Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2010 (4) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2010 (4) TMI 922 - AT - Income TaxValidity of Assessment u/s 153C - addition of unexplained cash balance for want of proof - as argued satisfaction as required u/s 153C was not recorded - absence of requisite satisfaction for invoking the provisions of section 153C - HELD THAT:- The notice obviously does not speak of any satisfaction at all. As already mentioned by us, the order sheet entries would not be sufficient to hold that the Assessing Officer was satisfied on any items of the nature mentioned in section 153C of the Act, to belong to the assessee. On the date of recording of the so-called satisfaction, viz, November 21, 2005, the assessee had already filed revised returns disclosing such deposits as its income and taxes due thereon stood paid. No doubt, the satisfaction need not be specifically stated in so many terms, but it should be discernible from the recordings made by the AO. We are therefore of the opinion that CIT(A) rightly held the satisfaction required under section 153C was never reached or recorded. We are persuaded to agree that once there is no proper assumption of jurisdiction, an assessment made pursuant to such proceedings would have to be annulled. Though we hold that assessment stands quashed, in line with the decision of Shelly Products [2003 (5) TMI 4 - SUPREME COURT] we have to add that the assessee would be entitled to a refund only of the amount of tax paid, in excess of the tax due by him, on the basis of the income disclosed in his return. Appeal of the Revenue is dismissed. Levy of penalty - As we have already upheld the order of the Commissioner of Income-tax (Appeals) and quashed the assessment made on the assessee under section 153C read with section 143(3) of the Act for the impugned assessment year. Therefore the substratum for the levy of penalty has disappeared. Decided in favour of assessee.
|