DEPUTY COMMISSIONER OF INCOME TAX, NUMGAMBAKKAM vs. JSR INFRA DEVELOPERS PRIVATE LIMITED, CHENNAI

आयकर अपीलीय अिधकरण, ‘ए’
यायपीठ, चे ई।
IN THE INCOME TAX APPELLATE TRIBUNAL
‘A’ BENCH: CHENNAI

ीएबीटी. वक
, ाियकसद एवं
एवं
एवं
एवं

ीजगदीश, लेखासद केसम

BEFORE SHRI ABY T. VARKEY, JUDICIAL MEMBER AND SHRI JAGADISH, ACCOUNTANT MEMBER

आयकरअपीलसं./ITA No.2232/Chny/2024
िनधारणवष/Assessment Year: 2016-17

The DCIT,
Central Circle-2(4),
Chennai.

v.
M/s.JSR Infra –
Developers Pvt. Ltd.,
No.4, 10A, East Cross Road,
Gandhi Nagar,
Vellore-632 006. [PAN: AADCJ 4440 P]
(अपीलाथ/Appellant)

(यथ/Respondent)

अपीलाथ क ओर से/ Appellant by :
Ms.Swapna Nanu Ambatt, CIT for Mr. Nilay Baran Som, CIT
यथ क ओर से /Respondent by :
Mr. Venkat Raman CA
सुनवाईकतारीख/Date of Hearing
:
15.01.2025
घोषणाकतारीख /Date of Pronouncement
:
28.02.2025

आदेश / O R D E R
PER ABY T. VARKEY, JM:

This is an appeal preferred by the Revenue against the order of the Learned Commissioner of Income Tax (Appeals), (hereinafter referred to as ‘Ld.CIT(A)‘), Chennai-19, dated 26.06.2024 for the Assessment Year
(hereinafter referred to as ‘AY‘) 2016-17. 2. Grounds of appeal raised by the Revenue are as under:

“1. The order of the erroneous on facts of th
2 The Ld.CIT(A) erred i
Rs. 20,09,41,057/- whe the assessee on 30.11. u/s 153C were initiated claim in the ITR filed in 3. The Ld.CIT(A) erre deduction u/s 801A of t filed by the assessee u/
The Ld.CIT(A) erred i decision of the Hon'ble
2022 (Arising out of S
Income Tax-III, Bangal held that the "Revenue the assessee under sect
Section 139(1) and can in a case where there return and taking a con specifically not claimed permissible. By filing t permitted to substitute of the IT Act".
4. The Ld.CIT(A) erre appreciating the fact unaccounted income if conducted by the Incom
Hon'ble Rajasthan High
[2013] 36 taxmann.com is not open for the asse not been claimed in the completed, only becau pursuance of search or 5. The Ld.CIT(A) erre appreciating the fact tha was vogue earlier, sim reopen his assessment reduced. However, the detrimental to the rev introduction of search a and not to facilitate an a 6. For these grounds a that may be raised dur learned CIT(Appeals) m restored.”
3. The brief facts of business of developme
ITA No.2232/Chny/
M/s. JSR Infra
:: 2 ::

learned Commissioner of Income Tax (App he case and in law.
n allowing the claim of deduction u/s 80IA of th en the same was not claimed in the original ITR
.2016 but claimed for the first time, after proc d post search conducted in their premises by f response to notice u/s 153C of the Act on 31/0
d in not taking note of the fact that the the Act was not made by the assesse in the orig s 139(1) on 30.11.2016. n allowing the appeal of the assessee igno
Supreme Court of India in CIVIL APPEAL NO.
SLP(Civil) No. 7620/2021) Principal Commiss ore Vs M/s Wipro Limited wherein the Apex C e is right in submitting that the revised return tion 139(5) can only substitute its original retu not transform it. The assessee can file a revise is an omission or a wrong statement. Filing a ntrary stand and/or claiming the exemption, wh earlier while filing the original return of incom he revised return of income, the assessee ca the original return of income filed under section ed in allowing the appeal of the assessee that the assessee would not have disclo the search and seizure action would have n me Tax Department as enunciated in the decisio
Court in the case of M/s Jal Steels (India) vs m 523, wherein the Hon'ble High Court has hel essee to seek deduction or claim expenditure w e original assessment, which assessment alread se an assessment under Section 153A of the requisition is required to be made.
ed in allowing the appeal of the assessee at in the statute of Income tax Act, 1961, a sec milar to that of section 147 facilitating an asse and consider his claim whereby his income c same had been removed w.e.f. 01.10.1984 a venue. Therefore, it is very obvious that t assessment was to bring out the unaccounted assessee in taking recourses to reduction in inco nd any other ground including amendment of ring the course of the appeal proceedings, the may be set aside and that of the Assessing O the case are that, the assessee is nt of infrastructure projects. For t

