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2011 (9) TMI 804 - AT - Income TaxLegality of jurisdiction u/s 153C - assessee contended that notice issued u/s 153C r.w.s. 153A is invalid on ground that no satisfaction had been recorded in the case of the present assessee - Held that:- Once the Assessing Officer himself has accepted that the recording of reasons is not a pre-condition for action u/s 153C and has accepted that the points are noted for the sake of ready reference and appropriate action, obviously cannot be treated as reasons recorded. Supreme Court in case of Manish Maheshwari () has categorically held that the satisfaction is to be recorded. Hence, notice issued u/s 153C r.w.s. 153A is liable to be held as invalid - Decided against the Revenue. Additions made on account of inadequacy of drawings - Held that:- Once it is accepted that the assessee is staying with the joint family, obviously the drawings of all the family members would have to be considered and as it is noticed that the drawings of all family members put together are more than the estimate made by the Assessing Officer, we are of the view that the deletion of the same by CIT(A) is on a right footing. Addition on account of the difference between the Balance Sheet filed along with the return and the Balance Sheet found in the course of the search - return filed late in reponse to notice issued u/s 153A - Held that:- Return filed late by the assessee in response to the notice u/s 153C read with section 153A is an invalid return and the same cannot be rescued to be treated as a valid return, this comparison itself would fail. Accepting that the return filed can be considered as information, still as the investments shown in the Balance Sheet seized being higher, no addition on this count can be made because there is no Balance Sheet which is filed and which can be considered for making the addition. All the additions made on the basis of the comparison with such invalid return stand deleted - Decided against the Revenue.
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