The Tax Publishers2019 TaxPub(DT) 0401 (Ind-Trib)

INCOME TAX ACT, 1961

Section 153C

Assessment proceedings initiated under section 153C in case of other person, i.e., assessee without recording satisfaction by AO having jurisdiction over searched person, was void ab initio.

Search and seizure - Assessment under section 153C - Validity - Non-recording of satisfaction by AO of searched person

AO, pursuant to search conducted in case of certain group, initiated proceedings under section 153C in case of other person, i.e., assessee and made addition. Assessee challenged this on the ground of non-recording of satisfaction by AO of searched person. Held: No satisfaction note was prepared by AO of the searched person setting out properly the details of various incriminating material/document belonging to 'other person', i.e., assessee in the instant case at the time of handing over such incriminating material/documents related to the other person to the AO having the jurisdiction of such 'other person'. Therefore, proceedings initiated under section 153C over the assessee were void ab initio.

Relied:CIT v. Calcutta Knitwears (2014) 43 Taxmann.com 446 (SC) : 2014 TaxPub(DT) 1547 (SC).

REFERRED :

FAVOUR : In assessee's favour.

A.Y. : 2008-09 & 2009-10



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