Smt. Prema Devi Vs DCIT (ITAT Chennai)
ITAT Chennai held that assessments under section 153C of the Income Tax Act stands vitiated in law since there is complete absence of proper and independent satisfaction as required u/s. 153C. Accordingly, appeal allowed.
Facts- On 22.05.2012, a search and seizure operation u/s.132 of the Act, was conducted at the business premises of Shri Shanthilal. In the course of this operation, the officials also visited the residential premises on the first floor, where Smt.Prema Devi was residing. During the search, a diary was seized from her residence. The said diary bore the printed title “Numeric” pertaining to the calendar year 2007 and is alleged by the department to contain records of money-lending transactions pertaining to the late Shri Dharmichand Jain.
A satisfaction note was thereafter recorded on 23.09.2014. Consequent to recording of satisfaction notice, as per provision of section 159 r.w.s.2(29) of the Act notice u/s.153C was issued to Mrs. Prema Devi L/R of the assessee late Sri Dharmichand Jain for various assessment years beginning from AY:2007-08 to 2012-13.
The assessment proceedings were initiated, and assessments were completed u/s.143(3) r.w.s. 153C of the Act vide order dated 31.03.2015 for the Assessment Years 2008-09 to 2012-13, making various additions. CIT(A) dismissed the appeal. Being aggrieved, the present appeal is filed.
