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2018 (7) TMI 2021 - AT - Income TaxValidity of assessment proceedings u/s. 153C - absence of a finding in the satisfaction notes for the documents found and seized are of incriminating nature - HELD THAT:- The legislature has never intended to provide a blanket license to the revenue for initiating proceedings u/s.153C in the cases of all such assessees of whom the documents are found and seized in search of a 3rd party. The documents found and seized should be prima facie of incriminating nature for providing the jurisdiction to initiate proceedings u/s.153C on such persons. In this case, following the ratio of IBC Knowledge Park Pvt. Ltd. [2016 (5) TMI 372 - KARNATAKA HIGH COURT] and for the other reasons as deliberated above, we hold that in the absence of a finding in the satisfaction notes for the documents found and seized are of incriminating nature, no legally valid proceedings u/s.153C can be initiated. In the present case, undisputedly, there is no such finding. In view of all the above discussion, we are, therefore, of the considered opinion that the initiation of proceedings u/s.153C cannot be validated on this count too. Accordingly, the proceedings u/s.153C and consequential assessment deserve to be quashed. Once, the impugned assessment u/s. 153C of the Act has been quashed on legal aspect of the case, as discussed above, we need not to adjudicate upon extensive arguments made by both the parties on the merits of the addition made and sustained by the authorities below. - Decided in favour of assessee.
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