TaxTMI 
TaxTMI 
2025 (3) TMI 2042
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....ter dated 28.01.2017. Under this additional ground of appeal, assessee has pleaded that ld. CIT(A) has erred in confirming the addition of Rs. 1,09,50,000/- ( under Section 68) and Rs. 3,28,500/- (under Section 69) as unexplained expenditure are uncalled for because no incriminating material has been found during the course of search relevant to such additions. In substance, the plea taken under Ground No. 2 and 3 also revolves around this additional ground. Thus, the whole issue involved in the present appeal is whether any addition in the absence of any seized material is sustainable or not. 3. The brief facts of the case are that assessee has filed its regular return of income under Section 139(1) on 06.11.2006. A search under Section 132(1) was carried out on M/s Surya Nectar and Parabolic Group of cases on 17.09.2010. The assessee was also one of the concerns which was covered under search operation. Apart from these business premises, the residential premises of the Director was also covered under search. The AO has issued a notice under Section 153A and in response to that notice, assessee has filed its return of income on 10.09.2012 declaring total income at 'nil'. A not....
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....nies but at the heading of the page, expression written is "Vineet/PEPL/PDL". The AO has observed that PEPL represent 'Parabolic Estates Pvt. Ltd.' and PDL represent 'Parabolic Drugs Ltd.'. Thus, this document has no concern with 'PNG Trading Pvt. Ltd.' i.e. the assessee. Therefore, in view of the latest decision of the Hon'ble Supreme Court in the case of Abhisar Buildwell Pvt. Ltd. 454 ITR 212, the addition is not sustainable. 7. The ld. CIT DR on the other hand relied upon the orders of Revenue Authorities. She was unable to controvert the submissions made by the ld. Counsel for the assessee. She could not drew our attention towards any specific document which was found during the course of search and exhibits alleged bogus share application money received by the assessee. She drew our attention towards the finding of the CIT(A) in paragraph No. 6.1. 8. We have duly considered the rival contentions and gone through the record carefully. There is no dispute with regard to the fact that before the search, time limit to issue notice under Section 143(2) for scrutinizing the returns of assessment year 2005-06 as well as 2006-07 has expired. During the course of search, no ....
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.... word 'reassess' to completed assessment proceedings. vi. Insofar as pending assessments are concerned, the jurisdiction to make the original assessment and the assessment under Section 153A merges into one. Only one assessment shall be made separately for each AY on the basis of the findings of the search and any other material existing or brought on the record of the AO. vii. Completed assessments can be interfered with by the AO while making the assessment under Section 153A only on the basis of some incriminating material unearthed during the course of search or requisition of documents or undisclosed income or property discovered in the course of search which were not produced or not already disclosed or made known in the course of original assessment. Conclusion 38. The present appeals concern AYs, 2002-03, 2005-06 and 2006-07. On the date of the search the said assessments already stood completed. Since no incriminating material was unearthed during the search, no additions could have been made to the income already assessed. 39. The question framed by the Court is answered in favour of the Assessee and against the Revenue. ....
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....to consideration the incriminating material collected during the search and other material which would include income declared in the returns, if any, furnished by the assessee as well as the undisclosed income. However, in case during the search no incriminating material is found, in case of completed/unabated assessment, the only remedy available to the Revenue would be to initiate the reassessment proceedings under sections 147/48 of the Act, subject to fulfilment of the conditions mentioned in sections 147/148, as in such a situation, the Revenue cannot be left with no remedy. Therefore, even in case of block assessment under section 153A and in case of unabated/completed assessment and in case no incriminating material is found during the search, the power of the Revenue to have the reassessment under sections 147/148 of the Act has to be saved, otherwise the Revenue would be left without remedy. 12. 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 AO can assess or reassess the income/total income taking into consideration the ....