Prashant Premchand Bafana Vs ACIT (ITAT Pune)
The assessee filed two appeals for AYs 2017-18 and 2018-19 against separate orders of CIT(A), Pune-11 dated 12.10.2022 concerning proceedings under Sections 153C/153A read with Section 143(3) of the Income Tax Act, 1961.
The appeals were heard on 05.04.2023. The Judicial Member and Accountant Member differed in their views, resulting in a reference to the Third Member nominated by the Tribunal President. The Third Member, by order dated 28.02.2025, concurred with the Judicial Member.
The dispute concerned whether the Assessing Officer had validly recorded the requisite satisfactions under Section 153C(1) for initiating proceedings against the assessee, who was a person other than the searched person. The Assessing Officer of both the searched person, Shri Sachin Nahar, and the assessee was the same.
The Third Member noted that the satisfaction recorded in the case of the searched person on 05.03.2021 stated that Bundles 1 to 11 containing notebooks and notepads related to Shri Sachin Nahar’s cash money-lending business. However, the satisfaction recorded in the assessee’s case on 22.03.2021 stated that the documents belonged to Shri Prashant Premchand Bafna and would have a bearing on his total income.
The Tribunal found these satisfactions contradictory. The satisfaction note of the searched person did not state that the seized books or documents pertained to or that information contained therein related to the assessee. The documents were described as belonging to Shri Sachin Nahar, and the assessment order itself did not establish that documents belonging to the assessee had been found.
