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2013 (1) TMI 259 - AT - Income TaxValidity of the orders passed under section 153C - Permanent Establishment (PE) in India through which assessee carries out its sales in India - AO held that 90% of the business income of assessee is attributable to its Indian PE - interest u/s. 234A and 234B - Held that:- There is no satisfaction recorded by AO before initiating proceedings under section 153C. Inspite of giving sufficiently adequate time to the Revenue for production of the necessary records and considering the fact that AO refused to allow inspection to assessee as recorded by the bench on 20.04.2011 no option but to conclude that no satisfaction was recorded by AO before issuance of notice under section 153C. The Revenue has not been able to show any satisfaction recorded either in the case of searched person or in the case of assessee and consequently in view of the principles laid down by the Hon'ble Supreme Court in the case of Manish Maheshwari vs. ACIT [2007 (2) TMI 148 - SUPREME COURT OF INDIA] a notice issued under section 153C r.w.s. 153A is liable to be held as invalid. Thus, the consequential assessments passed under section 153C r.w.s. 144C are annulled on account of the invalidity of the notices under section 153C. Assessee’s additional grounds are accordingly allowed in all the impugned assessment years. Since assessee’s additional ground is allowed on the preliminary issue of jurisdiction, there is no need for adjudicating the issues on merit in any of the assessment years. Accordingly, the other grounds raised are considered academic and hence, not adjudicated - in favour of assessee.
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