Friday, 10 August 2012

S. 153A applies if incriminating material is found even if assessments are completed

CIT vs. Anil Kumar Bhatia (Delhi High Court)

Pursuant to a search u/s 153A, the AO passed an assessment order in which he assessed various amounts. The Tribunal (1 ITR (Trib) 484) upheld the assessee’s appeal on the ground that (a) no “incriminating material” was found in the course of search and (b) as ROIs for the said 6 years disclosed the particulars of the subject additions and these had been accepted by the AO u/s 143(1), no assessment was pending so as to have abated. It was held that s. 153A was not a de novo assessment or a normal/ regular assessment and the additions made therein have to be necessarily restricted to the undisclosed income unearthed during the search. On appeal by the department to the High Court, HELD reversing the Tribunal:

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