Valid satisfaction note mandatory for initiation of search assessment on ‘other person’: ITAT Mumbai

Dilip B Patel Vs DCIT (ITAT Mumbai)

ITAT Mumbai held that for initiation of search assessment on the ‘other person’ recording of valid satisfaction note as required under section 153C of the Income Tax Act is mandatory. In absence of the same, subsequent framing of assessment order u/s 153C/143(3) of the Act is null in the eyes of law.

Facts-

Vide the present appeal, the appellant contested that there was search u/s 132 of the Act in the case of Shri Vinod Faria & Shri Milan Dalal on 30.05.2008; and based on allegation of finding certain incriminating materials against the assessee from the premise of the searched persons, the impugned proceedings u/s 153C of the Act has been initiated against the assessee by issue of notice u/s 153C of the Act on 03.12.2009. According to the assessee, AO could not have done without first forming requisite satisfaction as required u/s 153C of the Act. According to him, there is no valid satisfaction u/s 153C of the Act.

Conclusion-

Please become a Premium member. If you are already a Premium member, login here to access the full content.