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The Tax Publishers2017 TaxPub(DT) 1787 (Del-HC) Pr. CIT v. Instronics Ltd. INCOME TAX ACT, 1961 --Search and seizure--Assessment under section 153CRecording of satisfaction----Since satisfaction note was recorded by AO of searched person who also happened to be AO of assessee (other person) as well to effect that seized documents belonged to assessee, issuance of notice under section 153C on basis of such note was justified.--The search action was under taken in the cases BKD, PD and MBPL, which were, associates of a group of companies. During the course of the search, certain documents belonging to the assessee, were found and seized and after about two years of the search, the AO of the searched person recorded a satisfaction that some of the documents belong to the assessee. Thereafter, notice under section 153C was issued to assessee to file his return of income, which was filed. AO finalized the assessment under section 143(3) read with section 153C by making additions to the returned income. Assessee raised objection to the assumption of jurisdiction under section 153C on the ground that the satisfaction note recorded was by the AO of the assessee and not the AO of the searched person. *Held:* The satisfaction note recorded by the AO of the searched person, also happened to be the AO for the assessee (the other person) as well. This was clear from the sentence in the satisfaction note which reads: 'The undersigned is the jurisdictional AO of these cases.' Further, the AO of the searched person had recorded the satisfaction that the seized documents belonged to the assessee. Therefore, the satisfaction note in the present case, satisfies the requirement of the law. Therefore, issuance of notice under section 153C on basis of such note was justified. Income Tax Act, 1961, Section 153C *REFERRED :* FAVOUR : Against the assessee. A.Y. : IN THE DELHI HIGH COURT S. MURALIDHAR & CHANDER SHEKHAR, JJ. Pr. CIT v. Instronics Ltd. ITA Nos. 613 to 615, 801, 805, 809, 814, 840, 848 & 849 of 2016 & Ors. SUBSCRIBE FOR FULL CONTENT

The Tax Publishers2017 TaxPub(DT) 1787 (Del-HC)

Pr. CIT v. Instronics Ltd.

INCOME TAX ACT, 1961

--Search and seizure--Assessment under section 153CRecording of satisfaction----Since satisfaction note was recorded by AO of searched person who also happened to be AO of assessee (other person) as well to effect that seized documents belonged to assessee, issuance of notice under section 153C on basis of such note was justified.--The search action was under taken in the cases BKD, PD and MBPL, which were, associates of a group of companies. During the course of the search, certain documents belonging to the assessee, were found and seized and after about two years of the search, the AO of the searched person recorded a satisfaction that some of the documents belong to the assessee. Thereafter, notice under section 153C was issued to assessee to file his return of income, which was filed. AO finalized the assessment under section 143(3) read with section 153C by making additions to the returned income. Assessee raised objection to the assumption of jurisdiction under section 153C on the ground that the satisfaction note recorded was by the AO of the assessee and not the AO of the searched person. Held: The satisfaction note recorded by the AO of the searched person, also happened to be the AO for the assessee (the other person) as well. This was clear from the sentence in the satisfaction note which reads: 'The undersigned is the jurisdictional AO of these cases.' Further, the AO of the searched person had recorded the satisfaction that the seized documents belonged to the assessee. Therefore, the satisfaction note in the present case, satisfies the requirement of the law. Therefore, issuance of notice under section 153C on basis of such note was justified.

Income Tax Act, 1961, Section 153C

REFERRED :

FAVOUR : Against the assessee.

A.Y. :

IN THE DELHI HIGH COURT

S. MURALIDHAR & CHANDER SHEKHAR, JJ.

Pr. CIT v. Instronics Ltd.

ITA Nos. 613 to 615, 801, 805, 809, 814, 840, 848 & 849 of 2016 & Ors.