9911796707
TMI Blog2015 (4) TMI 190X X X X Extracts X X X X X X X X Extracts X X X X ..... essment years 2000-01 to 2003-04. 2. The assessee was in appeal. The assessee raised common grounds in all appeals and it was aggrieved by the orders of the Commissioner of Income Tax (Appeals)-II, Pune. Since common questions pertaining to the same assessee and similar grounds were raised including the additional ground that the tribunal thought it fit to dispose of the appeals by the common order. 3. We are concerned here with the correctness of the tribunal's view and rendered on the legality and validity of the notice under section153C of the Income Tax Act, 1961. 4. Mr.Singh would submit that the discussion in the tribunal's order on the additional grounds raises substantial question of law. We are unable to agree with him a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... called for special audit. The Special Auditor completed audit and there were objections raised to the manner in which the audit was conducted. The Assessing officer arrived at the conclusion that the assessee must be treated as Association of Persons and it would not be entitled to the claim of exemption under section 11 of the Income Tax Act. The Assessing Officer assessed the income at Rs. 2,46,13,935,/- This was computation made by the Special Auditor. 5. Aggrieved by this order, the assessee filed an appeal before the Commissioner of Income Tax (Appeals), who partly allowed it. However, the assessee was not satisfied with the order of the Commissioner and challenged it in further appeal to the tribunal. 6. The tribunal allowed parties ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hich is recorded in the satisfaction note is enough, is erroneous. Therefore, the notice cannot be upheld and such stand of the revenue cannot be accepted. The reasons, therefor are to be found in paragraph 9 and 10 of the impugned order. If certain items pertain to assessment year 2004-05 or thereafter then it cannot be assumed, that the documents seized or incriminating material giving information are specific and to all assessment years. The tribunal has found that they were concluded assessments. They could not have been disturbed. The documents in question are neither incriminating ones nor unaccounted transactions of the assessee. They also did not relate to the four assessment years. It is in these circumstances that the tribunal fou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vague satisfaction as is relied upon. 7. It is in these circumstances that though Mr.Singh strenuously wanted to rely on the satisfaction note and particularly paragraph 4 thereof, we do not find that reading thereof can carry the case of the revenue any further. Rather it would contradict completely, the stand taken by the authorities. Mr.Navale HUF and Mr.Navale individually as the President of the assessee institute cannot be confused. If Mr.Navale has invested money in the Real Estate and which is not accounted that is his return of income which is reflected in the satisfaction note. If there is reference made to some loose papers found and seized from his residence indicating some "on money" receipt during the admission process then ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f the writ petition before the Delhi High Court. That was challenging the validity of notice under section 153C read with section 153A. In dealing with such situation and the peculiar facts that the Delhi High Court upheld the satisfaction and the Delhi High Court found that the machinery provided under section 153C read with section 153A equally facilitates inquiry regarding existence of undisclosed income in the hands of a person other than searched person. The provisions have been referred to in details in dealing with a challenge to the legality and validity of the seizure and action founded thereon. We do not find anything in this judgment which would enable us to hold that the tribunal's understanding of the said legal provision s ..... X X X X Extracts X X X X X X X X Extracts X X X X
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