AI Drafter 
TaxTMI 
TaxTMI 
2026 (5) TMI 108
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....sessee was subject to a search under Section 132 of the Act in connection with M/s. Skanray Technology Pvt. Ltd., which included a search at the residence of the assessee on 6 November 2019. For Assessment Year 2015-16, the assessee filed a return of income under Section 139(1) on 31 October 2015 declaring a total income of Rs. 8,06,57,320. This return was selected for scrutiny and resulted in an assessment order under Section 143(3) on 28 November 2017 at the same amount. 3. During the survey proceedings, several group entities were also covered under Section 133A of the Act. Various incriminating documents, as recorded in the Panchanama dated 7 November 2019 and 21 November 2019, were found and seized during the search. These documents, identified as belonging to the assessee, surfaced in connection with the search on Skanray Technology Pvt. Ltd. The Assessing Officer (AO), being the same AO for Skanray Technology Pvt. Ltd., determined that the documents pertained to the assessee. Consequently, a notice under Section 153C of the Act was issued on 18 February 2021. 4. The assessee reiterated the same return, which led to the passing of an assessment order under Section 153C ....
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....rder dated 30 August 2024 in ITA No. 872/Bang/2024 for AY 2014- 15, the ITAT Bangalore, at paragraph No. 7, held that the year under consideration is unabated/completed assessment year which was initiated in consequence to search proceedings carried out in the case of Skanray Technologies Private Limited. The coordinate bench further held that it has been settled by various Honourable High Court's including the jurisdictional High Court that the completed assessment cannot be disturbed in absence of any incriminating material/documents where the assessment / reassessment can be disturbed with respect to abated assessment years. The coordinate bench referred to the decision of the Honourable jurisdictional High Court in case of CIT versus Lancy construction 237 Taxman 728. Further the coordinate bench noted that the proceedings under section 153C of the Act have been initiated from the financial statements of various companies of the assessee and his associate concern has received loan from those companies which are deemed divided under section 2 (22) (e ) of the act. The coordinate bench referred to paragraph No. 10.1 of the order of the learned assessing officer where these facts ....
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....se for AY 2014-15. Consequently, the CIT(A) granted relief to the assessee for all three relevant assessment years. Thus the ld. AO is in appeals. 11. The learned AO has raised the following grounds of appeal: - i. On the facts and in the circumstances of the case and in law, the learned CIT - A has erred in holding that the panchnama showing the warrant of authorization issued in the name of M/s Skanray technologies Private Limited can be considered a warrant issued in the case of Arun Kumar Pillai, merely because the name of Arun Kumar Pillai appears in the address details of the premises searched, thereby directing the assessment under section 153A instead of section 153C, contrary to the statutory mandate and established principles governing search and seizure under the income tax act. ii. On the facts and in the circumstances of the case and in law the learned CIT - A has erred in holding that no material of incriminating nature was found, ignoring the documents seized during the search action which revealed shareholding of the assessee in various companies and such information were not disclosed by the assessee in his income tax return filed for the relev....
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....oner of Income-tax, Central-3 vs. Abhisar Buildwell (P.) Ltd. [2023] 149 taxmann.com 399 (SC)/[2023] 293 Taxman 141 (SC)/[2023] 454 ITR 212 (SC)[24-04-2023] applies to the facts of the case. For making assessment u/s. 153A of the Act, the completed assessments are required to be disturbed only when there is incriminating material found during search. This is the mandate of the Hon'ble Supreme Court in the case of Abhisar Buildwell P. Ltd. [Supra]. 15. Before us the assessment year 2015 - 16, 2016 - 17 and 2017 - 18 were also part of concluded assessments in view of the date of search under section 132 of the Act is 6 November 2019. Further the addition is made with respect to the deemed dividend and the coordinate bench has categorically held that when the details of the loan given by the various group companies to the assessee or his concern are already disclosed in the balance sheet, it cannot be said that same were not disclosed earlier before the assessing officer. It was held that these are disclosed material already in the audited accounts. 16. As there is absence of incriminating material found during the course of search, as held by the Coordinate Bench in assessee's ....