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TMI Blog2016 (6) TMI 83X X X X Extracts X X X X X X X X Extracts X X X X ..... ion was conducted at assessee's premises on 30/7/2008 as part of Rajdarbar Group. Notice u/s 153C of Income Tax Act 1961 dated 23/07/2010 was issued to the assessee firm requiring it to file the return for the various assessment years. The satisfaction was recorded by the same Assessing Officer on 23/7/2010. The satisfaction recorded in A.Y. 2005-06 is as under:- 23.07.2010 Satisfaction note for proceedings u/s. 153C of the Income Tax Act, 1961 A search operation was conducted on Raj Darbar Group of cases on 31.07.2008. During the course of search operations at the premises of (i) Party A-7, Global Reality Venturese Pvt. Ltd. Various papers were found and seized belonging to M/s. Narsi Creations. The annexure are marked as under: ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aving jurisdiction to initiate Section 153C proceedings against the assessee and, therefore, the issuance of notice itself is null and void and, therefore, the same may be quashed. The Ld. AR submitted that the same A.O on the strength of identical satisfaction and not only that on the very same date recorded the satisfaction to proceed u/s 153C against the assessee. In case of Nageshwar Investment Ltd also the same A.O on the same date on which the satisfaction recorded u/s 153C against the assessee. And in the instant case before us also the same is repeated i.e on 23/7/2010 made a ditto copy of satisfaction except in the change of name of the assessee. The satisfaction is already reproduced hereinabove. The Ld. AR also submitted that the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n under Section 153C can be taken in respect of any other person than the person searched, if the Assessing Officer of the person searched is satisfied that any money, bullion, jewellery or other valuable article or thing or books of account or documents belong to a person other than the person searched. In such circumstances, he shall hand over to the Assessing Officer of such other person money, bullion, jewellery or other valuable article or thing or books of account or documents. Thereafter, the Assessing Officer of such other person shall proceed against the said person to assess or reassess his income in accordance with the provisions of Section 153A. Therefore, recording of satisfaction by the Assessing Officer of the person searched ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s it was found, is not mentioned. The last line of the satisfaction note reads "Thus the proceedings u/s. 153C r.w. section 153A of the Income Tax Act, 1961 are being initiated in the above case." A plain reading of the above sentence indicates that it is recorded by the Assessing Officer who is taking action under Section 153C. Thus, it seems that the satisfaction note is recorded by the Assessing Officer of the assessee. If the Assessing Officer is assessing the person searched as well as other person whose assets, books of account or documents were found at the time of search, then also, first while making the assessment in the case of the person searched, he has to record the satisfaction that the money, bullion, jewellery or other valu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... said to be a valid satisfaction note within the meaning of Section 153C. 12. Apart from above, we find that jurisdiction under Section 153C has been assumed only on the basis that during the course of search of one of the persons of. It is not in dispute that the assessee had filed the return for AY 2004-05 alongwith the original copy of the audited profit & loss account and balance sheet. Search had taken place on 31.07.2008 while the return of income alongwith the original profit & loss account and balance sheet was already filed more than three and a half years before the date of search. In the remand report dated 23.07.2010, the Assessing Officer has also not disputed the above fact but he tried to justify action under Section 153C on ..... X X X X Extracts X X X X X X X X Extracts X X X X
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