The Tax Publishers2013 TaxPub(DT) 0245 (Del-HC) : (2013) 049 (I) ITCL 0530 : (2013) 352 ITR 0493 : (2012) 211 TAXMAN 0453 : (2012) 080 DTR 0169

INCOME TAX ACT, 1961

--Search and seizure--Assessment under section 153A Scope of section 153A whether extends to returns already processed under section 143--There was a search of the assessee's residence and business premises under section 132 of the Act. Pursuant to the search, the assessing officer issued notices under section 153A of the Act and called upon the assessee to file the returns of income for the six years as envisaged in the section. After considering the explanation and details submitted by the assessee, the assessing officer made additions to the income returned in respect of the assessment years under consideration, which included an amount of Rs. 1,50,000 given by the assessee as a loan to one M. The loan was not reflected in the return of income filed by the assessee for the relevant assessment year. Commissioner (Appeals) confirmed the addition. Before the Tribunal it was contended that during the search of the assessee's premises, no document or incriminating material, except the one unsigned undertaking for the loan was found. There was no corroborative material seized in the course of search. The income tax returns for the assessment years 2000-01 to 2005-06 (six years) were filed prior to the search and in the normal course, suo moto disclosing the particulars of the subject additions and these returns stood accepted under section 143(1) of the Act. Since on the date of the initiation of the search, no assessment was pending as they had all abated, the assessing officer has wrongly invoked section 153A of the Act. The assessment contemplated by section 153A is not a de novo assessment and the additions made therein have to be necessarily restricted to the undisclosed income unearthed during the search. The Tribunal completely agreed with the submissions made on behalf of the assessee. Held: ITAT was not right in holding since the returns of income filed by the assessee for all the six years under consideration before the search took place were processed under section 143(1)(a) of the Act, the provisions of section 153A cannot be invoked. The assessing officer has the power under section 153A to make assessment for all the six years and compute the total income of the assessee, including the undisclosed income, notwithstanding that the assessee filed returns before the date of search which stood processed under section 143(1)(a) of the Act.

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