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2018 (8) TMI 341 - AT - Income TaxValidation of notice issued u/s 153C - without having any incriminating material - Held that:- As per the provisions of section 153C A.O. is required to initiate the proceedings and issue the notice only on the basis of money, bullion, jewellery, other article or thing seized or requisitioned belonged to or any books of accounts or documents seized or requisitioned pertains to or pertain to the assessee. It is settled law that in the case of completed assessments, no addition under section 153C is permitted to be made without having the seized material. This Tribunal in the case of Lalitha Devi vs. Assistant Commissioner of Income Tax, (2018 (4) TMI 337 - ITAT VISAKHAPATNAM) held that invoking provisions of section 153C of the Act without having incriminating material is bad in law. In the instant case the Ld DR did not place the satisfaction recorded by the AO for issuing the notice u/s 153C. From the Ld. CIT(A) order foundation for the issue of notice u/s 153C was the letter dated 08/10/2006 and the affidavit executed on 01/01/2008 which were scanned by us and found that there was no indication of any financial transaction leading to understatement of income except the mention of purchase of property on 05/02/2004 which is relevant to the Assessment Year 2004-05 and are not relevant to the assessment years under consideration. Therefore, the said documents cannot be held to be the incriminating material for the purpose of initiating the proceedings under section 153C of the Act. Earlier the assessments in this case are completed, since, the time limit for issue of notice u/s 143(2) got expired before the date of search, the AO did not make any addition in the assessment orders on the basis of the seized material. - Decided in favour of assessee
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