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2015 (9) TMI 1622 - AT - Income TaxValidity of the proceedings u/s 153C - Held that - Considering the facts in the light of Order of the Tribunal 2017 (11) TMI 909 (ITAT-Delhi) the issue is covered in favour of the assessee by the above Order for subsequent A.Ys. 2009-2010 to 2011-2012. Following the same, we set aside the orders of the authorities below and quash the proceedings initiated under section 153C. Resultantly, the addition made by the A.O. stands deleted.
Issues:
Challenging validity of proceedings under section 153C of the I.T. Act, 1961 and addition of Rs. 9,15,000. Analysis: The appeal was against the Order of the Ld. CIT(A)-XXVII, New Delhi, for the A.Y. 2008-2009, regarding the initiation of proceedings under section 153C of the I.T. Act and the addition of Rs. 9,15,000. The search and seizure operation under section 132 of the I.T. Act was conducted, leading to the discovery of incriminating documents related to the assessee. The Assessing Officer (A.O.) issued a notice under section 153C based on the satisfaction note recorded. The income was computed by the A.O. after considering the assessee's explanation. The assessee contested the initiation of proceedings under section 153C and the addition made by the A.O. The appeal filed by the assessee challenging these issues was dismissed. However, upon further examination, it was noted that the issue was already decided in favor of the assessee by the ITAT, Delhi Bench in previous cases related to subsequent assessment years. The Order of the ITAT, Delhi Bench in previous cases held that the initiation of proceedings under section 153C was not valid as the satisfaction note was not recorded properly. Citing precedents, the Tribunal quashed the proceedings under section 153C, leading to the allowance of the assessee's appeals for the relevant assessment years. Based on the precedents and the Order of the Tribunal in previous cases, the current appeal was allowed in favor of the assessee. The orders of the authorities below were set aside, and the proceedings initiated under section 153C of the I.T. Act were quashed. Consequently, the addition made by the A.O. was deleted, resulting in the allowance of the appeal of the assessee.
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