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TMI Blog2019 (7) TMI 1030X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nam vide ITA No.01-03/2016-17/CIT-(A)-3/VSP/2017-18 dated16.03.2018 for the Assessment Year (A.Y.) 2009-10, 2012-13 and 2013-14. Since the grounds raised in these appeals are common, these appeals are clubbed, heard together and a common order is being passed for the sake of convenience as under. 2. Ground No.1 2 are related to the issue of notice u/s 153C of the Income Tax Act, 1961 (in short Act ). In the instant case search and seizure operation was conducted in the case of M/s G.S.L.Educational Society, Rajahmundry on 25.07.2013. As per the assessment order, during the course of search operations, certain incriminating material was found relating to the assessee at the residence of Sri Adapa Rambabu, Accountant of th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g jurisdiction u/s 153C. 3. Aggrieved by the order of the Ld.CIT(A), the assessee is in appeal before this Tribunal. During the appeal hearing, the Ld.AR filed paper book and taken our attention to Column A of panchnama dated 12.09.2013 , wherein, it was mentioned that warrant was issued on GSL Educational Society, Rajahmundry, Sri Pattapagalu Venkata Rao, the assessee. The Ld.AR further 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 of the Act. The Ld.AR submitted that the notice u/s 153C is invalid, hence, requested to quash the notice and allow the appe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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. 5.1. The next contention of the assessee is that in the instant case, the 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. The details of the return of income filed and the time limit for issue of notice u/s 143(2) are furnished as under : A.Y. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ase 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 ho ..... X X X X Extracts X X X X X X X X Extracts X X X X
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