CIT vs. Smt. Shaila Agarwal - Allahabad High Court

For AY 2002-03, an addition of Rs. 99 lakhs was made by the AO & confirmed by the CIT (A). During the pendency of the appeal before the Tribunal, a search under Sec.132 was conducted and Sec.153A proceedings were initiated. The Tribunal held that in view of the Sec.153A notice, the assessments of the six preceding assessment years prior to the date of search abated and that assessments pending in appeal would stand merged in the fresh assessment to be made by the AO u/s 153A pursuant of the search. The AO was directed to reconsider the additions in the Sec.153A assessment. On appeal by the department, HELD reversing the Tribunal.