TMI Blog2021 (10) TMI 401X X X X Extracts X X X X X X X X Extracts X X X X ..... the same implication, although the grammatical expression employed herein may vary from case to case not acceptable as in light of judgment in CWT vs. B. Chatterjee [ 1976 (4) TMI 1 - SUPREME COURT] and Late Nawab Sir Mir Osman Ali Khan [ 1986 (10) TMI 2 - SUPREME COURT] that the clinching expression belongs carries the rightful sense of ownership. We therefore adopt stricter interpretation as per the Commissioner of Customs vs. Dilip Kumar Co [ 2018 (7) TMI 1826 - SUPREME COURT] and hold that as the Assessing Officer's impugned assessment is not based on a valid satisfaction note and therefore, the CIT(A)'s order quashing the same deserves to be upheld. - Decided against revenue. - ITA No. 231/Hyd/2021 - - - Dated:- 29-9-2021 - Satbeer Singh Godara, Member (J) And Laxmi Prasad Sahu, Member (A) For the Appellant : Y.V.S.T. Sai, DR For the Respondents : A.V. Raghu Ram ORDER Per S S Godara , JM This Revenue's appeal is directed against the CIT(A)-12, Hyderabad's order dated 29/03/2021 in case No. 10151/2019-20 involving proceedings u/s. 143(3) r.w.s. 153C of the Income Tax Act, 1961 [in short the Act ]. Heard both the parties. Case ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lant as well as the observations of the AO in the impugned order. The 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 03 to 09 of Annexure A/PCG/Res/01 relates to Mrs. Reena Peterson w/o. R. Peterson proceedings u/s. 153C is initiated....... 5.3 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. in the case of MBS Jewellers P. Ltd., that the income mentioned in the documents belongs to the assessee herein. The Honble A.P. High Court in the case of CIT-III, Hyderabad vs. Shettys Pharmaceuticals Biologicals Ltd., (supra) has held as under: Held ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the AO has recorded identical satisfaction note as was done in the case of Aashi Plywood Industries (cited supra). The Assessing Officer has simply recorded that certain seized pages relates to the appellant and hence notice U/S. 153C is to be issued. Nowhere therein is a recording of satisfaction by the AO that the seized documents belong to the appellant. The CBDT vide Circular No. 24/2015 dated 31/12/2015 has clearly stated that even when the AO of the searched person and the other person is the same, then also recording of satisfaction is mandatory. In view of the decision of the Jurisdictional High Court in Shetty Pharmaceuticals Biologicals Ltd. (57 taxmann.com 287) (2015)(AP) and the decision of my predecessor, the Ld. CIT(A) in Aashi Plywood Industries referred above, I am of the considered view that the order under reference does not survive as there is no valid satisfaction/reasons recorded by the concerned AO. As such, the proceedings u/s. 153C are held to be annulled, on the ratio of the Jurisdictional High Court and the decision of my predecessor Ld. CIT(A) on similar set of facts and identical reasons. Thus the proceedings u/s. 143(3) r.w.s. 153C are held to have no ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... so. However, as rightly observed and held by the Delhi High Court in the case of Ganpati Fincap (supra), the same is for the administrative convenience and the failure by the Assessing Officer of the searched person, after preparing and dispatching the satisfaction note and the documents to the Assessing Officer of the other person, to make a note in the file of a searched person, will not vitiate the entire proceedings under Section 153C of the Act against the other person. At the same time, the satisfaction note by the Assessing Officer of the searched person that the documents etc. so seized during the search and seizure from the searched person belonged to the other person and transmitting such material to the Assessing Officer of the other person is mandatory. However, in the case where the Assessing Officer of the searched person and the other person is the same, it is sufficient by the Assessing Officer to note in the satisfaction note that the documents seized from the searched person belonged to the other person. Once the note says so, then the requirement of Section 153C of the Act is fulfilled. In case, where the Assessing Officer of the searched person and the other per ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... en drives. These documents contain the details of cash receipt on sale of shop/offices at M/s. Super Mall, Karnal also beside other concerns. These documents are required for assessment proceedings. During the statement of Sh. Ved Parkash Bharti at the time of search, he has also stated that these documents pertain to him and M/s. Super Mall (P) Ltd., Karnal in which he is Director. In view of the above and as per the provisions of sub-section 91 of Section 153C of the Act, I am satisfied that the document seized from the residence of Sh. Ved Parkash Bharti belongs to a person i.e. Super Mall (P) Ltd., other than the person referred in section 153A. Accordingly, it is directed to issue such person (M/s. Super Mall (P) Ltd.) notice and assess and reassess income in accordance with the provision of section 153A of the Act. Dated: 22.02.2013 Sd/- (VED PARKASH KALIA) From the aforesaid satisfaction note, it emerges that the Assessing Officer is satisfied that the documents containing the details of the cash receipts on sale of shop/offices at M/s. Super Mall, Karnal belonged to the other person - assessee - M/s. Super Mall. He is also satisfied that the documents/p ..... X X X X Extracts X X X X X X X X Extracts X X X X
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