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2016 (1) TMI 1284 - AT - Income TaxInitiation of proceedings u/s 153C - absence of satisfaction note - Held that:- Undisputedly and admittedly, the present case is related to A.Y 2010-11 and from the satisfaction note, Annexure D, it is amply clear that the financial transactions recorded in page 36 to 56 and page 13 are tax audit reports, financial statements and trial balances pertaining to A.Y 2011-12. This facts also gets support from the written submission of the ld. DR dated 21.10.2015. Hence we are inclined to hold that there was no document relevant to A.Y 2010-11 before the AO of the searched person i.e. present assessee neither at the time of recording satisfaction u/s 153C of the Act on 29.11.2013 nor at the time f passing the impugned reasoned order u/s 143(3) r.w.s 153C of the Act. The ld. CIT-DR could not assist us as to whether any satisfaction note was recorded before handing over the impugned documents to the AO of the searched person i.e. the present assessee. Thus, in the absence of any document or any other contention on record before us, it is safely presumed that the AO of the searched person i.e. Minda Group did not record any satisfaction before handing over the impugned documents to the AO of the present assessee. Therefore, in our considered opinion, in the absence of such satisfaction note by the AO of the searched person, the AO of the searched person miserably failed to confer any lawful and valid jurisdiction on the AO of the present assessee to proceed with the initiation of proceedings and issuance of notice u/s 153C of the Act. Hence, we set aside the initiation of proceedings and issuance of notice u/s 153C of the Act and also hold that the impugned assessment order passed in pursuance thereto is void ab initio. Since we have held that the impugned assessment proceedings and assessment order u/s 153C of the Act as void ab initio, the other grounds of the assessee appellant on merits are of no consequence in view of lack of jurisdiction of the AO to proceed with the assessments u/s 153C of the Act. In view of our decision on the legal issue, as noted above, there is no need to espouse the other grounds taken by the assessee agitating other legal issues on merits and the same are dismissed as having become infructuous in all the four appeals. - Decided in favour of assessee.
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