TMI Blog2019 (7) TMI 1447X X X X Extracts X X X X X X X X Extracts X X X X ..... sary that before the provisions of section 153 C can be invoked, the Assessing officer of the searched person must be satisfied that the seized material ( which included documents) does not belong to the person referred to in section 153 A, i.e., the searched person. In the satisfaction note, which is the subject matter of these writ petitions, there is nothing therein to indicate that the seized documents do not belong to the Jaipuria Group. This even apart from the fact that there is no disclaimer on the part of the Jaipuria Group insofar as these documents are concerned. Assessee relied on circular No. 24/2015 dated 31.12.2015, issued by the CBDT, in which, the Board following the decision of Hon'ble Supreme Court in case of M/s C ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 ₹ 11,65,31,847/-. It also appears that in the assessment order, an addition was made amounting to ₹ 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 ₹ 16,17,91,847/- whereas, the sale consideration shown in the registered sale deed was only to the tune of ₹ 4,52,60,000/-. Thus, the difference of ₹ 11,65,31,847/- wa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he 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 T he guidelines of the Hon'ble Supreme Court as referred in para 2 above, with regard to recording of satisfaction note may be brought to the notice of all for strict compliance. Iti s further clar ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... somehow 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 t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... available on record. We find that the assessing officer has issued notices under section 153 C of 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... are bad in law. The similar issue had come up before the HOn'bel High Court of Madhya Pradesh int he case of CIT Vs Mechmen (2015) 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 verificatio ..... X X X X Extracts X X X X X X X X Extracts X X X X
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