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TMI Blog2024 (4) TMI 1183X X X X Extracts X X X X X X X X Extracts X X X X ..... und from the premises of Shri Mukesh Khurana and Shri Mukesh Khurana himself has not signed that document. There is mere mention of Rs. 20 crores in cash and PDC but neither date is mentioned nor any dates of post dated cheques have been mentioned. Such error goes on to show that the Assessing Officer has recorded the satisfaction in haste and without application of mind for the year under consideration. In our considered opinion, mere seizure of illegal unauthorized MOU found from the premises of third party whose statement was never recorded by the INV Wing nor by the AO and reference to the entries in the MOU does not reflect the date of payment and bifurcation of the amount in cash and post dated cheques could not be basis to initiate p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... quashed. 5. That none of the notices, assessment order or demand notice u/s. 156 of the Act have ever been served upon the appellant and the appeal before the CIT(A) was filed after obtaining certified copies of the notices, assessment orders only on 26.02.2019. That no demand notice u/s. 156 of the Act has been served upon the appellant till date. 6. That the notice u/s. 153C dated 16.02.2016 has not been served upon the appellant. 7. That the notice u/s. 153C dated 16.02.2016, suffers from serious lapses and the procedure as mandated for issue of the notice has not been followed 8. That the notice u/s. 153C dated 16.02.2016 is barred by limitation. 9. That the order passed by the CITCA) suffers from jurisdiction and the matter should have ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd bad in law. 7. Satisfaction note is dated 16.02.2016 and reads as under: 8. Vide order dated 15.02.2016, framed u/s 127(2) of the Act, the PCIT, Delhi 2, New Delhi transferred the jurisdiction of the assessee to the ACIT/DCIT, Central Circle, Noida pursuant to which the Income tax Officer, Ward -4(4), New Delhi, transferred the record of the assessee on 19.02.2016. 9. As mentioned elsewhere, satisfaction note for initiation of proceedings u/s 153C of the Act is dated 16.02.2016 whereas the record of the assessee was transferred on 19.02.2016, which conclusively proves that the Assessing Officer assumed jurisdiction without having any access to the record of the assessee thereby conclusively proving that satisfaction note has been drawn w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is mentioned that Rs. 20 crores have been paid in cash and in Post Dated Cheques. It is not coming out how much cash was paid and how much was paid by post dated cheques. There is no evidence whatsoever to conclusively show that the land sale mentioned in the Memorandum of Understanding actually took place. The Assessing Officer did not make any investigation from the Noida authorities to verify whether actual sale took place or not. 13. Interestingly, there is nothing on record to show any action taken against the seller M/s Sunshine Infratech Pvt Ltd, because the alleged incriminating document if belongs/pertains to the assessee, then, equally belongs /pertains to M/s Sunshine Infratech Pvt Ltd. Without recording any finding that what is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eived have a bearing on the determination of the total income of the Assessee and if he is so satisfied that the same have a bearing on the determination of the income of the assessee, he has to issue notice and assess or reassess the income of the assessee in accordance with the provisions of Section 153A of the Act. Section 153A of the Act requires that a notice be issued to the person sought to be assessed, calling upon the said assessee to file his return of income in respect of each year falling within the specified six AYs. It is further specified that the provisions of the Act shall, so far as may be, applied as if such returns were returns required to be furnished under Section 139 of the Act. Thus, the assessing officer has to, the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nce to the entries in the MOU does not reflect the date of payment and bifurcation of the amount in cash and post dated cheques could not be basis to initiate proceedings u/s 153C of the Act. 19. Considering the facts discussed hereinabove, we are of the opinion that the assumption of jurisdiction by recording the aforementioned satisfaction note is bad in law. Since the proceedings have been initiated on wrong assumption, the entire assessment proceedings get vitiated and deserve to be quashed. 20. Since we have quashed the assessment order, we do not find it necessary to dwell into the merits of the case. 21. In the result, the appeal of the assessee in ITA No. 684/DEL/2020 is Partly Allowed. The order is pronounced in the open court on 0 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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