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TMI Blog2019 (7) TMI 1447X X X X Extracts X X X X X X X X Extracts X X X X ..... of law : "(A) Whether, on the facts and in the circumstances of the case and in law, the Income Tax Appellate Tribunal is right in holding the assessment illegal and void-abinitio ?" 3. It appears from the materials on record, that the assessment was finalised under Section 143(3) r.w.s 153C of the I.T Act on 30.3.2014 consequent to the search action under Section 132 of the I.T Act determining the total income at Rs. 11,65,31,847/-. It also appears that in the assessment order, an addition was made amounting to Rs. 11,65,91,847/-, on the basis of the document being 'saudachithi'. The said document was recovered from the bank locker of one Shri Kirit M. Shah and was seized. The sale price reflected is Rs. 16,17,91,847/- whereas ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hed person has not recorded the satisfaction in the assessment of the assessee. The assessee has raised this issue before the learned CIT(A) but learned CIT(A) has taken adverse view by holding that the AO had jurisdiction over under section 153 C of the Act as the satakhat belonged t he assessee. Hence, the AO was fully empowered to initiate proceedings under section 153 C of he Act. The learned counsel for the assessee, referred the CBDT circular No. 24/2015 dated 31st December 2015 which is regarding recording of satisfaction nto under section 158BD/153C of the Act wherein in para 4 it was mentioned as "The guidelines of the Hon'ble Supreme Court as referred in para 2 above, with regard to recording of satisfaction note may be brough ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ehow got misplaced hence, not ready available with the AO i.e Income Tax officer, ward-1(3)(7) Surat also filed an affidavit dated 17.8.2018 to this effect that from transfer memo of records, no satisfaction note was received and same is not available on assessment record. The assessee is also agitating that even in its own case no satisfaction was recorded as regard to its belongingness to certain incriminating documents seized from the premises of Shir Kiritbhai M. Shah. The learned counsel for the assessee further relied int he case of Pepsi co India Holding Pvt. Ltd. V. ACIT (2015) 370 ITR 295 (Delhi) (2014) 50 taxmann. com 199 (Delhi) wherein it was observed as follows: "In the instant case, it is nobody's case that Jaipuria Group ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Act based on search under section 132(1) which was carried out in the case of Shri Kirit M. Shah. The Assessing Officer issued notices under section 153 C and initiated the assessments proceeding for the years under consideration. The provisions of section 153C can be invoked only after recording a satisfaction in the case of persons searched qua the assets or books or documents seized during the course of search belong to some other person. In the instant case,t he Assessing officer of other concerned assessee has not recorded any satisfaction qua the belongingness of the seized documents with the assessee. Similarly, as admtited by the AO vide letter dated 20.8.2018 that there was no satisfaction note is available in the case of the a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 15) 60 taxmann.com 484 (MP), wherein the HOn'ble High court discussing the various judgments has held that the AO is obliged to record satisfaction (in case of the searched person) that the assets or documents do not belong to the searched person and these in fact belong to some other perons other than the searched person. This is sine quo non despite the fact that the AO of searched and nonsearched person is same. Thereafter, he has to handover the material to the AO of non searched person having jurisdiction over him (may be the same AO). After receipt of the material and due verification, the AO of non-searched person has to issue notice under section 153 C of the Act and to proceed in the matter. Thus, we are of the view that the As ..... X X X X Extracts X X X X X X X X Extracts X X X X
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