Case Law Details
Jawahar B. Purohit Vs. Asst. CIT & Ors. (ITAT Mumbai)
Hon’ble Bombay High Court in the case of Continental Warehousing Corporation (Nhava Sheva) Ltd. (supra), wherein considering the judgment of the Special Bench of the Mumbai Tribunal in the case of All Cargo Global Logistics 137 ITD 287(SB) (Mum), considered this issue that, whether there is scope of assessment under section 153A of the Act in respect to completed assessment which is limited only to undisclosed income and undisclosed assets found during the course of search or not? Hon’ble High Court held that on a plain reading of section 153 of the Act it becomes clear that on initiation of the proceedings under section 153A of the Act, it is only the assessment/reassessment proceedings that are pending on the date of search under section 132 of the Act stand abated and not the assessments/reassessments already final for those assessment years which are covered under section 153A of the Act. Hon’ble High Court discussed the CBDT Circular No. 8 of 2003, date 18-9-2003 in 263 ITR (st.) 61 at page 107 wherein CBDT has clarified that on initiation of proceedings under section 153A of the Act the proceedings pending in appeal, revision or rectification proceedings against final assessment shall not abate. It is only because the final assessments do not abate the appeal, revision or rectification pending against final assessments would not abate.
Therefore, Hon’ble High Court rejected the arguments of the Revenue that on initiation of proceedings under section 153A of the Act, the reassessment final for assessment years covered under section 153A of the Act stands abated. Only the pending assessments get revived under section 153A of the Act. Hon’ble High Court further held that once assessment has attained finality, then the assessing officer while passing independent assessment order under section 153A/143(3) of the Act could not disturb the assessment order which has attained finality unless the material gathered in the course of search under section 132/153A of the Act established that the finality attained in the assessment were contrary to the facts unearthed during the course of search.
RELEVANT EXTRACT OF ITAT JUDGMENT
These appeals of different assessee’s are arising out of the different orders of Commissioner (Appeals)-39 Mumbai, in appeal Nos. Commissioner (Appeals)-39/IT-86, 88, 89, 90, 91, 2, 80, 81, 82, 83, 85/2012-13, date 6-9-13, 12-9-2013, 8-11-2012, 1-2-2013. The Assessments were framed by ACIT Center Circle-22, Mumbai for the assessment years 2004-05, 2005-06, 2006-07, 2007-08, 2008-09, 2009-10 & 2010-11 vide different orders dated 21-6-2012 under section 143(3) read with section 153A/C of the Income Tax Act, 1961 (hereinafter ‘the Act’).
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