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2021 (7) TMI 262 - HC - Income TaxAssessment u/s 153C - satisfaction on the basis of the borrowed information - whether the books of accounts or documents or assets seized or requisitioned by the other AO in the proceedings under section 153A? - HELD THAT:- The respondent had initiated the proceedings under section 142(1) read with section 153C of the said Act by recording the satisfaction that the documents found and seized from the premises of the accommodation entry provider group of Ahmedabad, pertained to the petitioner - assessee and had a bearing on the determination of the total income of the petitioner for the A.Y. 2012-13. As stated earlier, the petitioner filed the objections against the said satisfaction recorded by the respondent and the said objections have been duly considered by the respondent. Under the circumstances, it could not be said that the respondent had recorded the satisfaction on the basis of the borrowed information. Impugned notice u/s 153C was issued on the basis of incorrect facts - Such satisfaction would be in the realm of subjective satisfaction of the concerned Assessing Officer. The sufficiency or correctness of the documents or material handed over by the other Assessing Officer to him also could not be gone into by the Courts at this stage. In the case of Raymond Woolen Mills Ltd. [1997 (12) TMI 12 - SUPREME COURT] it has been held that in determining whether the commencement of reassessment proceeding is valid, the Court has only to see whether there is prima facie some material on the basis of which the department has opened the case, and that the sufficiency or correctness of the material could not be considered at this stage. It is true that the supreme Court has made the said observations while considering the validity of the reasons recorded by the Assessing Officer for reopening of the assessment of the assessee under Section 147, whereas the present case arises out of the proceedings initiated and the satisfaction recorded by the Assessing Officer for initiating the proceedings under section 153C of the said Act, nonetheless such reliance of the decision of Supreme Court by the respondent could not be said to be out of place when the matter was concerning about the reopening of the assessment of the petitioner - assessee.
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