9911796707
TMI Blog2016 (8) TMI 1360X X X X Extracts X X X X X X X X Extracts X X X X ..... In addition thereto, a separate set of additional grounds of appeal were filed wherein it was contended that the Ld. CIT(A) erred in upholding the order of the Assessing Officer by invoking the provisions of section 153C of the Act without recording the satisfaction of the Assessing Officer who has carried out the search and forwarded the file to the Assessing Officer who has issued notice under section 153C of the Act. In short, the plea of the assessee is that the proceedings under section 153C of the Act are bad in law in the light of decision of the jurisdictional High Court in the case of CIT vs. M/s. Shetty Pharmaceuticals and Biologicals Ltd., ITTA.No.662 of 2014 dated 26.11.2014. It was further submitted that since the issue goes to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ant issued in the status of HUF. Hence, to avoid legal complications, notice under section 153C is issued as certain documents seized from assessee's house relating to HUF indicating undisclosed income. The Assessing Officer has already elaborately discussed in the assessment order." 2.1. The order sheet merely mentions as under : "Search and seizure operation was carried out in the MVS Reddy Group. The assessee's case covered under section 153A/C of the I.T. Act. Notice under section 153A put up." 3. Learned Counsel for the assessee pointed out that the order sheets placed before the Bench do not indicate that the officers who are involved in search have not recorded any satisfaction that the assessee HUF had concealed any income and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ave been issued under section 153A of the Act. Once proceedings are initiated in the case of a person who was searched and if some incriminating material is found in respect of a person other than the person searched, the Assessing Officer should record his satisfaction that any money, bullion, jewellery or other valuable articles etc., belongs to such person, other than the person referred to in Section 153A, and thereafter the said books of account etc., should be handedover to the Assessing Officer having jurisdiction over such other person so as to enable the Assessing Officer concerned to proceed against such person. In the instant case, there is no evidence on record to show that the Assessing Officer who has conducted search, or who ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... te proceedings upon the assessee records his satisfaction; In the instant case, proper reasons were not recorded by both the Assessing Officers. At any rate nothing was brought on record by the Revenue to support its stand that appropriate reasons were recorded by the Assessing Officers concerned. 7. Under identical circumstances, the ITAT Hyderabad Bench in the case of Shettys Pharmaceuticals & Biologicals Ltd., vs. DCIT, Central Circle-2, Hyderabad (2014) 47 taxmann.com 85 (Hyd.) (Tribu.) quashed the proceedings for non-recording of reasons by observing in para-33 as under : "33. The above two judgments were delivered u/s. 158BD. We have carefully gone through the language used in section 153C and 158BD of the Act. The main difference ..... X X X X Extracts X X X X X X X X Extracts X X X X
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