Case Law Details
Macro Properties Pvt Ltd Vs DCIT (ITAT Jaipur)
ITAT Jaipur held that in absence of a valid satisfaction note the notice issued under Section 153C of the Income Tax Act 1961 is bad in law. Resultantly the assessment order passed u/s 143(3) r.w.s. 153C of the Act is void ab initio and liable to be quashed.
Facts- A search and seizure action and survey action was carried out by the Income Tax Department on the members of Krian Fine Jewellers Group on which the Assessee is one of the members.
It was noticed that books of accounts or documents found and seized during the search belonged to a person other than the person in the case of whom the search u/s 132 of the Act was carried out, notice (s) under section (s) 153C of the Act was issued and served upon the assessee, requiring him to file a true ad correct return of income as prescribed under Rule 12 of the Income Tax Rules, 1962 within 15 days of the service of the said notice.
An assessment order confirming various additions in the income of the assessee was made by AO by passing an assessment order u/s 153C of the Act. CIT(A) confirmed the action of AO. Being aggrieved, the present appeal is filed mainly alleging that AO has passed the order without recording the satisfaction as required u/s. 153C of the Act as it did not transpire from the order of the assessment as there is no discussion to recording of the satisfaction for taking up the case of the assessee u/s. 1 53C of the Act.
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