Concluded assessment/ reassessment cannot be disturbed if no incriminating material found during search

PCIT Vs Delhi International (Karnataka High Court)

Facts- Assessment orders were passed u/s 143(3) read with 153A, in consequence to a search and seizure operation conducted at the premises of the assessee. The AO made certain additions and demanded tax thereon. The said assessment orders were challenged by the assessee before the Commissioner (Appeals), the said appeals came to be partly allowed. Hence, the Revenue as well as the assessee both preferred appeals before the Tribunal. The Tribunal allowed the appeals preferred by the assessee and quashed the assessment orders passed under Section 143 (3) read with 153A of the Act dismissing the appeals filed by the Revenue. Being aggrieved, the Revenue has preferred these appeals.

Conclusion- Thus, it is clear that the AO while passing the order under Section 153A read with Section 143[3] of the Act, ordinarily cannot disturb the assessment/reassessment order which has attained finality, unless the materials gathered in the course of the proceedings establishes that the finalized assessments are contrary to the material unearthed during the course of 153A proceedings. Even in case of a searched person, the same reason would hold good.

FULL TEXT OF THE JUDGMENT/ORDER OF KARNATAKA HIGH COURT

Since common and akin issues are involved in these appeals, they are heard together and disposed of by this common judgment.

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