carried out u/s 133A of the Act and not u/s 132/132A of the Act. It has been recorded that amounts as mentioned in the tables above were received from M/s. Akruti Securities Pvt. Ltd., Arbitrage Securities Private Limited and Orchid Finlease Pvt. Ltd. The premises of these companies w....
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....the authorities below and averred that the search operation was a composite operation during the course of which some premises were covered u/s 132 of the Act and others were covered u/s 133A of the Act. Accordingly, he argued that the assessment was valid. 3. We have carefully considered the orders of ld. AO/CIT(A), the averments of ld. AR/DR and the text of the judgment in the case of Abhisar Buildwell (P.) Ltd. (supra). The Hon'ble Apex Court in the above-mentioned case has clarified that it is only incriminating material recovered during the course of action u/s 132 of the Act or requisition u/s 132A of the Act, that would be relevant for framing an assessment u/s 153A of the Act. The following extract from this judgment will make things clear: "■ As per the provisions of section 153A, in case of a search under section 132 or requisition under section 132A, the Assessing Officer 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 reassessment, if any, relating to any....
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....as to be saved, otherwise the revenue would be left without remedy. [Para 11] ■ If the submission on behalf of the revenue that in case of search even where no incriminating material is found during the course of search, even in case of unabated/completed assessment, the Assessing Officer can assess or reassess the income/total income taking into consideration the other material is accepted, in that case, there will be two assessment orders, which shall not be permissible under the law. At the cost of repetition, it is observed that the assessment under section 153A is linked with the search and requisition under sections 132 and 132A. The object of section 153A is to bring under tax the undisclosed income which is found during the course of search or pursuant to search or requisition. Therefore, only in a case where the undisclosed income is found on the basis of incriminating material, the Assessing Officer would assume the jurisdiction to assess or reassess the total income for the entire six years block assessment period even in case of completed/unabated assessment. As per the second proviso to section 153A, only pending assessment/reassessment shall stand abate....
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....sessments. Meaning thereby, in respect of completed/unabated assessments, no addition can be made by the Assessing Officer in absence of any incriminating material found during the course of search under section 132 or requisition under section 132A. However, the completed/unabated assessments can be reopened by the Assessing Officer in exercise of powers under section 147/148, subject to fulfilment of the conditions as envisaged/mentioned under section 147/148 and those powers are saved." 4.1. Respectfully following the directions in the extracted portion of the above judgment [para 14 (supra)], it deserves to be recorded in this order that the ld. AO needs to consider appropriate action u/s 147/148 of the Act keeping in view the express provisions contained in Section 150 of the Act. For the sake of reference, the said section deserves to be reproduced as under: "(1) Notwithstanding anything contained in section 149, the notice under section 148 may be issued at any time for the purpose of making an assessment or reassessment or recomputation in consequence of or to give effect to any finding or direction contained in an order passed by any authority in any proceeding....