Mridul Commodities (P.) Ltd. v. Dy. CIT

INCOME TAX ACT, 1961

--Search and seizure--Assessment under section 153AUnabated assessments--No incriminating material found during course of search--While framing assessment under section 153A, unabated/concluded assessments cannot be disturbed in the absence of any incriminating material found in the course of search.--In course of assessment under section 153A, AO sought to make addition under section 68 with respect to assessment years 2008-09 and 2009-10 without having any incriminating material found during search. Assessment of assessment year 2008-09 was originally completed under section 143(3) and on the date of search it was a concluded proceeding. Return for assessment year 2009-10 had originally been accepted under section 143(1) and time limit for issuance of notice under section 143(2) had expired, therefore, assessment proceedings got concluded on the date of search. Held: For framing of assessment under section 153A in respect of unabated assessments, the legislature has conferred powers on the AO to just follow the assessments already concluded unless there is any incriminating material found in course of search to disturb the said concluded assessments. Therefore, assessments for assessment year 2008-09 and 2009-10, which were unabated/concluded assessments, on the date of search, could not to be disturbed in the absence of any incriminating material found in course of search.

Income Tax Act, 1961, Section 153A