Case Law Details
Palla Simhachalam (HUF) Vs ACIT (ITAT Visakhapatnam)
AO of the searched person and the other person is one and the same, then also AO is required to record the satisfaction, as held by the various In the instant case, no such material has been brought before us by the ld. DR. In view of the above discussions, since the satisfaction was not recorded by the Assessing Officer before issue of notice U/s. 153C of the Act, we are of the considered view that the order passed by the Ld. CIT(A) U/s. 153C of the Act deserves to be set aside for all the impugned assessment years. It is ordered accordingly.
FULL TEXT OF THE ORDER OF ITAT VISAKHAPATNAM
These appeals filed by the assessee are directed against the order of the Ld. Commissioner of Income Tax (Appeals)-9, Hyderabad [the Ld. CIT(A)] in ITA Nos. 10482, 10483, 10484 & 10490/CIT(A)-9/Hyd/2018-19, dated 23rd July, 2019 arising out of the order passed U/s. 153C of the Income Tax Act, 1961 [the Act].
2. Brief facts of the case are that a search and seizure operations u/s. 132 of the Act was conducted in the residential premises of Palla Sankara Rao on 14/03/2014 and a prohibitory order was issued in respect of one The prohibitory order was lifted on 11/4/2014 and the search was completed on 11/4/2014. On the basis of the material from almirah, a notice u/s. 153C was issued on 05/01/2015 by the ACIT, Circle-5(1), Visakhapatnam to the assessee. The assessee filed its return of income u/s. 153C admitting a total income of Rs.8,34,520/-. Subsequently, the case was selected for scrutiny and statutory notices u/s. 143(2) and 142(1) were issued on the assessee. During the course of assessment proceedings the assessee’s representative submitted that the transactions in the name of Sri Palla Sankara Rao unearthed during the course of search were admitted in the hands of Palla Simhachalam (HUF) and accordingly the AO based on the information completed the assessment determining the total income at Rs. 12,34,450/- after obtaining prior approval from the JCIT, Range-5, Visakhapatnam u/s. 153D of the Act. Aggrieved by the order of the Ld. AO, assessee filed an appeal before the Ld. CIT (A). The Ld. CIT(A), while disposing off the appeal by way of consolidated order, dismissed the appeals and uphold the order of the Ld. AO. Aggrieved by the order of the Ld. CIT(A), the assessee is in appeal before us.
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