TMI Blog2017 (5) TMI 1426X X X X Extracts X X X X X X X X Extracts X X X X ..... occasion for the ITAT to examine the other grounds of challenge to the assumption of jurisdiction under Section 153 C of the Act. Consequently, the impugned order dated 13th March 2015 of the ITAT is hereby set side. The Court restores to the file of the ITAT for a further hearing all the appeals in which the impugned order was passed for consideration of the further grounds including the question whether the assumption of jurisdiction by the AO under Section 153C qua the Assessee was justified on the ground that the documents seized and stated to belong to the Assessee were not incriminating. - ITA 613 To 615/2016, ITA 801/2016, ITA 805/2016, ITA 809/2016, ITA 814/2016, ITA 840/2016, ITA 848/2016, & ITA 849/2016 - - - Dated:- 25-5-2017 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... -06 to 2008-09. Of the 10 appeals, 6 were by the Assessee and 4 by the Revenue. The Revenue s appeals were for the AYs 2005-06 to 2008-09. 3. By the impugned order, the ITAT has partly allowed all the appeals filed by the Assessee and dismissed the cross appeals of the Revenue. 4. Admit. 5. The following question of law is framed for consideration: Whether the ITAT was correct in holding that in the absence of any satisfaction of the Assessing Officer (AO) of the searched person, the assessment framed by invoking the provisions of Section 153C cannot be sustained? 6. In the present case, the search took place in the cases of Shri B.K. Dhingra, Smt. Poonam Dhingra and Madhusudan Buildcon Pvt. Ltd., associates of Thapar G ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... case was subsequently transferred to Central Circle-21 by an order dated 19th October, 2010. In response to the notice under Section 153C, the Assessee filed returns for the aforementioned AYs. 8. By separate assessment orders dated 31st December 2010, for each of the AYs 2003-04 to 2008-09 the AO finalised the assessment under Section 143(3) read with Section 153C of the Act making additions to the returned income in each of the AYs. 9. The appeals by the Assessee was dismissed by the CIT(A) by separate orders dated 5th September, 2014 sustaining most of the additions and disallowances. The objection raised by the Assessee to the assumption of jurisdiction under Section 153C of the Act was negatived by the CIT(A). 10. It is the ca ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... p Ltd. (order dated 16th November, 2016 in ITA No. 82/2016) and in Principal Commissioner of Income Tax v. Super Malls Ltd. (order dated 13th January, 2017 in ITA No. 450/2016). 13. Mr. Vikas Jain, learned counsel for the Respondent Assessee, on the other hand, sought to place reliance on the decisions of this Court in ARN Infrastructure India Ltd. v. ACIT (order dated 24th April, 2017 in W.P. (C) No. 2768/2016), CIT-7 v. RRJ Securities Limited [2015] 62 taxmann.com 391 (Del), PCIT-(Central-2) v. IECS Solutions Private Limited (order dated 19th October, 2015 in ITA No. 806/2015) and Principal Commissioner of Income Tax v. Aakash Arogya Mandir Pvt. Ltd. (order dated 28th July, 2015 in ITA No. 509/2015). 14. Today by a separat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the AO of the other person, to make a noting to that effect in the file of the searched person will not vitiate the proceedings under Section 153 C against the other person. (iv) Where the AO of the searched person and the other person is the same, such a satisfaction note qua the other person has to be recorded by the AO of the searched person prior to the initiation of the proceedings against the other person. This is a sine qua non for triggering the proceedings against the other person under Section 153 C of the Act. (v) There does not have to be two separate satisfaction notes prepared by the AO of the searched person even where he is also the AO of the other person. In such event, the AO need make only one satisfaction note ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Court held likewise. The Satisfaction Note in the present case, therefore, satisfies the requirement of the law. Consequently, the question framed is answered in the negative i.e., in favour of the Revenue and against the Assessee. 16. The learned counsel for the Petitioner then urged that the documents referred to in the Satisfaction Note were not incriminating and, therefore, on that ground also, the assumption of jurisdiction under Section 153C by the AO was erroneous. 17. The Court finds that there is no discussion in the impugned order of the ITAT on whether the documents referred to in the Satisfaction Note were, in fact, incriminating. The ITAT invalidated the proceedings under Section 153 C of the Act only on the ground of the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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