TMI Blog2016 (8) TMI 45X X X X Extracts X X X X X X X X Extracts X X X X ..... d by the Assessing Officer. Accordingly, in the facts and circumstances of the case, we set side this issue to the record of the CIT (Appeals) for deciding the same by giving a detailed factual finding as well as the validity of assessment under Section 153C of the Act to the extent of the enhancement of assessment made by the CIT (Appeals). Since the jurisdictional issue has been set aside to the record of the CIT (Appeals) for fresh adjudication, therefore the other issues raised by the assessee are kept open. - I.T.A. No.709/Bang/2013 - - - Dated:- 25-7-2016 - Shri Abraham P George, Accountant Member And Shri Vijay Pal Rao, Judicial Member Appellant By : Shri G.S. Prashanth, C.A. Respondent By : Shri G.R. Reddy, CIT - I (D.R) ORDER Per Shri Vijay Pal Rao, J.M. This appeal by the assessee is directed against the order dt.13.03.2013 of Commissioner of Income Tax (Appeals) for the Assessment Year 2006-07. 2. The assessee has raised the following grounds : 1. The order of the authorities below in so far as it is against the Appellant, is opposed to law. weight of evidence, natural justice, probabilities, facts and circumstances of the Appellant' ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... case. 13. The appellant craves leave to add, alter, delete or substitute any of the grounds urged above. 14. In view of the above and other grounds that may be urged at the time of the hearing of the appeal, the appellant prays that the appeal may be allowed in the interest of justice and equity. 3. The assessee is Association of Persons engaged in the business of real estate. A search was carried out under Section 132 of the Income Tax Act, 1961 (in short 'the Act') in the case of C R Lakshminarayana and Sri K.B. Lakshman group on 6.10.2009 and consequent to search proceedings of the assessee's case was centralised. During the course of search certain documents were seized. A notice under Section 153C of the Act was issued to the assessee. In response the assessee filed its return of income on 2.9.2011 declaring total income of ₹ 16,20,956 as it was declared in the original return filed on 3.11.2006. The assessee also filed a revised return in response to the notice under Section 153C of the Act on 23.9.2011 by declaring a total income of ₹ 53,40,927. 4. The Assessing Officer passed an order of assessment under Section 153C r.w.s. 143(3) d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... relied upon the judgment of Hon'ble Supreme Court in the case of CIT Vs. Calcutta Knitwears (2014) 362 ITR 673 (SC) as well as the decision of the Hon'ble Delhi High Court in the case of CIT Vs. RRJ Securities Ltd. (2016) 380 ITR 612 (Del). Hence the learned Authorised Representative has submitted that the assessment completed under Section 153C r.w.s. 143(3) of the Act is illegal for want of jurisdiction and the same may be set aside. 6. On the other hand, the learned Departmental Representative has submitted that the assessee has not disputed that the satisfaction was recorded by the Assessing Officer as reproduced by the CIT (Appeals) in the impugned order. Since the Assessing Officer having jurisdiction over the searched person as well as the assessee is same therefore no separate satisfaction is required once a satisfaction is recorded by the Assessing Officer. He has thus contended that in this case the mandatory condition of recording satisfaction has been complied with by the Assessing Officer before initiating the proceedings under Section 153C of the Act. 7. We have considered the rival submissions as well as the relevant material on record. There is no disp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the other assessing officer who has jurisdiction over such other person. The satisfaction note could be prepared at either of the following stages: (a) at the time of or along with the initiation of proceedings against the searched person under Section 158BC of the Act; (b) along with the assessment proceedings under Section 158BC of the Act; and (c) immediately after the assessment proceedings are completed under Section 158BC of the Act of the searched person. Thus it is clear that for initiating the proceedings under Section 158BD of the Act satisfaction note is sine qua and must be prepared by the Assessing Officer before he transmits the record to the other Assessing Officer who has jurisdiction over such person. A similar view has been taken by the Hon'ble Delhi High Court in the case of CIT Vs. RRJ Securities Ltd. (supra) while considering the requirement of recording of satisfaction before initiating the proceedings under Section 153C of the Act in paras 36 to 38 as under : 36. The decision in SSP Aviation (supra) cannot be understood to mean that the AO has the jurisdiction to make a reassement in every case, where seized assets or documents are handed over ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... shminaryana and K B Lakshman group of cases, action under Section 153C were initiated in the case of the appellant. Reasons for the same have duly been recorded by the Assessing Officer, who is also the Assessing Officer initiating 153A in respect of Sri K B Lakshman, the person in whose case search has been initiated. The reasons recorded are as under: ' Satisfaction note for initiating action u/s.153C. Action u/s.132 was conducted in the residential premises of Sri K B Lakshman on 6.10.2009 based on the Authorisation issued by the Addl. DIT (Inv)-II, Bangalore vide Warrant No. - dt - During the course of search in the case of Sri C R Lakshminarayana and K B Lakshman group the following books/documents were found and seized u/s.132. Exhibit I.D. Page Nos. A/KBL/03 131 to 138 A/KBL/04 1 to 5 A/KBL/05 5 to 8 On a scrutiny of the above documents seized it is seen that the above materials belongs to M/s. KBL Layout, I am satisfied that action under Section 153C has to be initiated in the case of M/s. KBL Layout for the A.Ys 2004-05 to 2009-10. Hence, issue notice u/s.153C. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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