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2018 (9) TMI 703 - AT - Income TaxValidity of the proceedings u/s 153C - non recording of satisfaction note - Held that - As relying on assessee s own case 2017 (11) TMI 909 - ITAT DELHI we quash the proceeding initiated under section 153C of the Act on the ground that satisfaction note was not recorded by the Assessing Officer in the capacity of Assessing Officer of searched person and in any case since there is no satisfaction recorded of any seized documents being belonging to the assessee, hence, the other grounds on merits challenging the additions have become academic, which do not require adjudication. As a result, the appeal of the assessee stands allowed.
Issues: Validity of proceedings under section 153C of the I.T. Act, 1961 and addition of ?9,15,000.
Analysis: 1. The appeal was filed against the Order of the Ld. CIT(A)-XXVII, challenging the validity of the proceedings under section 153C of the I.T. Act, 1961, and the addition of ?9,15,000. The search and seizure operation under section 132 of the I.T. Act was conducted in the case of M/s. Focus Energy Group, where incriminating documents related to the assessee were found. The satisfaction note for invoking Section 153C was recorded, and the income was computed by the A.O. 2. The assessee contested the initiation of proceedings under section 153C and the addition made by the A.O. The appeal was dismissed, leading to the matter being brought before the ITAT, Delhi. The ITAT found that the satisfaction note was not recorded properly by the Assessing Officer and quashed the proceedings initiated under section 153C for the relevant assessment years. 3. The ITAT relied on its previous decision in the case of the assessee for assessment years 2009-2012, where similar issues were addressed, and the proceedings under section 153C were quashed. Following the consistent view, the ITAT set aside the orders of the authorities below and deleted the addition made by the A.O. The appeal of the Assessee was allowed based on the previous rulings and the lack of proper recording of satisfaction notes. 4. In conclusion, the ITAT ruled in favor of the assessee, quashing the proceedings initiated under section 153C of the I.T. Act and deleting the addition made by the A.O. The decision was based on the lack of proper recording of satisfaction notes and the precedents set by previous rulings.
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