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2021 (2) TMI 373 - HC - Income TaxValidity of notice issued u/s 153C - recording of satisfaction note - whether the impugned notice under Section 153C of the Act should be quashed? - proper or satisfactory explanation for gold found in search or not - whether the materials collected at the time of the search at the Rajkot Airport falls within the ambit of the expression “belongs to” or “pertains to” or “relates to”? - HELD THAT:- An exhaustive reading of the satisfaction note referred to above would indicate that the Assessing Officer was satisfied and it is specifically mentioned therein that the gold belongs to the writ-applicant and was not sent by Chhunnumal for the purpose of job work and the documents so seized pertains to the writ-applicant / other persons, therefore, it cannot be said that the mandatory requirement of Section 153C of the Act in the facts and circumstances of the case have not been complied with. The satisfaction note referred to above reveals that initially i.e. 27.10.2017, it was a case of survey, which was converted to search. In the instant case, therefore, it is case of the department that Jewellery or other valuable article or things seized 'belongs' to the petitioner and also “document” 'pertains' to and that any information contained therein 'relates' to the petitioner. The ingredients of Section 153(1)(a) and (b) both are complied with. In the satisfaction note, it has been recorded that the version put forth by the searched person that the Jewellery being given to the writ-applicant for job work was found not correct. Further, there was complete failure in producing the Forms 402 and 403 respectively of the GST which is a statutory requirement for the interstate transafer of goods for job work or sales. We are convinced that we should not interfere at the stage of showcause notice under Section 153C of the Act, 1961. Ultimately, if the assessment order goes against the writ-applicant (assessee), he/it shall avail and exhaust the remedies available to him/it under the Act, 1961 - writ-applications fail and are hereby rejected.
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