Case Law Details
Brief of the Case
Delhi High Court held In the case of Principle CIT vs. Nikki Drugs & Chemicals Pvt. Ltd. that the Allahabad High Court in the case of Commissioner of Income Tax v. Gopi Apartments: (2014) 365 ITR 411 (All.) has held that even in cases where the assessing officer of the person searched and the assessee who is sought to be assessed under Section 153C is the same, the assessing officer is required to record his satisfaction that the assets/ documents seized belong to a person other than the searched person. Thus, it is necessary for the assessing officer of the searched person to record his satisfaction that the assets/documents seized belong to the assessee other than the searched person is no longer res integra. It is settled that recording of such satisfaction is mandatory pre condition for commencing any proceedings under Section 153C.
Facts of the Case
The above proceedings emanate from the search and seizure operations under Section 132, which commenced on 14th October, 2008 in respect of “SVP Group of companies”. The Assessee, in the present case, is one of the 12 companies that was not subjected to search but was assessed under Section 153C. The assessment order records that a notice under Section 153C was issued by the ACIT on 14th May, 2010, but this is disputed by the Assessee. Thereafter, on 15th September, 2010, notices under Section 153A were issued by the ACIT, Meerut for the AYs 2003-04, 2004-05, 2005-06 and 2008-09. Further, on the said date, notice under Section 142(1) was also issued for AY 2009-10. In response to the aforesaid notices, the Assessee filed its returns of income for the respective five AYs in question.
Thereafter, various notices were issued by the AO. According to the AO, the said notices were not fully complied with. On 31st December, 2010, the AO passed assessment orders in respect of each of the
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