INCOME TAX ACT, 1961

Section 153C

Search and seizure - Assessment under section 153C - Recording of satisfaction note - Not in file of assessee searched

A search under section 132 was conducted by Investigation Wing of Department in case of a group concern. Assessee's case was proposed for centralization by investigation wing on the basis of certain documents found and AO wrote a satisfaction note, and held that these papers belong to assessee and issued notice under section 153C to assessee. AO made addition of a sum holding the view that total amount of Rs. 14.98 crores was to be paid by assessee out of which Rs. 6.28 crores have been paid by cheques and balance amount of Rs. 8.70 crores was paid out of books. Held: CIT(A) while giving the finding observed that satisfaction note was not recorded in the file of assessee searched under section 132 and documents claimed to be owned by the assessee was transferred to the file of assessee. Therefore, jurisdiction assumed under section 153C in the case of assessee was not in accordance with provisions of section 153C wherein satisfaction note in searched persons proceeding has to be recorded separately. Since in assessee's case no satisfaction was recorded separately by AO of searched person, therefore, appeal of Revenue was dismissed.

REFERRED : Pr. CIT v. Sheetal International Pvt. Ltd. 2017- TIOL-1355-HC-DEL-IT) : 2019 TaxPub(DT) 0362 (Del-HC), Pr. CIT v. Instronics Ltd. 2017 82 taxmann.com 357 (Delhi) : 2017 TaxPub(DT) 1787 (Del-HC), Ganpati Fincap Services Pvt. Ltd. v. CIT (2017) 82 Taxmann.com 408 (Delhi) : 2017 TaxPub(DT) 1801 (Del-HC)

FAVOUR : In assessee's favour.

A.Y. : 2007-08

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