Brief of the case:
In this case court observed that satisfaction was not recorded by the AO before issuing notice u/s 153C which is a fact decided by ITAT. No paper or document was seized against the assessee in the search operation. No addition or observance was made by AO in connection to any material found during search. Hon’ble court held that no action u/s 153C was justified for the above reasons.
Facts of the case:
- Assessee is a partnership firm carrying on the business of Hi. Tech Heavy Steel Fabricators and manufacturer for last more than 25 years.
- A search was conducted against the partners of assessee firm under Section 132(1). A survey u/s 133A was conducted at the business premises of the assessee firm and no papers were impounded during the course of that survey.
- AO issued notice under section 153C in response to which assessee filed returns pertaining to AYs 2000-01 to 2005-06. The respondent also filed return for the Assessment Year 2006-07 under Section 139(1). Besides, a response was also filed to the notice under Section 142 (1).
- The AO passed orders u/s 153C/143(3) of the IT Act, made identical additions towards disallowances of purchase amounts and fabrication charges for all the assessment years and by making further addition towards excess stock in the Assessment Year 2006-07.
Contention of the revenue:
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