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TMI Blog2018 (1) TMI 596X X X X Extracts X X X X X X X X Extracts X X X X ..... nd disposed-off by way of this common order for the sake of convenience. ITA 111/Vizag/2015 (A.Y. 2008-09): 2. A search & seizure operation was carried out in the group cases of the assessee on 3.2.2009. Consequently, the A.O. issued notice u/s 153C of the Income Tax Act, 1961 (hereinafter called as 'the Act') and completed the assessment u/s 143(3) r.w.s. 153C of the Act on total income of Rs. 45,53,768/-. 3. The assessee constructed the apartments at Door No.65-2- 6/4, Narasanna nagar, Kakinada in 1011 sqare yards of site taken on development basis from the land lord and as per the agreement the assessee has to construct 34 flats in total built up area of 29600 square feet and to hand over 9 flats with built up area of 8662 sq ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fore the addition of Rs. 27,14,240/- may be deleted. 3. The CIT(A) ought to have appreciated the fact that there is no difference in sale value per flat and books being not rejected, ought to have accepted the returned income. 4. Your Appellant submits that there is no incriminating material seized and income offered under section 132(4) for AY 2009-10 has been admitted, based on post search enquiries or on estimation of sale price per Sq. Yrd, no addition can be made, Your Appellant prays that the addition be deleted. 5. The Ld. CIT(A) confirmed the addition to the extent of Rs. 27,14,240/-. During the appellate proceedings the Ld. CIT(A) examined the statements recorded from the flat buyers and observed that there was difference i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he parties, perused the materials available on record and gone through the orders of the authorities below. In the assessee's case, the assessment was completed on estimation of income in respect of the flats sold on the basis of the statements recorded from the flat buyers Mr. V.V.S. Venugopal and others u/s 131 of the Act. The AO observed that the books of accounts were not located during the search/ survey proceedings, hence held that the assessee was not maintaining the books of accounts and accordingly initiated the proceedings u/s 153C of the act. However it was contended that the assessee was maintaining the regular books of accounts and the same were duly audited by the qualified accountant and the assessee had filed the return of i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... idencing the undisclosed income. In the assessee's case no such evidence was found during the course of search in the group cases. 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 group cases. Therefore, we hold that the notice issued u/s 153C of the Act is not sustainable and accor ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hat your appellant has already admitted Rs. 20,00,000/- durng the search and the same has been included in the return of income, therefore there is no need to make additions of Rs. 10,69,700/-. 3. The CIT(A) erred in law and facts of the case in not accepting the method of accounting followed by your Appellant. Your Appellant has been following project completion method and admitted income accordingly, therefore the addition of Rs. 10,69,700/- may be deleted. 4. The CIT(A) ought to have appreciated the fact that there is no difference in sale value per flat and books being not rejected, ought to have accepted the returned income. 5. Your Appellant submits that there is no incriminating material seized and income offered under secti ..... X X X X Extracts X X X X X X X X Extracts X X X X
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