TaxTMI 
TaxTMI 
2026 (3) TMI 1031
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....er the Income Tax Appellate Tribunal was legally justified in holding that the assessment order did not abate? (ii) Whether consequent to fresh assessment order for Assessment Year 2006-07 being passed on 26.12.2011, the earlier assessment order (dated 29.12.2008) stand re-opened and merged with the subsequent assessment order? 2. Admit. Issue Notice. Mr. Indruj Singh Rai, learned Senior Standing Counsel for the Department-respondent accepts the notice. 3. Since the controversy in hand lies in a very narrow compass and the issue is covered by judgment of this Court rendered in the case of Commissioner of Income Tax v. Anil Kumar Bhatia reported in (2013) 352 ITR 493 so also by the judgment of Hon'ble the Supreme Court rendere....
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....e did not find favour with the Tribunal and the Tribunal rejected appellant's appeal vide its impugned order dated 16.12.2024. 9. Mr. Deepankar Kumar, learned counsel for the appellant argued that maybe the issue was not properly raised and argued before the Tribunal and it was argued at the behest of the appellant that the assessment order stood abated, but the fact situation and legal position is that once a fresh assessment order was passed for the block assessment period for the very same Assessment Year (2006-07), the earlier assessment made on 29.12.2008 stood re-opened and the same got merged in the subsequent order dated 26.12.2011, passed under Section 153A of the Act of 1961. 10. He argued that if the correct legal position ....
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....4. Heard learned counsel for the parties. 15. In the case of Anil Kumar Bhatia (supra), this Court has observed thus:- "22. Now, there can be cases where at the time when the search is initiated or requisition is made, the assessment or reassessment proceedings relating to any assessment year falling within the period of the six assessment years mentioned above, may be pending. In such a case, the second proviso to sub-section (1) of section 153A says that such proceedings "shall abate". The reason is not far to seek. Under section 153A, there is no room for multiple assessment orders in respect of any of the six assessment years under consideration. That is because the Assessing Officer has to determine not merely the undisclos....
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....ve been passed determining the assessee's total income and such orders are subsisting at the time when the search or the requisition is made, there is no question of any abatement since no proceedings are pending. In this latter situation, the Assessing Officer will reopen the assessments or reassessments already made (without having the need to follow the strict provisions or complying with the strict conditions of sections 147, 148 and 151) and determine the total income of the assessee. Such determination in the orders passed under section 153A would be similar to the orders passed in any reassessment, where the total income determined in the original assessment order and the income that escaped assessment are clubbed together and as....
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....nd tax the "undisclosed" income too at the normal rate of tax as against any special rate. Thus, after introduction of Section 153-A and in case of search, there shall be block assessment for six years. Search assessments/Block assessments under Section 153-A are triggered by conducting of a valid search under Section 132 of the 1961 Act. The very purpose of search, which is a prerequisite/trigger for invoking the provisions of Sections 153-A/153-C is detection of undisclosed income by undertaking extraordinary power of search and seizure i.e. the income which cannot be detected in ordinary course of regular assessment. Thus, the foundation for making search assessments under Sections 153-A/153-C can be said to be the existence of incrimina....
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.... years block assessment period even in case of completed/unabated assessment. As per the second proviso to Section 153-A, only pending assessment/reassessment shall stand abated and the AO would assume the jurisdiction with respect to such abated assessments. It does not provide that all completed/unabated assessments shall abate. If the submission on behalf of the Revenue is accepted, in that case, the second proviso to Section 153-A and sub-section (2) of Section 153-A would be redundant and/or re-writing the said provisions, which is not permissible under the law." 17. In light of the above quoted portion of the judgment of this Court and Hon'ble the Supreme Court and on perusal of the scheme of Section 153A of the Act of 1961, we are....