Omprakash Gupta Vs ACIT (Central)- II (ITAT Indore)
Conclusion: No addition could be made in case of concluded assessments and non abated assessments in absence of an incriminating material discovered during search.
Held: In the assessment order, AO observed that once search was conducted and notice was issued u/s 153A, AO was bound to issue notice to assessee to furnish return for each assessment year falling within 6 assessment years, immediately preceding to the assessment year relevant to the previous year in which search was conducted or requisition was made. Even though assessment order had been passed u/s 143(1A) or 143(3), AO required to reopen those proceedings and reassess total income taking notice of undisclosed income or during the course of search & seizure operation. Additions were made in respect of unexplained, unsecured loans, gifts, on account of foreign travel, on account of unexplained investment in shares and assessment was completed u/s 153A r.w.s. 143(3) for the relevant assessment years. It was held all the assessment years were concluded assessments and non abated assessments and any addition had to be made in respect of those assessment years, there must be an incriminating material. In the present case, there was no incriminating material and therefore, additions made by AO could not survive.
FULL TEXT OF THE ITAT JUDGEMENT
This bunch of appeals filed by different assessees are directed against orders of the CIT(A)-3, Bhopal dated 14.9.2017 for the assessment years 2008-09 to 2012-13. Since the issues are common the appeals are heard together and disposed off by way of common order for the sake of convenience and brevity. First we take up appeal filed by the assessee in IT(SS)A No.277 to 281/Ind/2017 for the A.Yrs. 2008-09 to 2012-13.
IT(SS)A Nos.277 to 281/Ind/2017:
2. The facts are in brief that there was a search conducted in the business premises of the assessee as well as on the other related concerns/business associates on 29.1.2014. Since the various concerns and individuals are interconnected and have business associations, they have been put together under one common name ‘Signature Group’. The assessee is an individual having a business income, rental income and other sources. After conducting the search, the A.O. has issued notices u/s 153A of the Income Tax Act, 1961 (hereinafter called as ‘the Act’) dated 12.9.2014 were issued to the assessee to file the return of income for assessment years 2008-09 to 2013-14. In response to the notice issued by the A.O. u/s 153A of the Act, the assessee has filed return of income for A.Yrs. 2008-09 to 2013-14 on 7.11.2014. The details of the returns of income for A.Y. 2008-09 to 2013-14 are as under:
