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2018 (5) TMI 1322 - AT - Income TaxAssessment u/s 153A - addition to income - Held that:- The Co-ordinate Benches in the case of Y.V. Anjaneyulu Vs. DCIT, Vijayawada [2017 (6) TMI 547 - ITAT VISAKHAPATNAM) held that assessments U/s. 153A could not be made on the basis of income returned by assessee or on the basis of books of account of assessee where no incriminating material had been found from possession of assessee. CIT(A) inspite of written submissions made before him and contentions raised, did not consider the above principles laid down by the judicial authorities. Instead the issue discussed by the AO whether the proceedings U/s. 153A are mandatory or not have been upheld, when there is no dispute with reference to initiation of proceedings. The dispute is only with reference to additions made which assessee contends that they are not based on any incriminating material found in the course of search. This aspect has not been examined by the Ld.CIT(A) at all. Once the legal issue is examined, it is incumbent on the CIT(A) to decide the merits of the addition also. If he finds that this issue was already decided in earlier round of appeals, then, he should follow the same rather than dismissing the grounds raised. For these reasons, we are not in a position to upheld the orders of the CIT(A). Since the AO has already considered (wrongly) the directions of ITAT, we do not find it necessary to set aside again to the file of AO. Therefore the issue is set aside to the file of CIT(A) to examine the additions in the light of the principles laid down by the higher judicial authorities and give clear findings whether any proceedings are pending on the date of search or whether any proceedings have been abated, whether any incriminating material was found for making additions in each of the assessment years and on each of the additions made.
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