TaxTMI 
TaxTMI 
2026 (7) TMI 1498
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....facts and circumstances of the case and in law, the tribunal has erred in considering the certain incriminating documents have been found and seized during the search proceedings viz. (i) copy of Resolution of Board of Directors held on 26.11.2013 (A-3 to panchnama dated 25.03.2018 page No. 44 to 46), (ii) Escrow Account Agreement dated 03.12.2013 (A-3 to panchnama dated 25.03.2018 page No. 52 to 57), (iii) copy of undertaking given by Aurum Platz Prt. Ltd. to IFCI Ltd. on 03.12.2013 with respect to sale of duplex apartment at "Aurum Platz" (A-3 to panchnama dated 25.03.2018 page No. 71 to 72), (iv) Correspondence of Aurum Venture Pvt. Ltd. with IFCI Ltd. regarding concluded negotiation for the sale of apartment No.6 (A-3 to panchnama dated 25.03.2018 page No. 152) and (v) Correspondence between holding company, Aurum Ventures Pvt. Ltd. and Shri Prasoon, CGM, IFCI regarding the Aurum loan facility of Rs. 115 Crores, wherein it was clearly mentioned at para 4 that the repayment of the loan and interest thereon was to be paid from the income and sale of flats of the "Aurum Platz" Building (A-3 to panchnama dated 25.03.2018 page No. 169 to ....
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.... in law and insofar as the materials which may be recovered in the search and seizure only in the event they are incriminating could be taken into consideration is the settled position in law. In this context reliance is placed on the decision of the Supreme Court in Principal Commissioner of Income Tax Central-3 Vs. Abhisar Buildwell (P) Ltd. (2023) 149 TAXMANN.COM 399 (SC). 5. Our attention is drawn to an order dated 13 March 2026 passed by this Bench on Income Tax Appeal No. 996 of 2024, The Principal Commissioner of Income Tax Central-4 Vs. Maneesh Pharmaceuticals Ltd. in which this Court in similar context had made the following observations referred to this decision: 1. These appeals under Section 260A of the Income Tax Act, 1961 ('the Act') filed by Revenue challenge an order dated 25th October 2021 passed by the Income Tax Appellate Tribunal (Tribunal) whereby the appeals filed by the Department are rejected confirming the orders passed by the Commissioner of Income Tax (Appeals) [CIT-(A)]. Assessment Year in question in Appeal No. 939 of 2019 is A.Y. 2006-07. Insofar as Appeal No. 996 of 2024 and Appeal No. 122 of 2025 are concerned, the assessment years in que....
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....see. 3. Aggrieved by such order passed by the Assessing Officer, the assessee has filed an appeal before the Commissioner of Income Tax (Appeals) [CIT(A) for short]. The CIT(A) passed an order dated 21st May 2018 partly allowing the appeal of the assessee whereby the additions which were made by the Assessing Officer were deleted on account of ALP adjustments and disallowance of other items while observing that the additions were not based on any incriminating material found from the search relying on the decision of the Tribunal in the case of All Cargo Global Logistics Limited Vs Deputy Commissioner of Income Tax, Central Circle-44 [2012] 33 CCH 0294 (Mum) (SB), and also the decision of this Court in the case of CIT Vs. Continental Warehousing Corporation (374 ITR 645). The Department being aggrieved by the orders passed by the CIT(A) approached the Tribunal in which the impugned orders have been passed. On such backdrop the present appeals are filed. 4. At the outset Mr. Suresh Kumar, learned counsel for Revenue, would not dispute that no incriminating material was found from the search under Section 132 of the Act against assessee. He also fairly submitted tha....
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....va) Ltd. (2015)374 ITR 645/58 taxmann.com 78/232 Taxman 270 (Bom) upholding the view of the Special Bench of the Tribunal in A1-Cargo Global Logistics Ltd. Consequently, once an assessment has attained finality for a particular year i.e. it is not pending then the same cannot be subject to tax in proceedings under Section 153A of the Act. This of course would not apply if incriminating materials are gathered in the course of search or during proceedings under Section 153A of the Act which are contrary to and/or not disclosed during regular assessment proceedings. 7. In view of the above, on issue of jurisdiction itself the issue stands concluded against the revenue by the decision of this Court in Continental Warehousing Corpn. (Nhava Sheva) Ltd. (supra). In the appeal before us, the revenue has made no grievance with regard to the impugned order of the Tribunal holding that in law the proceedings under Section 153A of the Act are without jurisdiction. This in view of the fact that no assessment were pending, so as to abate nor any incriminating evidence was found. The grievance of the revenue is only with regard to finding in the impugned order on the merits of t....
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....om 399 (SC) in which the Supreme Court laid down the following clear position in law : "14. In view of the above and for the reasons stated above, it is concluded as under: (i) that in case of search under section 132 or requisition under section 132A, the AO assumes the jurisdiction for block assessment under Section 153A; (ii) all pending assessments/reassessments shall stand abated; (iii) in case any incriminating material is found/unearthed, even, in case of unabated/completed assessments, the AO would assume the jurisdiction to assess or reassess the 'total income' taking into consideration the incriminating material unearthed during the search and the other material available with the AO including the income declared in the returns; and (iv) in case no incriminating material is unearthed during the search, the AO cannot assess or reassess taking into consideration the other material in respect of completed assessments/unabated assessments. Meaning thereby, in respect of completed/unabated assessments, no addition can be made by the AO in absence of any incriminating material found during the course of search under section 132 or re....
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....ons are made in passing or that they are not binding on us because the essential controversy before the Bench was somewhat different. He urges that was only in relation to the legality and validity of the order of the Commissioner under section 263 of the IT Act. Had that been the case, the Division Bench was not required to trace out the history of section 153A of the IT Act and the power that is conferred thereunder. When the Revenue argued before the Division Bench that the power under section 153A can be invoked and exercised even in cases where the second proviso to sub-section (1) is not applicable that the Division Bench was required to express a specific opinion. The provision deals with those cases where assessment or reassessment, if any, relating to the assessment years falling within the period of six assessment years referred to in sub-section (1) of section 153A were pending. If they were pending on the date of the initiation of the search under section 132 or making of requisition under section 132A, as the case may be, they abate. It is only pending proceedings that would abate and not where there are orders made of assessment or reassessment and which are ....
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....ments/ unabated assessments, no addition can be made by Assessing Officer in absence of any incriminating material found during course of search under Section 132 or requisition under Section 132A. It is also, however, held that completed/ unabated assessments can be reopened by Assessing Officer in exercise of powers under Section 147/148 subject to fulfillment of conditions as envisaged under Section 147/148 and those powers were saved. 7. Thus, the view of this Court in Commissioner of Income Tax vs. Continental Warehousing Corporation (supra) has found approval of the Supreme Court. In view of the authoritative pronouncement of the Supreme Court in Principal Commissioner of Income-tax, Central-3 Vs. Abhisar Buildwell (P.) Ltd. (supra), the question of law as raised by the revenue would not arise for consideration. However, it is clarified that the completed/unabated assessments can be reopened by the Assessing Officer in exercise of powers under Section 147/148 of the Act subject to fulfillment of conditions as envisaged under the said provisions and as may be permissible in law. All contentions of the parties in that regard are expressly kept open. 9. The afo....