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2019 (7) TMI 1030 - AT - Income TaxAssessment u/s 153C or 153A - assessee submitted that a search u/s 132 was conducted on 12.09.2013 in the case of the assessee as evidenced from panchnama dated 12.09.2013 and argued the AO ought to have initiated the proceedings u/s 153A, but not u/s 153C - HELD THAT:- As per the provisions of section 153C of the Act, assessments required to be completed u/s 153A in the case of the person where the search is initiated. In the instant case, search was initiated in the case of G.S.L.Educational Society and the assessee’s premises were also searched for incriminating material of G.S.L.Educational Society. Apart from the above, during the search in the premises of Shri Adapa Rambabu, Accountant of the firm, incriminating material belonging to the assessee was found. Therefore, in the assessee’s case, correct action for search assessment is initiation of proceedings u/s 153C. Accordingly, we uphold the action of the AO in issuing the notice u/s 153C of the Act and dismiss the assessee’s appeal on this ground. Time limit for issue of notice u/s 143(2) was expired for all the impugned assessment years and no addition is permissible without the incriminating material - HELD THAT:- It is settled issue that for initiating the proceedings u/s 153C of the Act, it is incumbent upon the A.O. to have the incriminating material evidencing the undisclosed income. In the assessee’s case no such evidence was found during the course of search in the case of G.S.L.Educational Society. As per the provisions of section 153C of the Act, it is mandatory to have the satisfaction of the A.O. that money, bullion, jewellery or other valuable article or thing or any books of accounts, documents seized or requisitioned pertains to or relates to the assessee, which means that unless there is an incriminating material belonging to the assessee is found, the action u/s 153C of the Act is not permissible. In the assessee’s case there was no incriminating material found and seized from the premises of the searched person. As discussed earlier the material found during the course of search was related to the A.Y.2014-15. Therefore, we hold that the notices issued u/s 153C for the impugned assessment years are unsustainable. See SINHGAD TECHNICAL EDUCATION SOCIETY [2017 (8) TMI 1298 - SUPREME COURT] - Decided in favour of assessee.
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