9911796707
TMI Blog2021 (10) TMI 401X X X X Extracts X X X X X X X X Extracts X X X X ..... eads as under. "7.2 I have carefully considered the submissions made by the appellant as well as the observations of the AO in the impugned order. The additional grounds being legal in nature are admitted and taken copy of the order sheet recorded by the AO has also been called for, and it is seen that the reasons recorded in the case for issuing notice u/s. 153C are as under: ".........Search & Seizure operations were conducted in the MBS Jewellers Pvt. Ltd., group of cases on 11.03.2010. During the course of search, books of accounts, documents & other loose sheets were found and seized. As per the seized documents, pages 155 to 156 of Annexure A/MBSPL/PJT/12 relates to Sri Goruganti Damodar Rao, S/o. Goruganti Seetharama Rao. 2-37, Noothana Kallu, Miryalaguda, NALGONDA Dt. proceedings u/s. 153C is initiated. Put up notices u/s. 153C & 142(1) of the IT Act." 7.3 From this noting, it is seen that the proceedings under section 153C are initiated only because there were certain material documents seized during the course of search in the case of MBS Jewellers P. Ltd., and certain pages therein related to the assessee herein. There is no satisfaction recorded by the A.O. that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... influenced by the satisfaction of the seizing officer. In other words it is not an automatic action. Satisfaction of two officers is missing. In this connection the text of the order of the Assessing Officer is that a search and seizure operation under section 132 was carried out in the group case of TYG and others on 25-3-2010. During the course of search operation documents belonging to the assessee have been seized. Hence, it is considered to initiate proceeding under section 153C. [Para 6] The aforesaid section mandates recording of satisfaction of the Assessing Officer(s) is a pre-condition for invoking jurisdiction and it is not a mere formality because recording of satisfaction postulates application of mind consciously as the documents seized must be belonging to the any other person other than the person referred to in section 153A. It was contended that the same Assessing Officer was involved in the matter. This fact does not dispense with above requirement. It is settled position of law that when a thing is to be done in one particular manner under law this has to be done in that manner alone and not other way. The Tribunal has correctly followed the principle. Ther ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the case of M/s. Super Malls (P) Ltd. vs. Pr.CIT-8, New Delhi (423 ITR 281) (SC). In this case, the Hon'ble Apex Court held that when the AO of the searched person and the other person is same (as is the case in this appeal), there can be one satisfaction note prepared by the AO as he is the AO for the searched person and the other person. It was further held that the AO must be conscious and satisfied that the documents/seized from searched person belong to the other person. After discussing the preconditions before initiating 153C proceedings, the Hon'ble Apex Court went on to discuss the satisfaction note recorded by the AO in that case and based on the recording of the note, the Hon'ble SC held it in favour of the revenue. The relevant extract is reproduced below: "it cannot be disputed that the aforesaid requirements are held to be mandatorily complied with. There can be two eventualities. It may so happen that the Assessing Officer of the searched person is different from the Assessing Officer of the other person and in the second eventuality, the Assessing Officer of the searched person and the other person is the same. Where the Assessing Officer of the searc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... person and the other person and therefore there is no question of transmitting such seized documents to himself. 6.2. Now let us consider from the satisfaction note recorded by the Assessing Officer, in the present case. Whether there is a sufficient compliance of Section 153C of the Act or not. The satisfaction note reads as under: "Name and address of the assessee : M/s Super Malls (P) Ltd, Sector 12 HUDA Karnal Regd. Office at 51 Transport Centre Punjabi Bagh New Dlhi PAN : AAICS2163F Status : Company Reasons/Satisfaction note for taking up the case of Ms. Super Malls (P) Ltd. Sector-12 HUDA Karnal Regd. Office at 51, Transport Centre, Punjabi Bagh, New Delhi under Section 153C of the Income Tax Act, 1961. The jurisdiction of this case has been assigned to this Office u/s. 127 of the Income Tax Act, 1961 by the worthy Commissioner of Income Tax-III New Delhi vide order F. No CITIII/Delhi/Centralization/1012-1312455 dated 15.01.2013. By virtue of the authorization of the Director of Income Tax (Investigation), Chandigarh, a search & seizure operation u/s. 132(1) of the Act was carried out on 08/09.04.2010 at the residential/business premises of Sh. Tejwant Singh & Sh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... erson - the assessee and not the searched person. Thus, the High Court is justified in observing that the requirement of Section 153C has been fulfilled. On facts, we are in complete agreement with the view taken by the High Court on the requirement of Section 153C of the Act being fulfilled by the Assessing Officer before initiating the proceedings under Section 153C of the Act." (underlining added) The principles enunciated in the above ratio of the Hon'ble Supreme Court are applicable to the facts of the present case. However, unlike in the above case there is no conscious recording of satisfaction by the AO except stating that certain seized documents relates to the appellant. Hence this ratio, though applicable to the facts of the case, does not help the case at hand. 10.0 In the result, the appeal of the appellant for the AY 2009-10 is ALLOWED. 3. We find no merit in Revenue's instant sole substantive legal argument for the precise reason that the corresponding statutory provision i.e. sec. 153C [as on the date of search on 11.3.2010] as well as the satisfaction note dated 11.11.2011 and the corresponding material; found or seized during the course of search is ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
