MANU/SC/0434/2023
IN THE SUPREME COURT OF INDIA
Civil Appeal Nos. 6580 of 2021, 4264 of 2018, 2648 of 2020, 6585 of 2021, Civil Appeal No. 3044 of 2023 (Arising out of SLP (C) No. 8453 of 2023 (Arising out of Dairy No. 20983/2020)), Civil Appeal No. 3045 of 2023 (Arising out of SLP (C) No. 8454 of 2023 (Arising out of Dairy No. 22709/2020)), Civil Appeal No. 6593 of 2021, Civil Appeal No. 3043 of 2023 (Arising out of SLP (C) No. 6063 of 2022), Civil Appeal Nos. 9097 of 2022, 741 of 2023, 6582 of 2021, 721 of 2020, 6611 of 2021, R.P. (Civil) No. 223 of 2023 in Civil Appeal No. 4484 of 2018 (Dairy No. 25308/2020), Civil Appeal Nos. 9100 of 2022, 9106 of 2022, 9111 of 2022, 565-566 of 2023, 567-568 of 2023, Civil Appeal No. 824 of 2023 (Arising out of SLP (C) No. 2110 of 2023), Civil Appeal Nos. 541 of 2023, 540 of 2023, 14702 of 2015, 17533 of 2017, 6596 of 2021, 7028 of 2021, 7029 of 2021, 6610 of 2021, 7030 of 2021, 6608 of 2021, 6594 of 2021, 7338 of 2019, 6609 of 2021, 6605 of 2021, 1505 of 2020, 734 of 2020, 7016 of 2021, 7017 of 2021, 7015 of 2021, 6584 of 2021, 6589 of 2021, 7026 of 2021, 9098-9099 of 2022, 3053 of 2018, 7014 of 2021, 6583 of 2021, 7027 of 2021, 6899 of 2021, 15617 of 2017, 10267 of 2017, 7738-7739 of 2021, 7736-7737 of 2021, 7732-7735 of 2021, 10266 of 2017, 10268 of 2017 and 7740-7743 of 2021
Decided On: 24.04.2023
Appellants: Principal Commissioner of Income Tax, Central-3 Vs. Respondent: Abhisar Buildwell P. Ltd.
Hon'ble Judges/Coram:
M.R. Shah and Sudhanshu Dhulia JUDGMENT
M.R. Shah, J.
1. As common question of law and facts arise in this group of appeals, they are being disposed of by this common judgment and order.
Civil Appeal No. 6580 of 2021 and other connected appeals as mentioned above have been preferred by the Revenue. However Civil Appeal No. 15617 of 2017 and other allied appeals as mentioned above have been preferred by the respective Assessees challenging the order passed by the respective High Courts taking the view that in case any incriminating material is found during search then even completed assessments can be assessed or reassessed taking into consideration the incriminating material and other material in possession of the Assessing Officer.
1.1. For the sake of convenience, Civil Appeal No. 6580 of 2021 filed by the Revenue be treated and considered as the lead matter.
2. The core issue involved in the present batch of appeals is the scope of assessment Under Section 153A of the Income Tax Act, 1961 (hereinafter referred to as the 'Act, 1961'). According to the Revenue, the Assessing Officer (hereinafter referred to as the 'AO') is competent to consider all the material that is available on record, including that found during the search, and make an assessment of 'total income'. Some of the High Courts have agreed with the said proposition. However, according to the respective Assessees and as per some of the High Courts' decisions, if no assessment proceeding is pending on the date of initiation of the search, the AO may consider only the incriminating material found during the search and is precluded from considering any other material derived from any other source.
3. Shri N. Venkataraman, learned Additional Solicitor General of India has appeared on behalf of the Revenue and S/Shri Arvind P. Datar, Kavin Gulati, Preteesh Kapoor, learned Senior Advocates and Shri Ved Jain, learned Counsel have appeared on behalf of the respective Assessees.
3.1. Shri N. Venkataraman, learned ASG has made the following submissions on behalf of the Revenue: