February 2019

Section 153A, Rule 27 - Any issues other than those relating to undisclosed income which come to the AO’s knowledge while conducting enquiries relating to Search shall not be considered by AO for making assessment u/s. 153A if normal assessment for such relevant assessment years had already been completed earlier. Rule 27 gives liberty to the respondent to raise any ground which had been decided against him by the first appellate authority.

Jagdish T. Punjabi | Devendra Jain | Tejaswini Ghag
Chartered Accountants

27.  (2018) 66 ITR (Trib.) 306 (Delhi) ACIT vs. Meroform India Pvt Ltd. ITA No.: 4494/Del/2014 A.Y: 2011-12 Dated: 31st July, 2018

 

Section 153A, Rule 27 - Any issues other than those relating to undisclosed income which come to the AO’s knowledge while conducting enquiries relating to Search shall not be considered by AO for making assessment u/s. 153A if normal assessment for such relevant assessment years had already been completed earlier.

 

Rule 27 gives liberty to the respondent to raise any ground which had been decided against him by the first appellate authority.

 

FACTS


 Assessment for six years was reopened u/s. 153A. Against these, the assessee filed appeals for all the six years. Out of these, the department preferred appeals to the Hon’ble ITAT for three assessment years. In these three appeals, the CIT(A) had dismissed the legal contentions of the assessee but gave relief on merits. Therefore, assessee had not filed any cross appeal or cross objection, but it raised a legal ground by invoking Rule 27 of ITAT Rules, challenging the validity of additions made in the impugned assessment orders on the ground that the same were beyond the scope of section 153A. CIT(DR) objected to the admission of the petition made under Rule 27 and submitted that the respondent assessee cannot be permitted to raise a ground or an issue which was decided against it which could only be done by filing of appeal.

 

The second issue raised in the appeal was whether issues already considered in the assessments completed earlier, which had attained finality, can be re-examined u/s. 153A by the assessing officer?

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