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2014 (5) TMI 109 - ITAT DELHIValidity of assessment u/s 153C r.w. section 153A of the Act – Incriminating documents - Held that:- The common satisfaction was recorded by the AO for initiation of proceedings u/s 153C of the Act in respect of the 19 parties - action u/s 133A of the Act was taken at the premises of the assessee on the same date - Various documents were found and seized - Statements of various persons including Shri R.K. Miglani were also recorded u/s 132(4) / 133A of the Act - UPDA is a registered society formed by the distilleries of UP for its welfare to jointly take up their cause with various authorities on different issues - the very basis for initiation of the proceedings u/s 153C against the parties remained the incriminating documents found at the residence of Shri Miglani and also from the office of UPDA - The documents mentioned in the satisfaction note are annexure A-1, A-2, in common and B-2, B-3 in the case of the assessee - on perusal of these documents, it could not be understood as to how the case of the assessee stands on different footing than the other 18 assessees in the cases of most of whom the Tribunal on the basis of the same satisfaction note has held the proceeding initiated in those case u/s 153C as invalid - In those cases also Annexures A-1 to A-10 were the subject matter, on consideration of which the Tribunal came to the conclusion that invocation of section 153C was not valid as no incriminating documents belonging to the assesee were found. The documents were not found from the possession of the present assesee nor these are in the handwriting of the assessee or its employee(s) - These were found from the possession of Shri R.K. Miglani and UPDA, there is no evidence of any receipt or payment of cash in respect of which addition was made - The word ‘belonging’ may be understood in the sense of ownership or something little lesser than ownership but of course more than mere reference of assesee on a documents found and seized from the possession of others without any corroboration - The documents noted in satisfaction to proceed u/s 153C do not make reference to any receipt or payment of cash and are not of any incriminating nature. There is no reference to any amount paid or received and as such the document is not relevant even in the context of satisfaction note recorded by the AO – the documents do not belong to various parties referred to in the document – the documents were not found from the possession of the assesee nor these documents are in the handwriting of the assessee or its employees – the documents marked as Annexure A-1, A-2, B-2 and B-3, the subject matter of the satisfaction recorded by the AO to initiate proceedings u/s 153C against the present assessee do not belong to the assessee to justify initiation of proceedings u/s 153C of the Act against the assessee – Decided in favour of Assessee.
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