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peals) is he Act of R filed by ceedings filing the 7/2018. claim of ginal ITR ring the 1449 OF sioner of ourt has filed by rn under ed return a revised hich was me is not annot be n 139(1) without sed the not been on of the A.C.I.T, ld that it which has y stands e Act in without ction 146
essee to could be as it was the very d income ome.
grounds order of fficer be engaged in the he relevant AY

2016-17, the assessee declaring total income income, the assessee ha
The case of the assesse
143(2) of the Act dated action u/s 132 of the A 08.12.2016. In the cou to unaccounted cash p premises of SRS Mining assessee in his stateme as the undisclosed inco brought to our notice t the AO on 03.11.2017. assessment proceedings
17 was pending. There terms of Section 153C o of the Act for the releva on the assessee on 18. of income within 15 day noted that, on the date date of search in terms tax assessment for AY
ITA No.2232/Chny/
M/s. JSR Infra
:: 3 ::

e had filed its return of income of Rs.46,69,82,790/-. In the orig ad not claimed any deduction u/s 80
ee was selected for scrutiny by issu
18.07.2017. In the meantime, ther
Act conducted in the case of M/s urse of search, certain electronic ev payments by the assessee was fo and in relation thereto, one of the nt recorded on 11.12.2016 had adm ome of the assessee. As a conse hat the case of the assessee was c
The Ld. AR emphasized that on the s u/s 143(3) of the Act for the rele eafter, satisfaction note was drawn of the Act on 11.07.2018 and the n ant AY 2016-17 was issued on 13.0
07.2018), requiring the assessee t ys from the date of service of the sa e of satisfaction note, which is dee of proviso to Section 153C of the A 2016-17 was pending on the said

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on 30.11.2016
ginal return of 0-IA of the Act.
ue of notice u/s re was a search
SRS Mining on vidence relating ound from the directors of the mitted the same quence, it was centralized with e said date, the evant AY 2016- n by the AO in notice u/s 153C
7.2018 (served o file its return aid notice. It is emed to be the Act, the income date and as a consequence of the iss assessment proceeding
18.07.2017 stood abate
4. It was brought to 153C of the Act, the as which was within the ti assessee had admitted director in his stateme claimed deduction of R first time. The asses
Rs.34,49,56,240/-, afte return of income filed u have duly filed the aud income on 31.07.2018,
AO in the assessment the fresh claim of dedu this claim was not mad of the Act and therefore
153C of the Act. Accord
153C are meant for the therefore acceptance
ITA No.2232/Chny/
M/s. JSR Infra
:: 4 ::

sue of notice u/s 153C of the Ac s initiated by notice u/s 143(2) of ed.
o our notice that, in response to ssessee filed its return of income o ime allowed in the said notice. In t the additional income which was ent on 11.12.2016 and at the sa
Rs.20,09,41,057/- u/s 80-IA(4) of t ssee accordingly declared a tot er claiming deduction u/s 80-IA of u/s 153C of the Act. The assessee i dit report in Form 10CCB along wit as mandated by Section 80-IA(7) completed u/s 143(3)/153C of the uction u/s 80-IA(4) of the Act, on t e in the original return of income f e could not have been made in the ding to the AO, the provisions of Se e benefit of the Revenue and not th of fresh claim in the return of /2024 (AY 2016-17)
Developers Pvt. Ltd.

ct, the original f the Act dated the notice u/s on 31.07.2018, this return, the offered by the ame time also the Act for the tal income of the Act, in the is also noted to h the return of of the Act. The Act disallowed the ground that filed u/s 139(1) return filed u/s ection 153A and e assessee and f income filed consequent to search, unaccounted income.
5. On appeal, the L fresh deduction u/s 8
assessment, the assess in adherence with the finding, the Ld. CIT(A) r
- Sanjay Nandal Vy
23.12.2011]
- PCIT v. Neeraj Jin
- Kirit Dahyabhai Pa
- ACIT v. Spelndo
06.06.2018]
- Shrikanth Mohta v
- Naresh T Wadhwa
- Malpani Estates v.
- DCIT v. Sheth D
(Bom)
- ITO v. Gajraj Cons
- ACIT v. Shri V.N dated 04.02.2013
6. Being aggrieved b assessee’s claim for fre now in appeal before us
7. Assailing the acti upon the decision of the vs Sew Infrastructu
Tribunal has held that t
ITA No.2232/Chny/
M/s. JSR Infra
:: 5 ::

would defeat the very purpose of Ld. CIT(A) is noted to have allowe
80-IA of the Act holding that, ee can make all claims, provided th notice u/s 153C of the Act. For a relied upon the following decisions:
yas v. ITO [ITA No.771 & 774 / PUN dal [2017] 393 ITR 1 (Del) atel v. ACIT [2017] 80 taxmann.com orLandbase Ltd [ITA No.2461/DE v. CIT [2019] 414 ITR 270 (Cal) ani v. DCIT [2015] 68 SOT 235 (Pun
. ACIT [2014] 64 SOT 105 (Pune-Tr
Developers (P) Ltd [2012] 25 taxm structions [2015] 70 SOT 634 (Pune
N.Devadoss [ITA No.1219 & 1221
3]
by the above order of the Ld. CIT(A sh deduction u/s 80-IA of the Act, s.
on of the Ld. CIT(A), the Ld. CIT, e Special Bench at Hyderabad in th re Limited (209 ITD 1)and ar the assessee is not entitled to make

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unearthing the ed the claim of in an abated e return is filed arriving at this N / 2010 dated m 162 (Guj)
EL/2016 dated ne-Trib) ib) mann.com 173
e-Trib)
/ MDS / 2012
A) allowing the the Revenue is , DR has relied e case of DCIT rgued that the e claim of fresh deduction u/s 80-IA of Act. The Ld. CIT, DR, decisions of the Hon’ble
(61 taxman 412), H
Buildwell Ltd. (149 ta
ITR 323) to support th to raise fresh claim in t
CIT, DR further took us applicable from AY 2016
a claim for deduction u
139(1) of the Act, then u/s 80-IA subsequently also filed a written note
8. Per contra, the Ld order of the Ld. CIT(A) interpreted the decision
Sew Infrastructure Ltd.
the assessee. Taking u
Court in the case of Ab that it is by now well se years under Section 15
ITA No.2232/Chny/
M/s. JSR Infra
:: 6 ::

the Act in a return of income filed u further relied upon the ratio laid e Delhi High Court in the case of on’ble Supreme Court in the cas axmann.com 199) and Goetze In e AO’s case that the assessee canno the return filed u/s 153A/153C of th through the legislative history of Se
6-17 and argued that if the assesse nder Chapter VIA in the return of in n the assessee is barred from mak
. In support of his arguments, the L
, which has been taken on record.
d. AR for the assessee vehemently
). The Ld. AR argued that the Rev n of the Special Bench, Hyderabad,
(supra), which according to him w us through the decision of the Ho bhisar Buildwell Ltd. (supra), the Ld ettled in law that in the context of t
3A/153C of the Act, the same can

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u/s 153A of the d down in the Kabul Chawla es of Abhisar ndia Ltd. (284
ot be permitted he Act. The Ld.
ection 80-AC as ee did not make ncome filed u/s king fresh claim
Ld. CIT, DR has y supported the venue had mis-
, in the case of was in favour of on’ble Supreme d. AR explained the block of six be divided into two categories viz., assessments. He submi not only the Revenue is from addition on the course of search but lik any new claims in thes u/s 153A/153C of th concerned, the prevailin the return of income file of income originally fil abated assessment, bot and/or any additions, unearthed in the cours permitted to raise any return of income filed in 9. The Ld. AR furthe
80AC and 80-IA(7) of th case was in compliance for deduction u/s 80-IA the Act was allowable requires that the claim f
ITA No.2232/Chny/
M/s. JSR Infra
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(a) unabated assessments and itted that only in cases of unabated s prevented from making any other basis of incriminating material un kewise the assessee is also prevent se already completed assessments, e Act. In so far as abated as ng jurisprudence, according to the ed u/s 153A/153C of the Act substit ed u/s 139(1) of the Act and the th the Revenue is permitted to mak irrespective whether it is base se of search and likewise, the as fresh claims or deductions for the n response to notice u/s 153A/153C er explained to us the interplay of S he Act and argued that the assessee e of these provisions and therefore
A made for the first time in the retu
. He brought to our notice that, for deduction under Chapter VIA has /2024 (AY 2016-17)
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d (b) abated d assessments, r addition apart earthed in the ed from raising now reopened sessments are Ld. AR, is that tutes the return erefore, in this e any enquiries d on material ssessee is also first time in a of the Act.
Section 80A(5), e in the present the fresh claim urn u/s 153C of Section 80AC s to be made in the return of income o explained to us that the and therefore the retur construed as return filed the conditions laid down showed us that the ass as mandated in Section with the return of incom said provision was als judicial precedents in su urged that there was CIT(A). The Ld. AR h rebutting the contentio record.
10. We have heard submissions and perus material placed on reco that, the assessee is infrastructure projects.
u/s 139 of the Act f deduction u/s 80-IA of t
ITA No.2232/Chny/
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:: 8 ::

or otherwise it cannot be entertaine e relevant AY 2016-17 was an abat rn of income filed u/s 153C of the d u/s 139 of the Act and in that view n in Section 80A(5) and 80AC was m essee had also obtained certificate
80-IA(7) of the Act and the same me and therefore, the requirement la o fulfilled. The Ld. AR further rel upport of the foregoing contention.
no reason to interfere with the or as also furnished a written note ns of the Ld. CIT, DR, which has both the parties, gone throug ed the relevant provisions of law ord. The undisputed facts of the pr engaged in the business of d
The assessee in the original return for relevant AY 2016-17, had no the Act. The case of the assessee w

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ed. The Ld. AR ted assessment
Act was to be w of the matter met. He further in Form 10CCB was filed along aid down in the lied on several
He accordingly rder of the Ld.
of arguments been taken on h the written as well as the resent case are evelopment of of income filed ot claimed any was selected for scrutiny and at the time the original assessme
Pursuant to the notice return of income within return of income filed o claimed deduction u/s 8
of income filed u/s 153C of chartered accountant
Act. On these facts, the assessee was legally
Chapter VI-A of the Act response to notice u/
assessment.
11. It is noted that, mandates that the asse initiation of search wo return of income filed
153A(1)(a) of the Act, w
Section 139 of the Act.
original return which subsequent return filed
ITA No.2232/Chny/
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:: 9 ::

e when the notice u/s 153C of the A nt was pending, and therefore u/s 153C of the Act, the assessee the time allowed under the said no on 30.07.2018, the assessee for the 80-IA of the Act of Rs.20,09,41,05
C of the Act was also accompanied t in Form 10CCB, as required u/s 8
e narrow issue in dispute before us, permitted to raise a claim of de t, for the first time in the return of /s 153C of the Act, in relation the second proviso to Section 15
ssments or re-assessments pending ould stand abated. It further prov d by the searched person, in ter would be construed to be a return o
Therefore, once the assessment ge had been filed loses its origin d under Section 153Ar.w. 153C o

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Act was issued, it got abated.
e had filed the otice and in this e first time had 7/-. The return with the report
80-IA(7) of the is whether the eduction under income filed in to an abated
53A of the Act g on the date of vides that, the rms of Section of income under ets abated, the nality and the of the said Act

(which is in consequen
132 of the Act) takes th return of income filed construed to be one provisions of the said Ac the return filed under original return under Se provisions of the Act. I
Section 153A of the Ac
Income-tax Act will app
153A of the Act, as if s under section 139(1) o proviso to Section 153
abated, the provisions case of return filed und to apply in case of ret regard to the foregoing entitled to lodge a new of the Act, which was because the assessme assessee in such a situ decided in favour of the ITA No.2232/Chny/
M/s. JSR Infra
:: 10 ::

ce to the search action conducted he place of the original return. In su under Section 153A(1) of the said filed under Section 139(1) of the ct shall apply to the same according
Section 153Ar.w. 153C takes the ection 139 of the Act, for the purpo
In this regard, it is noted that, th ct explicitly provides that, all the pr ply to the return filed by an assessee uch return filed by the assessee wa of the Act. In other words, in view
3A(1) of the said Act, once an as of the Act which would be otherwis der Section 139(1) of the Act, woul turn filed under Section 153A of t provisions, we are of the view that claim in a proceeding under Sectio s not claimed in the regular retu nt was never made/finalized in th uation. We find that this particular e assessee by the Hon'ble Bombay H

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under Section uch a case, the Act, would be e Act and the gly. As a result, e place of the oses of all other e provisions of rovisions of the e under Section as a return filed w of the second ssessment gets se applicable in d also continue he Act. Having the assessee is on 153A / 153C urn of income, he case of the issue has been High Court held in the case of B.G. Sh wherein it was held as u
"8. The grievance unsustainable as it (India) Ltd. (supra) that the claim for d absence of the sam return of income. I
Court in CIT v. Sun
442 a re-assessme reduction of incom view, it is submitte admission of the ap
. . . . . . . . . .
10. The reliance on Ltd. (supra) by the of an assessment u
Apex Court observ
Assessing Officer assessment and do the earlier assessm
11. In the present position that the pe return filed under had abated. This proviso to Section 153A(1) of the Act for each of the si issued. It is this re subject of assessem assessment procee the earlier return fi treated as non est filing of the return c return of income so of the Act is a retu respondent-assesse first time under th otherwise applicabl
139(1) of the Act
Section 153A of th equally apply."
ITA No.2232/Chny/
M/s. JSR Infra
:: 11 ::

hirke Construction Technology P under :- of the Revenue before us is that the impu t is a passed in the face of the Apex Court O
). It is submitted that the impugned order could deduction could be entertained by the Assessing me finding a place either in return of income or t is further submitted that in view of the decisio n Engineering Works (P.) Ltd. [1992] 198 ITR 2
nt consequent to re-opening of the assessment me which had been originally assessed to tax.
ed that the impugned order of the Tribunal is no ppeal is warranted.
n the decision of the Apex Court in Sun Engineer e Revenue is misplaced. The above case dealt w under Section 147 of the Act. It was in that co ved that the Order passed under Section 147
is primarily restricted to such income which oes not permit reconsideration of issue which ar ment years in favour of the Revenue.
t facts for the subject assessment years it is ending assessment before the Assessing Officer
Section 139(1) of the Act for the subject Ass was on account of the search and as provid
153A(1) of the Act. The consequence of notice is that assessee is required to furnish fresh re x assessment years in regard to which a no eturn which is filed consequent to the notice w ment by the Revenue for the first time in the c edings. Consequent to notice under Section 15
led for the purpose of assessment which is pen in law. Further, Section 153A(1) of the Act itse consequent to notice, the provision of the Act w o filed. Consequently, the return filed under Se rn furnished under Section 139 of the Act. Con ee is being assessed in respect of abated asses he Act. Therefore the provisions of the Act w le in case of return filed in the regular course would also continue to apply in case of retu he Act and the case laws on the provision of /2024 (AY 2016-17)
Developers Pvt. Ltd.

P Ltd (supra), ugned order is rder in Goetze d not have held g Officer in the r in the revised on of the Apex
97/64 Taxman cannot lead to In the above ot justified and ring Works (P.) with re-opening ontext that the 7/148 and the h has escaped re concluded in an undisputed consequent to essment years ded in second under Section turn of income otice has been which would be case of abated
53A of the Act ding, would be elf provides on will apply to the ection 153A(1) nsequently, the ssment for the which would be under Section urn filed under the Act would

mbay High Court in the case of P
71) is also found to be squarely ap ase also, the Hon'ble High Court h assessee to lodge new claim in pr se of abated assessments as the r equired to be treated as return of in e relevant findings of the Hon'ble s, section 153-A(1) provides that where a perso section 132 or his books of accounts, etc. are -A after 31-52003, the assessing officer is man son to furnish return of income in respect of ea six assessment years immediately preceding th e previous year in which search is conducted o s of income shall be treated to be returns of inc
. Once returns are furnished, income is to b six assessment years immediately preceding t the previous year in which such search is e. Thus, once section 153-A(1) is invoked, ass mmediately preceding the assessment year in w quisition is made becomes open to assess aspects are crucial here. One is use of t in sub-section (1); and secondly that returns o under section 153-A (1)(a) would be construed
The use of non obstante clause in sub-section he expression "notwithstanding" is indicative of ons of section 153-A(1) would have overriding e ed in sections 139, 147, 148, 149, 151 and 153. d the above, we may also refer to the second
153A(1). For the sake of convenience, the sec
153A(1) of the said Act which is relevant is rep that assessment or reassessment, if any, re alling within the period of six assessment years pending on the date of initiation of the search requisition under section 132A, as the case

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r.CIT Vs JSW pplicable to the as held that, it roceedings u/s.
return filed u/s ncome filed u/s High Court are on is subjected e requisitioned ndated to issue ch assessment he assessment or requisition is come furnished be assessed or he assessment conducted or sessment for 6
which search is sment or re- he expression of income filed d to be returns n (1) of section f the legislative effect over the and the third cond and third produced below elating to any s referred to in under section may be, shall Provided also that published in the O reassessment has a of cases in which t assessing or reasse preceding the asse conducted or requis
8.3 The second pro falling within the s initiation of search
132-A shall abate.
frame rules to spe officer shall not be income for the said
8.4 Reverting back proviso, any asses falling within the s initiation of search proceedings shall a proceedings on the abate.
8.5 That brings u dictionary meanin
Dictionary, Indian abate is abatemen been defined to m defeat of a pending
Supreme Court on to mean "an extin applied to an action
9. Therefore, from A(1) of the Act mo evident that assess search would stand the six assessment be a return of incom
........
13. In the present
At that point of tim
2008-09 was pend issued and assessm proviso to section that it was open fo make claims for al
That apart, assesse
ITA No.2232/Chny/
M/s. JSR Infra
:: 13 ::

t the Central Government may by rules ma
Official Gazette (except in cases where any a abated under the second proviso), specify the c the Assessing Officer shall not be required to is essing the total income for six assessment year essment year relevant to the previous year in w sition is made.
oviso says that any assessment or re-assessme said period of six assessment years pending o h under section 132 or making of requisition
The third proviso mentions that the Central Go ecify such class or classes of cases in which required to issue notice for assessing or reasse six assessment years.
to the second proviso what is to be noticed is t ssment or re-assessment in respect of any ass aid period of six assessment years is pending or making of requisition, those assessment or abate. In other words, pending assessment or e date of initiation of search or making of re s to the crucial expression, which is 'abate'.
g of the word 'abate', as per Concise O
Edition, is to reduce or remove (a nuisance).
t. In Black's Law Dictionary, Eighth Edition, 'a mean an act of eliminating or nullifying; the g action for a reason unrelated to the merits o
Words and Phrases (1950-2008), "abating" ha guishment of the very right of action itself"; n, is to cease, terminate, or come to an end pre a critical analysis of the provisions contained i ore particularly the key expressions as referred sments or re-assessments pending on the date d abated. Return of income filed by the person t years in terms of section 153-A(1)(a) would b me under section 139 of the Act.
case, search was conducted on the assessee o e assessment in the case of assessee for the as ing scrutiny since notice under section 143(2) ment was not completed. Therefore, in view
153A of the said Act, once assessment got ab or both the parties, i.e. the assessee as well llowance or to make disallowance, as the case ee could lodge a new claim for deduction etc. w

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ade by it and assessment or class or classes ssue notice for rs immediately which search is nt proceedings on the date of under section vernment may the assessing essing the total that as per this sessment year on the date of re-assessment r reassessment equisition shall . The ordinary
Oxford English
. Derivative of abatement' has suspension or of the claim. In s been defined to "abate", as maturely.
n section 153- to above, it is of initiation of concerned for be construed to n 30-11-2010. ssessment year of the Act was of the second ated, it meant as revenue to e may be, etc.
which remained to be claimed in assessment was ne fortified that once been filed looses i
153A of the said Ac
132) takes the plac filed under section under section 139( the same according to the assessee to r
14. We would furth the case of Contin also explains the s pending assessme abated, then the a cease to exist and taken by the AO undertaken by the 15. In view of the Tribunal in respect order under challen
"14. From the abov
153A of the Act in requiring him to fur return of income assessment years and clause (b) post years immediately in which such searc assess or reassess within such six as assessment or rea within the period pending on the dat the present case b
(1) of section 153A far as the second t the assessments w the entire assessm made. The pending
Act. The abatemen assessments for th being search asse assessments merge stand on different pending assessme assessment and as ITA No.2232/Chny/
M/s. JSR Infra
:: 14 ::

his earlier/regular return of income. This i ever made in the case of the assessee in such a the assessment gets abated, the original ret ts originality and the subsequent return filed ct (which is in consequence to the search action ce of the original return. In such a case, the re
153A(1) of the said Act, would be construed t
1) of the Act and the provisions of the said Act gly. If that be the position, all legitimate claims raise in the return of income filed under section her like to emphasis on the judgment passed b ental Warehousing Corpn (Nhava Sheva) Ltd.
second proviso to Section 153A(1). The expla nt or reassessment on the date of initiation assessment pending on the date of initiation o no further action with respect to that assess
. In such a situation the assessment is re
AO under section 153A(1) of the said Act.
above, we are in agreement with the findings of allowing of the assessee's appeal in paragr nge dated 28-92016, which reads thus :
ve discussion and precedence, the scheme of as case of search, the AO shall issue notice to se rnish within such period as may be specified in in respect of each assessment year falli referred to in clause (b) of sub-section (1) of tulates assessment or reassessment of the tota preceding the assessment year relevant to the ch is conducted. The first proviso mandates tha the total income in respect of each assessme ssessment years. The second proviso postu assessment, if any, relating to any assessme of six assessment years referred to in sub- te of initiation of the search u/s. 132 of the Act efore us, however, though the second proviso
A would not apply in the first three years of thi hree year period is concerned (which are pend were pending The proceedings in relation there ment in relation to the second phase of three g assessment in that case may be undertaken u/
nt of pending assessment is for the purpose o e same year i.e. one being regular assessment essment u/s. 153A of the Act. In other wor e into one assessment. It means that complete footing from the pending assessments. Hence ents are concerned, the juri iction to m ssessment u/s. 153A of the Act merge into on /2024 (AY 2016-17)
Developers Pvt. Ltd.

is so because situation. It is urn which had under section n under section turn of income to be one filed t shall apply to would be open
153A(1).
by this Court in (supra) which anation is that n of search if of search shall sment shall be equired to be s given by the aph -14 of the ssessment u/s.
earched person the notice, the ng within six f section 153A l income of six e previous year at the AO shall ent year falling lates that the nt year falling
-section (1) is shall abate. In to sub-section s case, yet, as ing before us), eto abate. Now years can be /s. 153A of the f avoiding two t and the other ds, these two d assessments e, in so far as make original ne and in that case only one asse pending, is to be regular material ex that the assessee
153A of the Act undertaken u/s. 15
to section 153A (1
way i.e. for the Rev regular items decla about the genuinen new claim, deduct regular return of in the assessee in suc
16. From the abov
153A(1) of the sa assessee to lodge a not claimed in his made/finalised in th
13. Coming to the de case of Sew Infrastru in agreement with the a relevant findings, taken
“33. In this vi circumstances of assessee cannot the Income Tax filed in response pursuant to sea unabated/comple abated assessme incriminating ma him, including in may claim all ded first return of inc questions referred

ITA No.2232/Chny/
M/s. JSR Infra
:: 15 ::

essment for the remaining set of years, where made separately on the basis of search mat xisting or brought on record before the AO/Reve can make any new claim in the return of inc or even during the course of assessmen
53A of the Act. In our view, and in view of the s
1) of the Act, once assessment get abated it i venue to make any additions apart from seized ared in the return can be subject matter if t ness of those items and similarly the assessee ion or exemption or relief which remained to ncome, because assessment was never made ch situation. Hence, we allow this issue of assess ve we conclude that in view of the second prov aid Act, once assessment gets abated, it is a new claim in a proceeding under section 153A s regular return of income, because assessme he case of the assessee in such a situation.”
ecision of the Special Bench at Hy ucture Ltd (supra) cited by the Re assessee that this decision supports note of by us, is as follows:- ew of the matter and considering th f the case, we are of the considered v make a fresh claim of deduction under Ch
Act, 1961, for the first time, in the retu e to notice issued under Section 153A arch conducted under Section 132 of eted assessment as on the date of search ents, like the AO who can make assessme aterials and any other information made formation furnished in return of income, ductions towards any income or expenditur come and fresh assessment. In view of th d are answered as under:

