Case Law Details
Shri Sushil Golecha Vs ACIT (ITAT Indore)
Conclusion: Initiation of assessment proceedings under section 153C in case of other person, i.e., assessee without issuing proper satisfaction note by AO of the searched person in favour of AO having jurisdiction of such other person, the proceedings initiated u/s 153C was void-ab-initio.
Held:
Due to search conducted in case of certain group, AO initiated proceedings under section 153C in case of other person, i.e., assessee and made addition to the total income. It was held the case of CIT Vs Calcutta Knitwears made amply clear that satisfaction note has to be prepared by the Assessing Officer of the searched person setting out properly the details of various incriminating material/document belonging to the “other person” at the time of handing over such incriminating material /documents related to the other person to the Assessing Officer having the jurisdiction of such “other person”. If this precondition of issuing proper satisfaction note by AO of the searched person in favour of AO having jurisdiction of such other person is not complied then the proceedings initiated u/s 153C are void ab initio. Respectfully following the same, it was concluded that as the revenue authorities had failed to place on record the satisfaction note issued by AO of searched person in favour of AO having jurisdiction of the other person i.e. assessee in this case, the proceedings initiated u/s 153C in the case of assessee needed to be quashed.
FULL TEXT OF THE ITAT JUDGEMENT
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