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TMI Blog2018 (2) TMI 1202X X X X Extracts X X X X X X X X Extracts X X X X ..... r.w.s. 153C r.w.s. 263 of the Income Tax Act, 1961 (hereinafter referred to as "the Act") dated 11/12/2012 & 13/12/2012 for AYs 2005-06 & 2006-07 respectively. 2. The assessee has also filed cross-objections in the respective appeals of the Revenue wherein the assessee has challenged the validity of proceedings itself in invoking section 153C of the Act. 3. As the cross-objections of the assessee seeks to strike the very bais of assumption of jurisdiction under s.153C by asserting that the assumption of jurisdiction itself is void ab initio and thus subsequent assessment proceedings are without authority of law, it is desirable to adjudicate the cross-objections of the assessee first. 4. For the sake of convenience, we shall take up Cros ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... .263 of the Act was challenged before the CIT(A) wherein the jurisdiction exercised under s.153C of the Act was inter alia agitated. It was inter alia contended before the CIT(A) that no incriminating material relating to the assessee was found for invoking provisions of section 153C of the Act in the case of the assessee herein. It was further contended before the CIT(A) that no 'satisfaction' was recorded by the Assessing Officer (AO) of the searched party as contemplated under s.153C of the Act. It was submitted by the Ld.AR that the CIT(A) did not pay heed to the aforesaid challenge concerning jurisdictional defect and dismissed it summarily. The Ld.AR thereafter referred to the copy of the 'Inspection Report' obtained from the AO on 18 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rched person which ultimately triggered section 153C of the Act in the hands of the assessee concerning AY 2005-06 as well as AY 2006- 07. It is also manifest that no incriminating material belonging to the assessee was found and seized which is belonging to the assessee per se. The AO has failed to discharge its onus for bringing incriminating material on record. The Ld.AR thereafter contended that no satisfaction note recorded by the AO of searched person, if any, is also available on record for assumption of jurisdiction for assessment under s.153C of the Act. The Ld.AR accordingly submitted that the basic ingredients for assumption of jurisdiction itself are conspicuously absent in the present appeals. The Ld.AR accordingly submitted th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hority (JCIT) contemplated under s.153D of the Act, the assessment order passed cannot be sustained. The Ld.AR accordingly urged that either the assessment order giving rise to the present appeal requires to be quashed in view of the substantive multiple legal infirmities as pointed out above. 6. Per contra, the Ld.DR relied upon the orders of the authorities below. 7. We have carefully considered the rival submissions and the orders of the authorities below, case-laws cited and material placed on record. The predominant question for determination in the present appeal is towards validity of the assessment order passed under s.153C r.w.s.143(3) of the Act alleging lack of jurisdiction by the assessee. 8. To address the issue, we take not ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ces the allegation of absence of any incriminating material. 8.2. The AO of searched person, as a jurisdictional requirement, must record his satisfaction that incriminating material found as a result of search belongs to assessee herein. In this regard, we take note of the plea of the assessee that no satisfaction note has been found recorded by the AO of the searched person to show that any money, bullion, jewelery or other valuablearticles or things or books of accounts or documents seized etc. belongs to the assessee-company which has any bearing on the determination of total income of assessee herein. It goes without saying that substantive action under s.153C is not permissible for an empty cause without corroboration of incriminatin ..... X X X X Extracts X X X X X X X X Extracts X X X X
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