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TMI Blog2022 (8) TMI 1129X X X X Extracts X X X X X X X X Extracts X X X X ..... notice u/s. 153C was issued on 05/01/2015 by the ACIT, Circle-5(1), Visakhapatnam to the assessee. The assessee filed its return of income u/s. 153C admitting a total income of Rs.8,34,520/-. Subsequently, the case was selected for scrutiny and statutory notices u/s. 143(2) and 142(1) were issued on the assessee. During the course of assessment proceedings the assessee's representative submitted that the transactions in the name of Sri Palla Sankara Rao unearthed during the course of search were admitted in the hands of Palla Simhachalam (HUF) and accordingly the AO based on the information completed the assessment determining the total income at Rs. 12,34,450/- after obtaining prior approval from the JCIT, Range-5, Visakhapatnam u/s. 153D of the Act. Aggrieved by the order of the Ld. AO, assessee filed an appeal before the Ld. CIT (A). The Ld. CIT(A), while disposing off the appeal by way of consolidated order, dismissed the appeals and uphold the order of the Ld. AO. Aggrieved by the order of the Ld. CIT(A), the assessee is in appeal before us. 3. The assessee has raised the common grounds in all the four appeals from AY 2009-10, 2011-12, 2012-13 and 2013-14 and they are extrac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ase of CIT vs. Calcutta Knitwears [2014] 223 Taxman 0115 (SC). The Ld. AR also further placed reliance on the Circular No. 24/2015, dated 31/12/2015 wherein a clarificatory circular was issued by the Central Board of Direct Taxes [CBDT] based on the outcome of the Hon'ble Supreme Court decision in the case of CIT vs. Calcutta Knitwears (supra). The Ld. AR also relied on several case laws as submitted in the paper book. Per contra, the Ld. Departmental Representative [Ld. DR] argued that the search was conducted in the month of March, 2014 on the individual Sri PallaSankara Rao wherein the searched person Sri PallaSankara Rao while recording the statement u/s. 131(1A) and submitted vide Q.No.3 that the undisclosed income belong to PallaSimhachalam(HUF). The Ld. DR further submitted that based on the voluntary admission by the searched person Sri PallaSankara Rao notice u/s. 153C was issued to PallaSimhachalam(HUF) by the AO since the AO being the same Assessing Officer for both the searched person and the assessee. Therefore, the Ld. AR pleaded that the satisfaction note need not be issued. The Ld. DR also submitted a letter from DCIT, Circle-3(1), Visakhapatnam stating that since ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f section 153A, if, that Assessing Officer is satisfied that the books of account or documents or assets seized or requisitioned have a bearing on the determination of the total income of such other person for six assessment years immediately preceding the assessment year relevant to the previous year in which search is conducted or requisition is made and for the relevant assessment year or years referred to in sub-section (1) of section 153A: Provided that in case of such other person, the reference to the date of initiation of the search under section 132 or making of requisition under section 132A in the second proviso to sub-section (1) of section 153A shall be construed as reference to the date of receiving the books of account or documents or assets seized or requisitioned by the Assessing Officer having jurisdiction over such other person : Provided further that the Central Government may by rules made by it and published in the Official Gazette, specify the class or classes of cases in respect of such other person, in which the Assessing Officer shall not be required to issue notice for assessing or reassessing the total income for six assessment years immediately prec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in that case the Assessing Officer was satisfied and it was specifically mentioned that the books of account seized were belonging to the assessee-other person, and therefore concluded that it cannot be said that the mandatory satisfaction given u/s. 153C of the Actare not being complied with. In the instant case, inspite of repeated requests from the AR, the Revenue has not produced any satisfaction note either to the assessee or before us. Further, it is also noted from the letter of the DCIT, Circle-3(1), Visakhapatnam that the satisfaction recorded before the issue of notice U/s. 153C was not found as per the order sheet notings. The Circular No. 24/2015, dated 31/12/2015 relied on by the Ld. AR is reproduced below: CIRCULAR NO. 24/2015 F.No.279/Misc./140/2015/ITJ Government of India Ministry of Finance Department of Revenue Central Board of Direct Taxes ***** New Delhi, 31st December, 2015 Subject: Recording of satisfaction note under section 158BD/153C of the Act - reg. The issue of recording of satisfaction for the purposes of section 158BD/I53C has been subject matter of litigation. 2. The Hon'ble Supreme Court in the case of M/s Calcutta Knitwears in it ..... X X X X Extracts X X X X X X X X Extracts X X X X
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