TMI Blog2019 (9) TMI 405X X X X Extracts X X X X X X X X Extracts X X X X ..... fficer of the searched person. Since the ld.CIT(A) has not decided the issue on merit, therefore, we deem it proper to restore the issue to the file of the CIT(A) with a direction to decide the issue on merit - Grounds raised by the Revenue are accordingly allowed for statistical purposes. - ITA No.3263/Del/2015 - - - Dated:- 15-7-2019 - SHRI R.K. PANDA, ACCOUNTANT MEMBER AND SHRI SUDHANSHU SRIVASTAVA, JUDICIAL MEMBER Assessee by: Shri Rakesh Kumar Khiwani, CA Revenue by: Mrs. Naina Soin Kapil, Sr. DR ORDER PER R.K. PANDA, AM: This appeal filed by the Revenue is directed against the order dated 24th March, 2015 of the CIT(A)-24, New Delh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e, the ld.CIT(A) quashed the proceedings u/s 153C of the IT Act on the ground that the satisfaction note in respect of section 153C proceedings was not recorded by the Assessing Officer of the searched person. According to him, the jurisdiction u/s 153C was assumed by the Assessing Officer without fulfilling the requirement of section 153C. For the above proposition, he relied on the decision of the Hon'ble Delhi High Court in the case of M/s Pepsi Food (P) Ltd. vs. ACIT, reported in 52 taxmann.com 220 (Del), DSL Properties Pvt. Ltd. vs. DCIT, reported in 33 taxmann.com 420 (Del-Trib.) and the decision in the case of Pepsico India Holdings Pvt. Ltd. vs. ACIT, reported in 270 CTR 467 (Del). 4. Aggrieved with such orde ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ble High Court in the case of Ganpati Fincap Services Pvt. Ltd. vs. CIT, 2017-TIOL-1033-HC-DEL-IT, where it has been held as under:- ....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 die non for triggering the proceedings against the other person under Section 153C of the Act. Further, there do 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. That satisfaction note is qua ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... recorded u/s 153C in respect of the assessee, being the third party could not be said to be invalid on a hyper technical ground of interpretation of the expression belonging to too literally. She accordingly submitted that the order of the CIT(A) being not in accordance with law, should be set aside. However, since he has not decided the appeal on merit, she has no objection if the matter is restored to his file for deciding the issue on merit. 7. The ld. counsel for the assessee, on the other hand, strongly supported the order of the CIT(A). He submitted that during the course of search, no incriminating material was found. The assessment also is not based on any incriminating material found during the course of search b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on of proceedings u/s 153C and, therefore, the proceedings u/s 153C were validly initiated. 9. We find merit in the above argument of the ld. DR. We find the Hon'ble Delhi High Court in the case of PCIT vs. Sheetal International Pvt. Ltd., vide ITA Nos. 375 to 379/2017, order dated 10th July, 2017, has decided an identical issue in favour of the Revenue by observing as under:- 5. From the impugned order dated 28th October 2016, it is seen that the short ground on which it was held by the ITAT that the proceeding was not validly initiated under Section 153C of the Act since there was no satisfaction note recorded by the Assessing Officer ( AO ) of the searched person 6. In the present ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... accordingly, answered in the negative i.e., in favour of the Revenue and against the Assessee. The impugned order of the ITAT is hereby set aside. 9. Learned counsel for the Assessee, however, urges that this is a case where there were no incriminating materials available to proceed against the Assessee under Section 153C of the Act. 10. The above issue has not been examined on merits by the ITAT. In the circumstances, the Court considers it appropriate to direct that, for the above purpose, the aforementioned appeals shall stand restored to the file of the ITAT and the ITAT will hear them on merits. 11. The appeals aforementioned will now be listed before the ITAT on 4th September, 201 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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