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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 ..... he 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 accordingly quashed. This view is upheld in the case of CIT Vs. Sinhagad Technical Education Society (2017 (8) TMI 1298 - SUPREME COURT OF INDIA). Thus we hold that the notice issued u/s 153C of the Act is unsustainable and accordingly quashed. - Decided in favour of assessee - I.T.A.No.111 And 112/Vizag/2015 - - - Dated:- 10-1-2018 - SHRI V. DURGA RAO, JUDICIAL MEMBER AND SHRI D.S. SUNDER SINGH, ACCOUNTANT MEMBER For The Appellant : Shri G.V.N. Hari, AR For The Respondent : Shri Debakumar Sonowal, DR ORDER PER Bench: ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ked out the realizable value of ₹ 2,61,72,500/- for assesse s share of 20938 sft and cost of construction was estimated at ₹ 650/- for sft. During the year under consideration the assessee sold 12 flats with built up area of 14,261 sft and the AO estimated the proportionate sale consideration at ₹ 1,78,26,250/- @ 1250 per sft and the cost of construction of the sold flats was estimated at ₹ 1,31,04,482/- and arrived at the profit of ₹ 47,21,768/- and made the addition of ₹ 40,15,931/- being the difference amount. 4. Aggrieved by the order of the CIT(A), the assessee is in appeal before this Tribunal and raised the following grounds against the order of the CIT(A). 1. Your Appellant submits that in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... onsideration at ₹ 27,14,240/- for the area sold during the year and confirmed the addition to the extent of ₹ 27,14,240/- and deleted the balance addition. 6. Aggrieved by the order of the Ld.CIT(A) the assessee is in appeal before us. During the appeal hearing, the assessee raised the validity of assessment made u/s 153C r.w.s. 143(3) of the Act in the absence of incriminating material. During the appeal hearing, the Ld. A.R. submitted that the A.O. made the addition entirely on surmises and assumptions and on estimation basis and there was no incriminating material found during the course of search what so ever relating to the assessee for assessment year 2008-09. Hence, the issue of notice u/s 153C of the Act without incri ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ited the books of accounts at the time of survey. Therefore the observation of the AO that the assessee was not maintaining the books of accounts was not based on any basis hence cannot be accepted. Merely because of the books of accounts could not be traced at the time of survey/search, it cannot be presumed that the books of accounts are not maintained unless all out efforts are made and clear finding is given. Therefore we are of the view that the assessee was maintaining the books of accounts and on the date of survey the department could not locate the books of accounts. From the above discussion it is established that the assessee has maintained the books of accounts. There was no incriminating material found during the course of sear ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y the assessee is allowed. ITA No.112/Vizag/2015 (A.Y. 2009-10): 10. A search u/s 132 of the Act was conducted in the group cases of the assessee on 3.2.2009. Consequently, the notice u/s 153C of the Act was issued in this case and the assessment was completed u/s 143(3) of the Act on total income of ₹ 16,13,333/-. During the search proceedings u/s 132 of the Act, the assessee had admitted the additional income of ₹ 20 lakhs u/s 132(4) of the Act and accordingly filed the return of income. However, the assessing officer completed the assessment estimating the income. Aggrieved by the order of the A.O., the assessee went on appeal before the CIT(A) and the Ld. CIT(A) sustained the addition of ₹ 10,69,700/- and de ..... X X X X Extracts X X X X X X X X Extracts X X X X
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