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2018 (1) TMI 1551 - AT - Income TaxValidity of assessment order u/s 153C - fulfillment of requirement of Section 153C before issuance of notice - assessee contended that satisfaction note is not in accordance with the satisfaction as contemplate u/s 153C - Held that:- The A.O has not mentioned that the agreement reflects that there was any unaccounted transaction or unaccounted payments/receipts the business activities of the assessee in-fact was confirmed by the said agreement and all the documents were before the Assessing Officer during the regular assessment proceedings. Thus, there was no incriminating material or document found in respect of Section 153C proceedings. The Ld. DR’s contentions that it is an established practice of the Income Tax Department that not everything found at the time of search and cease. Only such material is seized which is prima facie incriminating in nature. The Revenue cannot simply rely on their departmental Endeavour practice, they have to strictly follow the statute while conducting the search adhering to Section 153C. If the practice is supported by law/statute then it can be allowed but if the material which is relevant to the assessee’s escapement of income has not been seized then merely on the surmises or conjectures that cannot be called as incriminating material which was properly demonstrated by the assessee during his regular assessment. Order of CIT(A) holding the order as void ab-initio is correct - Decided against the revenue.
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