2025 (2) TMI 1849

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....s 'Ld. AO') under section 153A of the Income Tax Act, 1961 [hereinafter referred to as "the Act"] for the Assessment Year 2016- 17. 2. Brief facts of the case are that a search and seizure action under section 132 of the Act was carried out on 14.10.2020 in the case of Shri Manoj Kumar Singh, his associates and various transacting parties. During the search, it was established that Shri Manoj Kumar Singh entered into unaccounted cash transactions with the various persons/entities. The premise locker of assessee was also covered during the search operation. Assessee had originally Income-tax Return for A.Y. 2016-17 on 01.08.2016 declaring income of Rs. 20,11,970/-. The same was processed under section 143(1) of the Act on 17.10.2016 at re....

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....A of the Act, proceedings in case of assessee are going on. The proceedings initiated under section 148 were abated. Notice under section 142(1) of the Act, asking the assessee to furnish details and documents to conclude the assessment proceedings were issued on 28.12.2021. Assessee vide letter received on 17.01.2022 had submitted the calculation and documentary evidence with regard to the gains and transactions in the penny scrip of M/s. Yamini Investments Company Ltd. On completion of proceedings vide assessment order dated 23.03.2022, learned AO made addition of Rs. 86,83,853/- under section 68 of the Act. 3. Against order of learned AO, assessee/appellant filed appeal before the learned CIT(A) which was partly allowed vide order dat....

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.... that learned CIT(A) in Para Nos. 10.7 and 10.8 has observed as under: "10.7 It is clear from the above that no assessment was pending as on date of search and notice u/s 148 was issued after the search and seizure action. Therefore, abatement of proceedings u/s 148 was not correct as per law. It is noted that the appellant herself requested for the abatement of the proceedings u/s 148 in view of the search on her. But such requests made by the assessee cannot change the legal position. It is a well established law that the jurisdiction cannot be conferred by consent or agreement. Now the question before me is that can the AO use other information in his possession while making the assessment u/s 153A in completed assessments where....

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....assessments can be re-opened by the AO in exercise of powers under Sections 147/148 of the Act, subject to fulfillment of the conditions as envisaged/mentioned under sections 147/148 of the Act and those powers are saved." As per clause 14(iv) of the above referred judgment, in the completed assessment cases, the material gathered by the AO from other sources cannot be used to make addition in 153A proceedings if no incriminating material was found or unearthed during the search. In such cases, AO is empowered to reopen the assessments u/s 147/148. 10.8 In the impugned assessment order, it is evident that the addition is not based on any material unearthed during the search operation on the assessee but is based on materia....