ACIT Vs Subhash Jivraj Jain (ITAT Pune)
ITAT Pune held that satisfaction note is required to be recorded u/s 153C for each assessment year and a consolidated satisfaction note recorded for different assessment years would vitiate the entire assessment proceedings. Accordingly, appeal of revenue dismissed.
Facts- A search action u/s 132 of the Act was carried out in the Yuvraj Dhamale group of cases on 26.09.2017. During the course of search action, various incriminating documents were found and seized which also include certain documents which contain information relating to the assessee. In response to the notice u/s 153C of the Income Tax Act, 1961, the assessee filed his return of income on 26.05.2021 declaring Nil income. The Assessing Officer made substantive addition of Rs.1,05,50,000/- in the hands of assessee as ‘income from other sources’ and also another addition of Rs.1,05,50,000/- on protective basis.
CIT(A) allowed the appeal and deleted the addition. Being aggrieved, revenue has preferred the present appeal.
Conclusion- Held that the satisfaction note is required to be recorded u/s 153C for each assessment year and a consolidated satisfaction note recorded for different assessment years would vitiate the entire assessment proceedings. Since in the instant case a consolidated satisfaction note has been prepared for assessment years 2012-13 to 2018-19, therefore, such consolidated satisfaction note being not in accordance with law, the entire assessment proceedings are liable to be quashed. We hold and direct accordingly. Since we have quashed the assessment proceedings on this legal ground raised by the assessee in his CO on account of combined satisfaction note, therefore, the grounds raised by the Revenue challenging the order of the Ld. CIT(A) in deleting the addition become academic in nature and therefore, the same are not being adjudicated. Accordingly the appeal filed by the Revenue is dismissed and the CO filed by the assessee is allowed. In the result, the appeal filed by the Revenue is dismissed and the CO filed by the assessee is allowed.
