SHIVAN GRAMODYOG SANSTHAN Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) The present appeals relate to the asst. yrs. 2003 -04 to 2006 -07. All the appeals raise the same question and are being decided together. A search and seizure operation under s. 132 of the IT Act (hereinafter referred to as the "Act") was carried out on 19th April, 2006 at the business and residential premises of Sri Brij Mohan Pandey and his family members (hereinafter called the "Pandey Group"). This Pandey Group was engaged in the business of manufacture of Kattha and Khaini and was also in the business of trading of Kattha and Khaini and other raw materials used in the manufacture of Pan Masala. On the same day, a search was also conducted at the factory premises of the assessee -appellant at E -1, E -13, Site -1, UPSIDC Industrial Area, Rania, Kanpur Dehat. Incriminating material against the assessee -appellant was found at their factory premises and also at the premises of Anurag Pandey of the Pandey Group. The incriminating documents found at the premises of Anurag Pandey were labelled as BK -16, 17, 18, 19 and LP -2. The incriminating documents, which were seized at the factory premises of the assessee -appellant were labelled as BK -2, BK -5, BK -5 and BK -5.

(2.) On the basis of the search, proceeding against the assessee -appellant was initiated under s. 153A of the Act. During the course of the proceeding, the IT authority found that the warrant of authorisation issued under s. 132 of the Act was in the name of "Shivam Gram Udyog Sansthan (P) Ltd." and was not in the name of the appellant, namely, "Shivam Gram Udyog Sansthan". Since the warrant of authorisation was issued in the name of a wrong entity, the IT authority suo moto dropped the proceedings initiated under s. 153A of the Act.

(3.) On the basis of the incriminating documents found against the assessee at the premises of Anurag Pandey, a satisfactory note was prepared indicating that the competent authority was satisfied that proceedings under s. 153C of the Act should be initiated against the appellant in relation to the documents, so seized, at the premises of Anurag Pandey. Accordingly, notices under s. 153C r/w s. 153A of the Act were issued to the appellant. The satisfactory note, so prepared for initiation of the proceeding under s. 153C of the Act, is as under: