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2019 (1) TMI 695 - AT - Income TaxValidity of assessment made u/s 153C - non recording of satisfaction by the AO of the searched person to transfer the incriminating material and to take up the assessment of such other person, i.e. the assessee - reasons for issue of notice u/s 153C not signed - Held that:- The satisfaction not only should be recorded but also should be written in detail with valid reasons and it should not be vague. In the instant case, there is no dispute that the department could not establish that the AO of the searched person has recorded satisfaction before issue of notice u/s 153C of the Act. Therefore, following ASSTT. COMMISSIONER OF INCOME TAX & ANOTHER VERSUS PEPSI FOODS PVT. LTD. [2017 (12) TMI 588 - SUPREME COURT] we hold that the notice issued u/s 153C is unsustainable. From the perusal of the order sheet both for the A. Y. 2007-08 and 2008-09, it is evident that though the reasons for issue of notice u/s 153C was typed on plain paper, it was not signed by the officer who has recorded the satisfaction and it was also undated. Similarly, the direction for issue of notice u/s 153C was also remained unsigned and undated. The order sheet is a manually maintained record and not a digital document which does not require signature. An order or endorsement required to be dated and duly signed by the officer who is recording the reasons being satisfied that the case is fit case for taking action u/s 153C. An order, without having signature of the person, who recorded the satisfaction or issued the direction for taking action loses its relevance and to be treated as invalid. An order without signature is not an order for execution or for implementation. In the instant case, there is no dispute that the AO of the searched person has not recorded the reasons and order sheet of the AO of the assessee though reasons are typed, it remained unsigned. The direction for issue of notice u/s 153C was also unsigned. We have already decided that unsigned order sheet looses its relevance and it would be construed as non recording of reasons. The reasons typed also are very vague without any valid reason. Therefore, notice issued u/s 153C held to be invalid. - Decided in favour of assessee.
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