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Developers Pvt. Ltd.

assessment is terials and the enue. It means come filed u/s.
nt proceedings second proviso s opened both d material even there is doubt also can lodge be claimed in in the case of see's appeal."
viso to section open for the A(1) which was ent was never yderabad in the evenue, we are their case. The e facts and iew that the apter VI-A of rn of income of the Act, the Act, in h. In case of ent based on available to the assessee re, as if it is a he above, the (i) Whether an assesse a claim for deduc
Chapter VIA of Incom
1961, for the first t return of income filed to the notice issued u the Act, pursuant to conducted under sect the Act ?
(ii) If yes, under which c
?
14. We observe that t to certain excerpts fro rendered in the context fresh claim of any new unabated assessments.
15. In view of the rat amply clear that the a abated assessments u/
provisions of the Act, return filed under Sectio in case of return filed regard to the decisions
ITA No.2232/Chny/
M/s. JSR Infra
:: 16 ::

ee can make tion under me Tax Act, ime, in the in response u/ s 153A of o a search tion 132 of Yes circumstances I. In case of unabated/ completed no fresh claim can be made und of the Income Tax Act, 1961, for the return of income filed in r notice issued u/s 153A of the Act search conducted under section 1
II. in case of abated assess claim can be made under ch the Income Tax Act, 1961, for in the return of income filed i the notice issued u/s 153A pursuant to a search con section 132 of the Act.
the arguments of the Ld. CIT, DR an om this decision was misplaced of unabated assessments, to which w deduction cannot be made by a tio laid down in the above decision assessee is entitled to lodge new
/s 153A/153C of the Act. As not which would be otherwise applica on 139(1) of the Act, would also co under Section 153Ar.w. 153C of t of B.G. Shirke Construction Tech

/2024 (AY 2016-17)
Developers Pvt. Ltd.

d assessment/s, der chapter VI-A the first time, in response to the t, pursuant to a 32 of the Act.
sment/s, fresh hapter VI-A of r the first time, in response to A of the Act, ducted under nd his reference as those were we agree that, an assessee in ns (supra), it is w claims in the ed earlier, the able in case of ontinue to apply he Act. Having hnology P Ltd

(supra),JSW Steel Lt the same analogy w proceeding’su/s 153C o accordingly hold that th the abated assessment
Act.
16. Now we come to not complied with the p the fresh claim of dedu income filed u/s 153C o have a look at the rele reads as under:-
“Where in comput relevant to the asse
(i) the 1st day of deduction is admis or section 80-IC or (ii) the 1st day of A this Chapter under no such deduction income for such ass section (1) of sectio
17. In the above prov the Legislature has p deduction under Chapt
ITA No.2232/Chny/
M/s. JSR Infra
:: 17 ::

td (supra)& Sew Infrastructure would be applicable with equal of the Act for abated assessment he assessee is entitled to raise addit for AY 2016-17 in the proceedings u the Revenue’s contention that the provisions of Section 80AC of the Ac uction made u/s 80-IA of the Act, i of the Act cannot be admitted. For t vant provisions of Section 80AC of ting the total income of an assessee of any essment year commencing on or after—
f April, 2006 but before the 1st day of Ap sible under section 80-IA or section 80-IAB or section 80-ID or section 80-IE;
April, 2018, any deduction is admissible under a the heading "C.—Deductions in respect of certa shall be allowed to him unless he furnishes a sessment year on or before the due date specif on 139.”
vision, which is applicable in releva provided that, unless the assess ter-VIA in the return of income,

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Developers Pvt. Ltd.

e Ltd (supra), force in the ts as well. We tional claim/s in u/s 153C of the e assessee had ct and therefore n the return of this, let us first the Act, which previous year ril, 2018, any r section 80-IB ny provision of ain incomes", a return of his fied under sub- nt AY 2016-17, ee claims the it shall not be admissible. As rightly p proviso to Section 153
abated, the return of i
153A of the Act would b of the Act, and necessa return u/s 153C is filed return of income u/s 13
the time allowed in not under Chapter VI-A (8
return of income (ded would fulfill the criteria proposition to be suppo the case of ABCI Infra
397), wherein it was he
“112. On appeal, ld has held that the R
153A of the Act su the Act] and furthe treated as Income
Income are to be ta per section 139(1) the assessee [for t
& AY 2019-20)] ar section 139(1) of t to be taken/treated
139(1) of the Act, t the Act cannot be Form 10CCBs) were 114. We have he authorities. We ha
ITA No.2232/Chny/
M/s. JSR Infra
:: 18 ::

