2026 (1) TMI 1319

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..../s 153A of the Act pertaining to Assessment Year 2018-19. 2. Brief facts of the case are that assessee company is a firm, engaged in the business of manufacture of tobacco products and derived income from Profits and gains from business and from capital gain/loss and filed its return of income on 28.09.2018, declaring income of INR 1,09,82,630/-. The case was selected for scrutiny under CASS for following two issues:- (i) ICDS compliance and adjustment (ii) income u/s 56(2)(x) 3. Thereafter, statutory notices u/s 143(2)9 and 142(1) of the Act were issued from time to time. After considering the submission made in response to the notices, order passed u/s 143(3) of the Act dated 16.02.201 wherein addition of INR 2,32,....

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.... despite of this fact, since the AO had proceeded and completed the assessment proceedings and passed the assessment order u/s 143(3) dated 16.02.2021 therefore, the said order was held as annulled by Ld.CIT(A). 6. Thereafter, ld. CIT(A) vide impugned order dated 19.12.2024 passed in the appeal filed by the assessee against the assessment order passed u/s 153A dated 22.12.2021, observed that though the order passed u/s 143(3) was annulled however, the issue of addition u/s 56(2)(x) of the Act, could be examined in the proceedings u/s 153A of the Act and therefore, he confirmed the addition. 7. Aggrieved by the said order, assessee filed the present appeal before the Tribunal wherein the assessee has raised following grounds of appeal:....

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.... of the Act on 06.01.2021 and therefore, the proceedings pending as on the date of initiation of search sought abated. Even though the AO has proceeded to complete the assessment and made the additions u/s 56(2)(x) of the Act. It is further observed that Ld. CIT(A) in first appeal vide order dated 04.01.2024 annulled the said order passed u/s 143(3) of the Act. However, in the subsequent order passed u/s 153A dated 22.12.221, the AO has again made the addition of INR 2,32,89,790/- without making any discussions/observations with respect to the additions so made and simply added the same in the computation of income by observing "adjustment made in earlier order u/s 143(3) r.w.s. 147 r.w.s. 153A r.w.s. 153C of the Act". 9. It is a settled....