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2014 (12) TMI 472 - AT - Income TaxIncriminating documents seized during search – Validity of notice u/s 153C – Held that:- The basis for initiation of proceedings u/s. 153C is the information/valuables/documents seized belonging to persons other than covered u/s. 153A - there is no indication as to the information on the valuables/ documents seized during from the search proceedings conducted in the case of M/s. Midwest Granites (P) Ltd(MGPL), and it's directors, and no such valuables or documents relatable/belong to the assessee - no addition was made based on the incriminating material found during the course of search proceedings conducted in case of MGPL, which is an associate concern of the assessee company - additions made in course of assessment proceedings u/s. 153A should be derived from the incriminating material found during the course of search - The assessment proceedings u/s. 153C are also considered as proceedings u/s. 153A, since 153C is read with Sec. 153A. The assessments for the AYs 2003-04, 2004-05, 2005-06, 2006-07, 07-08 and 2008-09 were unabated and treated to have been concluded – AO has not specifically pointed to any availability of seized/ incriminating material related to the assessee found during the search proceedings conducted in case of MGPL or the directors of the group companies - There is no specific reference to any material or valuables that are relatable to the assessee and have become the basis for making the additions or disallowances, and prompt the assessing officer to re-agitate the issues which were otherwise settled in the unabated assessments - the various additions made by the AO in the assessment orders for the AY 2003- 04 is not justified and are directed to be deleted - there is no incriminating material found in the course of search - as there is already finding that no incriminating material had been found pertaining to assessee, very issuance of notice u/s 153C itself is bad - there is no merit in Revenue contention – Decided against revenue.
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