Absence of valid satisfaction recorded by AO before initiating ...

Lack of valid satisfaction note before issuing notice under special provision rendered assessment null & void. AO lacked jurisdiction. Penalties quashed. Assessee's appeals allowed.

Case Laws     Income Tax

August 9, 2024

Absence of valid satisfaction recorded by AO before initiating assessment under special provision where search took place. Satisfaction note did not reveal AO's averment regarding satisfaction that money, bullion, jewellery or other valuables belong to assessee or seized documents pertain/relate to assessee, which is jurisdictional fact required to usurp jurisdiction under relevant section. AO did not record valid satisfaction before issuing notice to assessee under relevant section. Subsequent framing of assessment order under relevant sections is null and void. AO lacked jurisdiction to frame assessment under relevant sections for relevant assessment years. Penalties levied under relevant section pursuant to quantum assessment framed under relevant section quashed, as foundation removed and consequential orders fall automatically as per legal maxim and Supreme Court decision. Assessee's appeals allowed.

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