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2019 (7) TMI 530 - AT - Income TaxAssessment u/s 153C - proof of incriminating material found in search - HELD THAT:- This proposition laid down by the Hon’ble jurisdictional High Court in the case of IBC Knowledge Park P. Ltd. [2016 (5) TMI 372 - KARNATAKA HIGH COURT] is impliedly approved by the Hon’ble Apex Court in the case of CIT Vs. Sinhgad Technical Educaiton Society [2017 (8) TMI 1298 - SUPREME COURT] as the Hon’ble Apex Court took the view that proceedings under section 153C of the Act can be initiated only in respect of those Assessment Years for which there is incriminating seized material which prima facie represent undisclosed income. Revenue put forth the proposition that the learned CIT(A) ought to have sustained even those additions based on material, not relied upon to invoke proceedings u/s 153C and that the CIT(A) ought to have exercised his co-terminus powers to do so. After due consideration thereof, we are unable to concur with this proposition; in as much as the CIT(A) could not have proceeded further in sustaining those additions for the reasons that the invoking of the provisions of section 153C in the case on hand has no legs to stand on and the entire proceedings is void-ab-initio. In this view of the matter, we are of the opinion that the CIT(A) has rightly cancelled the orders of assessment for Assessment Years 2008-09, 2011-12 and 2012-13. Consequently, ground Nos. 1 and 2 of Revenue’s appeals for Assessment Years 2008-09, 2011-12 and 2012-13 are dismissed. Initiation of proceedings as barred by limitation in view of the proviso to section 153C - HELD THAT:- We are inclined to concur with the argument put forth by the assessee that in the event the initiation of proceedings under section 153C is found to be in order, the year of search in the case on hand is to be reckoned as Assessment Year 2015-16 as the satisfaction to initiate proceedings under section 153C of the Act was arrived on 15.09.2014 and the six Assessment Years immediately preceding the same would commence from Assessment Year 2009-10 and end with Assessment Year 2014-15. In these circumstances, Assessment Year 2008-09 is outside the ambit of section 153C of the Act in the case on hand. - CIT(A) was correct in deciding this ground in favour of the assessee. Initiation of proceedings under section 153C of the Act in the case on hand, for Assessment Years 2008-09, 2011-12 and 2012-13, is bad in law, thereby rendering the assessment proceedings for the impugned Assessment Years void-ab-initio; we refrain from deciding on the other grounds raised by Revenue on merits for these years as they are rendered academic in nature.
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