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2021 (12) TMI 203 - AT - Income TaxAssumption of jurisdiction u/s 153C - whether the satisfaction note recorded by the LD AO is sustainable in law or not? - when there is no satisfaction e- recorded in the case by LD AO of the searched persons, whether assessment u/s 153C in the case of other person can be upheld or not? - HELD THAT:- CIT(A) has extensively dealt with the satisfaction note dated 24.04.2012 recorded by the ld AO which does not have reference to any incriminating material found during the course of search. There is also no finding that such material pertaining to the assessee. Therefore, the issue is squarely covered by the decision of the Pepsico Food Products Ltd [2014 (8) TMI 425 - DELHI HIGH COURT] and Pepsico India holding pvt ltd. [2014 (8) TMI 898 - DELHI HIGH COURT] Further, based on the letter of ld AO dated 22.12.2014 referred to the para No. 4.8 of the order of the ld CIT(A), a finding is recorded that the ld AO of the searched persons has not recorded any satisfaction with respect to any of a material, which pertains to assessee company. On plain reading of the section it is apparent that there has to be a satisfaction in case of the persons searched by assessing officer that particular material or valuable articles found during the course of that search does not belong to the person who has been searched but that material is pertaining to the 3rd party. This is necessary to assume jurisdiction in the case of the third party. In present case there is no such satisfaction recorded by the learned assessing officer of the searched person. Further, there is no reference of any material pertaining to the assessee in the satisfaction note recorded by the ld AO of the assessee i.e. third person. Thus, the issue is squarely covered in favour of the assessee.
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