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2018 (12) TMI 983 - AT - Income TaxValidity of assessment u/s 158BC r.w.s. 158D - valid satisfaction for the purpose of assumption of jurisdiction u/s 158BD - whether satisfaction has been recorded on the basis of incriminating seized documents scanned in the assessment order, by the AO who had jurisdiction over the case? - search u/s 132 - Held that:- CIT(A) has given the categorical finding that the addition is not sustainable due to the detailed reasons given by the CIT(A) stating hat the name of the assessee viz., Shri Virender Bhatia does not appear on any of the pages mentioned in the Annexures as described in the satisfaction note. These annexures have also been examined by your goodself Valadity of notice issued u/s 158BD - no order dropping the proceedings initiated u/s 158BD of the Act dated 14/7/2005 was ever been served on the assessee - Held that:- Once it is not disputed that no order dropping proceedings had been communicated to the assessee, it ought to have been held that notice issued u/s 158BD of the Act dated 22/7/2007 was without jurisdiction held by Hon’ble Apex Court inc case of Trustees OF H. EH THE NIZAM'S SUPPLEMENTAL FAMILY TRUST VERSUS COMMISSIONER OF INCOME-TAX [2000 (2) TMI 4 - SUPREME COURT] The satisfaction recorded by the Assessing Officer as per Revenue is incorporated in the order sheet and not in the notice. Thus, it is not a valid satisfaction, as satisfaction u/s 158BD of the Act has to be recorded by the Assessing Officer of the searched person and not by the Assessing Officer of the other person i.e. assessee. Therefore, this satisfaction which was recorded in the order sheet and also not communicated to the assessee, is not a valid satisfaction, this preposition of the Ld. AR sustains. The contention of the Ld. DR is that the Assessing Officer is same for all the mentioned assessees do not permit/allow the Assessing Officer not to record satisfaction for each of the assessee separately. It is a mandate as per the provisions of the Act and cannot be overlooked. Therefore, the Assessing Officer does not have valid jurisdiction to frame the assessment. Thus, the cross objection of the assessee is allowed.
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