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2022 (3) TMI 79 - AT - Income TaxAssessment u/s 153C - reasons for issuance of notice was that assessee had given unsecured loan to one party - mandation of recording satisfaction note - HELD THAT:- We find that CIT(A) after considering the submissions of the assessee, remand the report from the AO and assessee’s reply to the remand report has given a finding that the satisfaction note, the basis on which the proceedings u/s 153C against the assessee were initiated, was on the basis of the investment made by assessee in M/s. Golf Link Hospitality Pvt. Ltd. He has given a finding that AO had noted in the satisfaction note that assessee had invested ₹ 45,00,000/- each in A.Y. 2011-12 & 2012-13 but the factual position was that investment exist only in A.Y. 2011-12 and thus there was no satisfaction of the AO for other year than 2012-13 u/s 153C . Even for A.Y. 2011-12, the satisfaction recorded were not based on incriminating document found as a result of search, all the additions made by the AO were either of the items reflected in the Balance Sheet or Profit and Loss account of the assessee. He has further noted that no addition was made by AO on the basis of any incriminating material found and the addition made by AO did not co-relate with satisfaction noted by him. He thereafter relying on the decision of Sinhgad Technical Education Society [2017 (8) TMI 1298 - SUPREME COURT] held the notice issued u/s 153C of the Act to be void ab initio invalid and legal not sustainable and therefore annulled the assessment order. Grounds of Revenue are dismissed.
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