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2018 (12) TMI 1680 - AT - Income TaxAssessment u/s 153A - whether no satisfaction recorded by the learned assessing officer that the impounded documents belong to the various assesses? - Whether AO has correctly assumed jurisdiction u/s 153 C of the act by holding that documents found during the course of search on Shela Foams private Limited on 28/11/2011 'belongs‘ to the assessee? - HELD THAT:- As decided in INDEX SECURITIES PRIVATE LIMITED, VIDYA SHANKAR INVESTMENT PRIVATE LIMITED [2017 (9) TMI 585 - DELHI HIGH COURT] unless the document belongs to the assessee is shown by the learned AO in the satisfaction note itself with a reason and the basis. Ganpati Fincap Private limited [2017 (5) TMI 1425 - DELHI HIGH COURT] has held that Where proceedings are proposed to be initiated under Section 153C of the Act against the 'other person', it has to be preceded by a satisfaction note by the AO of the searched person. He will record in this satisfaction note that the seized document belongs to the other person. Depending on the nature and contents of the document he may be required to give some reasons for such conclusion. Therefore, it is apparent that if the satisfaction note, does not have any reasons for such conclusion, it is not in accordance with the law. For invoking jurisdiction under section 153C of the income tax act. Such is the case before us, where there is no reason recorded by the learned assessing officer stating that why these documents belong to the assessee and not to the person from whom it is found. However before parting we would also like to state that it cannot be a rule in its absoluteness that one document cannot be held to be belonging to more than one person. The striking example of the same is a joint bank account pass book of several persons together may be belonging to all those persons. Therefore, respectfully following the above judicial precedents of the honourable Delhi High Court, we do not find any reason to interfere in the order of the learned CIT – A, wherein it has been held relying upon the decision of the honourable Delhi High Court in case of Pepsi foods private limited [2014 (8) TMI 425 - DELHI HIGH COURT] that there is no satisfaction recorded by the learned assessing officer that the impounded documents belong to the various assesses and therefore the jurisdiction assumed by the learned assessing officer u/s 153C of the income tax act is invalid. - Decided against revenue.
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