pointed out by the Ld. AR, in view
3A(1) of the said Act, once an as income filed in response to notice be construed as a return filed under ary consequences would follow. Acc within the prescribed time, it shall 39(1) of the Act (in the present ca tice u/s 153C) and consequently, if 80-IA(4), in the present case) is uction claimed in RoI, in present laid down in Section 80-AC of the A rted by the decision of this Tribunal astructure (P) Ltd Vs ACIT (154
eld as under:- d. CIT(A) vide his impugned appellate order u/s Returns of Income filed in compliance with Noti bstitutes the original Income-tax Returns [filed er since these Returns of Income (u/s 153A o e-tax Returns filed u/s 139(1) of the Act, the aken/treated as having been furnished within th of the Act and hence the corresponding Form 1
he aforesaid Assessment Years (i.e. AY 2017-1
re also to be taken as furnished within the tim the Act. Further, since these Form-10CCBs, as d as having been furnished within the time limit the assessee's claim for Deduction under sectio rejected on the ground that the correspondin e filed belatedly.
eard both the sides and perused the orders ave already discussed earlier in details in this /2024 (AY 2016-17)
Developers Pvt. Ltd.

w of the second ssessment gets u/s 153C r.w.
Section 139(1) cordingly, if the be treated as a ase, filed within f the deduction claimed in the case), then it Act. We find this at Guwahati in taxmann.com
250 of the Act ices issued u/s d u/s 139(1) of of the Act) are ese Returns of he time limit as 10CCBs filed by 8, AY 2018-19
me limit as per aforesaid, are as per section n 80IA(4)(i) of ng Forms (i.e.
of the lower s order that a Return of Income
Return of Income f the Act is filed with taken as filed withi the Audit Report in filing Return of Inc
10CCB is to be tak
Act and thus withi holding so, we draw
High Court in Shr under:
"The second questio
When search oper obligation of the a that a notice is iss the return is filed b notice under sectio to have been filed w the benefit under s
18. The Revenue’s re
(supra) on this aspect
Tribunal made it amply referred question viz., w
VI-A of the Income Tax the return filed pursuan which they had answe raised in an abated as merits as to whether th
80-IA(4) of the Act, we not answered by them.
reads as under:-
ITA No.2232/Chny/
M/s. JSR Infra
:: 19 ::

filed in response to Notice u/s 153A substitut filed u/s 139 of the Act. Thus, where the Retur hin the time permitted u/s 153A of the Act, the n the time limit as per section 139(1) of the Ac n Form 10CCB is furnished on or before the tim come in the Notice issued u/s 153A of the Act, ken as filed on or before the time permitted u/s in the time allowed u/s 80IA(7) r.w.s 80AC o w support from judgment rendered by the Hon rikant Mohta (supra) wherein the Hon'ble High on is answered thus:
rations are conducted under section 132 of assessee to file any return remains suspended ued for such purpose under section 153A(1)(a) by the assessee within the reasonable time perm on 153A(1)(a) of the Act, such return would th within the time permitted under section 139 (1) ection 139(3) of the Act to be availed of by the eliance on the decision of Sew Inf is again found to be factually mis y clear that their discussion only whether a fresh claim of deduction
Act, 1961 could be maintained for t nt to a notice under Section 153A of ered in favour of the assessee, if ssessment. The Tribunal made it he assessee is eligible for such a cla ere not argued by both parties and The relevant concluding paragraph

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Developers Pvt. Ltd.

es the original rn u/s 153A of e same is to be ct. Thus, where me allowed for the said Form s 139(1) of the of the Act. For n'ble Calcutta
Court held as f the Act, the till such time
) of the Act. If mitted by such en be deemed
) of the Act for assessee."
frastructure Ltd splaced, as the related to the under Chapter the first time in f the Act or not, the claim was clear that, the aim or not, u/s d therefore was of this decision

“The present discus to on the issue, i.e the Income Tax Ac filed pursuant to a counsel for the as Revenue did not ar such a claim or no posted for hearing the Act on merits.”
19. For the above re interfere with the order raised by the Revenue a 20. In the result, the Order pronounced (जगदीश)
(JAGADISH)
लेखासद /ACCOUNTANT
चेई/Chennai,
दनांक/Dated: 28th Februar
TLN, Sr.PS
आदेशक ितिलिपअेिषत/Copy

ITA No.2232/Chny/
M/s. JSR Infra
:: 20 ::

ssion hereinabove is with reference to the que e. whether a fresh claim of deduction under C ct, 196 1 could be maintained for the first time a notice under Section 153A of the Act or not ssessee and the Senior Standing Counsel app rgue on the merits as to whether the assessee ot. Therefore, the present appeals filed by the on the issue of deduction claimed under Sect easons therefore, we do not see of the Ld.CIT(A) on this issue. Henc are accordingly dismissed.
appeal of the Revenue is dismissed.
d on the 28th day of February, 2025, MEMBER
(एबीटी.
(ABY T. VA

याियकसदय/JUDI ry, 2025. to:
nai / Madurai / Salem / Coimbatore.

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stions referred hapter VI-A of e in the return t. The learned pearing for the e is eligible for e Revenue are tion 80IA(4) of any reason to ce, the grounds
.
in Chennai.
/-
वक
)
ARKEY)
CIAL MEMBER