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2018 (1) TMI 1076 - ITAT DELHIValidity of proceedings u/s 153C - unexplained property purchased - eligibility of satisfaction note - Held that:- When the property was purchased by the assessee through agreement to sale dated 05.05.2006 has already been disclosed in the regular books of account, therefore, the same could not be treated as undisclosed income of the assessee or incriminating material in nature against the assessee. AO in the assessment order did not question the aforesaid seized document i.e agreement to sale for the purpose of making any addition against the assessee. The reasons assigned by the AO in the satisfaction note were silent about any incriminating information or unaccounted or undisclosed hidden, income, seized by the Revenue from the assessee. The reasons recorded by the AO in the satisfaction note are factually incorrect or without sustenance because the property in question purchased on 05.05.2006 was already disclosed in the regular books of accounts for AY 2007-08. Therefore, there is no question of AO being satisfied with conditions of section 153C of the Act so as to initiate proceedings u/s 153C of the Act against the assessee. Reasons assigned by the AO in the satisfaction note were silent about any incriminating information or unaccounted or undisclosed hidden, income, seized by the Revenue from the assessee - Decided in favour of assessee
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