Income Tax Act, 1961
Section 2(45), 4, 5, 143(1), 143(2), 143(3), 132,139, 142, 153A(1) and 158B(b) and 153A—Scope under Section 153A—Assessment in case of search or requisition—Assessments/unabated assessments—While in view of the mandate of sub-section (1) of section 153A of the Act, in every case where there is a search or requisition, Assessing Officer is obliged to issue notice to such person to furnish returns of income for the six years preceding assessment year relevant to the previous year in which the search is conducted or requisition is made, any addition or disallowance can be made only on basis of material collected during the search or requisition—Impugned judgment(s) and order(s) passed by High Court taking view that AO has power to reassess return of the assessee not only for the undisclosed income, which was found during search operation but also with regard to material that was available at the time of original assessment does not require any interference—Appeals dismissed.
[Para 7, 15 and 16]
Income Tax— Search and Seizure—Requisition of books and etc—Power of Assessing Officer—Any addition can be made by AO in absence of any incriminating material found during course of search under S. 132 or requisition under S. 132 A of Act, 1961 or not—No addition can be made in respect of the completed assessments in absence of any incriminating material—Once during search undisclosed income is found on unearthing the incriminating material during search, AO would assume jurisdiction to assess or reassess the total income even in case of completed/unabated assessments—The completed/unabated assessments can be re-opened by AO in exercise of powers under Sections 147/148 of the Act, subject to fulfilment of the conditions as envisaged/mentioned under sections 147/148 of the Act and those powers are saved—Therefore, impugned judgment(s) and order(s) passed by High Court taking view that AO has power to reassess return of the assessee not only for the undisclosed income, which was found during the search operation but also with regard to material that was available at the time of original assessment does not require any interference.
[Para 13, 14 and 15]