TMI Blog2016 (11) TMI 1241X X X X Extracts X X X X X X X X Extracts X X X X ..... r The Revenue : Shri Anil Chaware ORDER PER SUSHMA CHOWLA, JM: This bunch of six appeals relating to different assessee against separate orders of CIT(A) relate to different years, which are as under:- Sr No ITA No. Appellant Respondent Assessment year Date of order of CIT(A) Section under which appeal filed 1 1996/PN/2012 Om Properties Developers, MZSK Associates (formerly Shah Khandelwal Jain Associates) Chartered Accountants, Level 3, Business Bay, Plot No.84, Wellesley Road, Near RTO, Pune 411001 PAN: AABFO6235E DCIT, Central Circle 1(1), Pune 2008-09 30.04.2012 143(3) r.w.s 153C 2 1125/PN/2012 M/s. Aswani Associates, MZSK Associates, (Formerly Shah Khandelwal Jain Associates) Chartered Accountants, Level 3, Business Bay, Plot No.84, Wellesley Road, Near RTO, Pune 411001 PAN: A AMFA4202C DCIT, Central Circle 1(1), Pune 2007-08 15.12. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oked and the assessment framed thereunder is tenable in law. 4. The learned Authorized Representative for the assessee pointed out that the issue raised in the present appeal is challenging the jurisdiction exercised under section 153C of the Act. He further pointed out that there were various limbs to exercise of jurisdiction under section 153C of the Act. First of all, no reasons were recorded for initiating the proceedings under section 153C of the Act. The second issue which has to be seen is whether any documents were seized and forwarded to the Assessing Officer. The third limb was whether the documents seized were incriminating and fourth limb was whether such documents relate to the year under appeal. He stressed that the satisfaction recorded by the Assessing Officer in-charge of the searched person is missing and even the documents found were not incriminating. Our attention was drawn to the copy of notice issued under section 153C of the Act, wherein there is no recording of satisfaction by the Assessing Officer. He further referred to the letter dated 19.05.2016 filed by the Assessing Officer, wherein the Assessing Officer himself has admitted that no satisfaction ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ellants before us. Though survey under section 133A of the Act was carried out in the group cases of the assessee on 13.08.2008 itself but the proceedings initiated against the assessee firm were under section 153C of the Act. The claim of assessee before us is that before initiating the aforesaid proceedings under section 153C of the Act, a satisfaction note is required to be recorded by the Assessing Officer who is in-charge of searched person, before parting with seized material relatable to the other persons and the Assessing Officer incharge of the other persons, then is to proceed with the proceedings. 7. Under the provisions of section 153C of the Act, it is provided notwithstanding anything contained in sections, 139, 147, 148, 149, 151 and 153 of the Act, where the Assessing Officer is satisfied that any money, bullion, jewellery or other valuable article or thing or books of account or documents seized or requisitioned belongs or belonged to a person other than the person referred to in section 153A of the Act, then such books of account or documents or assets seized or requisitioned, shall be handed over to the Assessing Officer having jurisdiction over such persons. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 31.12.2015 vis- -vis recording of satisfaction note under section 158BD / 153C of the Act. The Circular provides as under:- 2. The Hon'ble Supreme Court in the case of M/s Calcutta Knitwears in its detailed judgment in Civil Appeal No.3958 of 2014 dated 12.3.2014 (available in NJRS at 2014-LL-0312-51) has laid down that for the purpose of Section 158BD of the Act, recording of a satisfaction note is a prerequisite and the satisfaction note must be prepared by the AO before he transmits the record to the other AO who has jurisdiction over such other person u/s 158BD. The Hon'ble Court held that the satisfaction note could be prepared at any 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; or (b) in the course of the assessment proceedings under section 158BC of the Act; or (c) immediately after the assessment proceedings arc completed under section 158BC of the Act of the searched person. 3. Several High Courts have held that the provisions of section 153C of the Act are substantially similar/pari-materia to the provisions of section 158BD of the Act and the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Act should be withdrawn or not pressed, if it does not meet the guidelines laid down by the apex Court. 11. The Delhi Bench of Tribunal in Bhawna Bhalla Anr. Vs. ACIT Anr. (supra) has referred to the CBDT Circular and held that the recording of satisfaction should be strictly complied with where even if the Assessing Officer of searched person and other person was the same. 12. Now, coming to the facts of the present case before us, search and seizure action under section 132 of the Act and survey action under section 133A of the Act was carried out in Aswani group cases on 13.08.2008. Admittedly, no search and seizure operations under section 132 of the Act were carried out against the assessee. During the course of search, certain documents were found which as per search team related to the assessee before us and an appraisal report was prepared by the search party in this regard. The Assessing Officer in-charge of the searched person and the assessee were the same. Notice under section 153C of the Act was issued on 26.10.2010 and the copy of same is available on record. The Assessing Officer records that search and seizure was carried out on 13.08.2008 in the Aswa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r section 153C of the Act against the assessee i.e. before handing over the documents relating to the assessee and starting the proceedings under section 153C of the Act, the assessment proceedings completed against the assessee under section 153C of the Act are invalid, hence, the same are held so. Accordingly, the assessment order passed under section 143(3) r.w.s. 153C of the Act does not stand and the same is annulled. The grounds of appeal raised by the assessee are thus, allowed. 13. The facts and issue in ITA Nos.1125/PN/2012 and 1126/PN/2012 relating to assessment years 2007-08 and 2008-09 in the case of related party M/s. Aswani Associates are similar to the facts arising in ITA No.1996/PN/2012. The assessments in the case of M/s. Aswani Associates for both the assessment years were completed under section 143(3) r.w.s. 153C of the Act and in both the cases also, no satisfaction was recorded and the Assessing Officer has vide letter dated 19.05.2016 confirmed that no satisfaction note is available in the case records. Accordingly, following the same parity of reasoning as in ITA No.1996/PN/2012, the grounds of appeal in ITA Nos.1125/PN/2012 and 1126/PN/2012 are allowed ..... X X X X Extracts X X X X X X X X Extracts X X X X
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