Smt. Geetanjali Bhayana Vs DCIT (ITAT Delhi)
ITAT Delhi held that satisfaction note recorded before initiation of the proceedings u/s 153C of the Income Tax Act is not a valid satisfaction. Accordingly, proceedings u/s. 153C of the Income Tax Act is quashed since based on invalid satisfaction.
Facts- A search and seizure operation was carried out at various premises of Shri Kuldeep Bishnoi Group and its associates on 23.07.2019. Various documents/books of accounts etc. were found and seized and statements of various persons were recorded. It was found that some incriminating material found and seized contained some entries related to the assessee. Subsequently, satisfactions were recorded by AO of the searched person and the documents alongwith the satisfaction note was handed over to the AO of the assessee. Thereafter the AO of the assessee recorded his satisfaction note on 03.12.2021 and initiated the proceedings u/s 153 of the Act for the assessment years 2014-15 to AY 2020-21 and, notice u/s 153C was issued on 06.12.2021.
After considering the submissions made and material furnished by the assessee, the AO assessed the income of the assessee at INR 58,29,693/- vide assessment order dated 30.03.2023 passed u/s 153C r.w.s. 143(3) of the Act wherein an addition of Rs. 48,41,900/- was made being GP @ 35% on the cash transactions of Rs. 1,38,34,000/- alleged as undisclosed sales. CIT(A) dismissed the appeal of the assessee. Being aggrieved, the present appeal is filed.
