Case Law Details
R.N. Shetty Trust Vs ACIT (ITAT Bangalore)
As per Section 153C of the Act, the Assessing Officer of searched person shall proceed against such other person on reaching satisfaction that any undisclosed income belonging to such other person over whom he has no jurisdiction then he has to transmit the seized material to the Assessing Officer having jurisdiction over such other person, in such a case, the Assessing Officer who has jurisdiction will proceed against such other person by issuing Notice as contemplated u/s. 153C r.w.s. 153A of the Act. In the present case, the assessee repeatedly asked for the order sheet entry relating to recording of satisfaction, however the Assessing Officer given a reply that it is a confidential document and it cannot be furnished to the assesses.
Even before the CIT (Appeals), the assesses have raised the issue of providing order sheet entry and recording of satisfaction. The CIT (Appeals) has not provided the same and dismissed the appeals in a summary manner observing that document found in the course of search constitute as an incriminating material that points to the undisclosed income of a person other than a searched person, then the proceedings u/s. 153C r.w.s. 153A of the Act has been rightly initiated.
However, the CIT (Appeals) not given finding that what basis he came to such conclusion that there was a recording of satisfaction by the Assessing Officer of searched person. Hence we are of the opinion that recording of satisfaction is legal issue which shall be examined by the learned CIT (Appeals) after calling the relevant record from the Assessing Officer of searched person and decide the issue afresh.
With this observation, we remit this issue to the file of CIT (Appeals) for fresh adjudication. Regarding the objection by the ld. DR that the assessee has co-operated with the Assessing Officer and precluded from raising this issue before this Tribunal have no merit since the assessee from the beginning sought the copies of recording of satisfaction by the Assessing Officer of searched person.
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