Tarun Agarwala, J. - (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: "A search and seizure operation under s. 132 of IT Act, 1961 was carried out on 19th April, 2006 at the business and residential premises of Shri Brij Mohan Pandey and his family members. This group (Pandey Group) is engaged in business of manufacturing/production of Kaththa and Khaini and trading of Kaththa, Khaini and raw material used in manufacturing of Pan Masala. The assessee group also has a petrol pump in the name of Yandana Filling Station on G.T. Road towards Fatehpur. During the course of search and seizure operation, various books of accounts, documents and loose papers were found and seized. The details of relevant documents and loose papers are as under: Panchnama dt. 19th April, 2006 drawn at premises No. 53/12, Naya Ganj, Kanpur, covered under s. 132 of the IT Act, 1961: JUDGEMENT_158_LAWS(ALL)10_2015.htm In the case of Shivam Gramodyog Sansthan, above details and books of accounts were found and seized during the course of search and seizure operation at premises No. 53/12, Naya Ganj, Kanpur vide Panchanama dt. 19th April, 2006, for the purpose of verification and investigation of the entries appearing in these books of accounts and to ascertain the true and correct income of Shivam Gramodyog Sansthan (AOP); action under s. 153C of the IT Act, 1961 is required in the case of the assessee. In view of these facts, I am satisfied that it is a fit case for initiation of proceeding under S. 153C. Accordingly, proceedings under s. 153C r/w 153A are being initiated in the case of assessee for asst. yrs. 2001 -02 to 2006 -07 and notice under s. 153C r/w 153A is being issued for the verification and assessment of correct income of the assessee.";