Case Law Details
PCIT Vs Bhadani Financiers Pvt. Ltd. (Delhi High Court)
Conclusion: Completed assessments could be interfered with by AO while making the assessment under Section 153 A 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. No addition could be made under Section 153A as the cases of respondents were of non-abated assessments.
Held: Revenue contended that ITAT had erred in confirming the orders of CIT (Appeal) and directing AO to delete the additions made under Section 68 on account of unexplained credits and under Section 69C on account of unexplained expenses. Revenue further contended that incriminating documents or materials had been found during the course of the searches and consequently by virtue of Section 153A, AO had to assess the total income of six years under Section 153A. Since the assessments were not completed under Section 143(3), consequently, prior to the date of search i.e. 18th June, 2013, the assessment of the respondents had not attained finality and ITAT had erred in restricting the applicability of the section u/s 153A in respect of completed assessment, only to undisclosed income and assets detected during search u/s 132. It was held that in the case of CIT vs Kabul Chawla, (2016) 380 ITR 573, the Court held that the completed assessments could be interfered with by AO while making the assessment under Section 153 A 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. Since assessment of the respondents had attained finality prior to the date of search and no incriminating documents or materials had been found and seized at the time of search. Consequently, no addition could be made under Section 153A as the cases of respondents were of non-abated assessments.
FULL TEXT OF THE JUDGMENT/ORDER OF DELHI HIGH COURT
1. Present appeals have been filed under Section 260A of the Income Tax Act, 1961 (for short ‘the Act’) challenging the order dated 30th April, 2019 passed by the Income Tax Appellate Tribunal (for short ‘ITAT’) for Assessment Years 2008-09, 2009-10 and 2010-11.
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