Case Law Details
ACIT Vs Gulshan Kumar Sethi (ITAT Delhi)
Conclusion: AO of the searched person had not rebutted the presumption that the seized documents belonged to M/s. C Ltd but belonged to other person, i.e, assessee, therefore, issue of notice under section 153C on assessee was illegal.
Held: Search was conducted at the premises of M/s.C Ltd. and certain documents relating to assessee were seized. Based on the above documents, AO of assessee was requested to issue notice under section 153C to assessee. Accordingly, AO initiated proceedings under section 153C r.w.s. 153A and made addition. Assessee challenged this on the ground of non-recording of satisfaction by AO of searched person. It was held before issue of a notice under section 153C, the first step was that AO of the searched person must arrive at satisfaction that a document seized from him did not belong to him but to some other person. It was only in the second step that the document was to be handed over to AO of the person to whom the seized document ‘belongs’. Therefore, it was for AO of the searched person to rebut that presumption and came to a conclusion or ‘satisfaction’ that the document in fact belonged to somebody else. Thus, in the case of assessee, AO of the searched person had not rebutted the presumption that the seized documents belonged to M/s. C Ltd. Therefore, the first step itself had not been fulfilled and thus, the issue of notice under section 153C on the assessee was illegal.
FULL TEXT OF THE ITAT JUDGEMENT
The Revenue has filed this Appeal against the impugned Order dated 12.06.2015 of the Ld. CIT(A)-19, New Delhi relevant to assessment year 2012-13.
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