TaxTMI Login
Just a moment...
Press 'Enter' to add multiple search terms. Rules for Better Search
of 
of 
No Folders have been created
Are you sure you want to delete "My most important" ?
NOTE:
of of 
All Case Laws
of of All Case Laws
Note
Bookmark
Share
Don't have an account? Register Here
of <h1>Challenge to s.153C and s.142(1) notices dismissed; petitioner failed to prove absence of AO satisfaction note before s.153C notice.</h1> HC dismissed challenge to notices issued under s.153C and s.142(1), holding petitioner failed to prove absence of an AO's satisfaction note prior to the ... Validity of Proceedings u/s 153C - manadation of satisfaction note of the AO before proceeding u/s 153C - HELD THAT:- We are not in a position to accept the contention of the learned counsel for the petitioner that there was no satisfaction note of the Assessing Officer before proceeding under Section 153C of the Act’1961. It may be noted that the petitioner has filed return in compliance of the notice under Section 142(1) dated 11.12.2023. The notice u/s 153C for the A.Y.2014-15 under challenge is dated 09.06.2022. As the petitioner has approached this Court, in the instant petition, only after issuance of the notice under Section 142(1) dated 11.12.2023 after filing of the return, we do not find it a fit case to interfere at this stage, on the sole ground that the satisfaction note was not provided to the petitioner along with the notice dated 09.06.2022 issued under Section 153C for A.Y. 2014-15 and, as such, the entire proceedings leading to issuance of notice under Section 142(1) dated 11.12.2023 stands vitiated. The points raised by assessee on the plea of lack of jurisdiction of the AO in issuing notice under Section 153C of the Act, can not be appreciated by us, as it could not be demonstrated that no satisfaction note was recorded by the Assessing Officer prior to issuance of the notice under Section 153C of the Act’1961 on 09.06.2022. No merit in the challenge made in the bunch of writ petitions to the notice under Section 153C. The request for stay of the order for a period of four weeks to enable the petitioner to approach the Apex Court is hereby rejected. Issues: (i) Whether initiation of assessment proceedings under Section 153C of the Income-tax Act, 1961 dated 09.06.2022 is vitiated for non-provision of the satisfaction note to the petitioner; (ii) Whether the notices dated 09.06.2022 (Section 153C) and 11.12.2023 (Section 142(1)) and the objection disposal order dated 02.12.2023 are liable to be quashed.Issue (i): Whether initiation under Section 153C was invalid due to non-provision of the satisfaction note to the petitioner.Analysis: The satisfaction note was recorded by the Assessing Officer and, though not initially supplied with the Section 153C notice, was subsequently served on the petitioner prior to issuance of the Section 142(1) notice; the petition did not disclose service of the satisfaction note and the petitioner filed return after the Section 142(1) notice. Earlier authorities and CBDT guidance require recording of a satisfaction note, but the factual position showed a satisfaction note existed and was later provided.Conclusion: The contention that initiation under Section 153C was vitiated solely because the satisfaction note was not provided with the original notice is rejected; petitioner may raise objections during assessment.Issue (ii): Whether the notices dated 09.06.2022 and 11.12.2023 and the objection disposal order dated 02.12.2023 are liable to be quashed.Analysis: The petition challenged the notices and the objection disposal on facts including alleged absence of incriminating material and mechanical disposal; however, on the record the satisfaction note existed and the petitioner was not precluded from raising objections before the Assessing Officer or pursuing remedies under the Act. Pre-enforcement judicial interference at the notice stage was not warranted in the circumstances.Conclusion: The challenge to the notices and the objection disposal order is without merit and is dismissed; the petitioner remains free to raise all objections during assessment proceedings and before statutory forums.Final Conclusion: The writ petitions are dismissed and the petitioner is relegated to raise all factual and legal objections during the assessment process and before the appropriate statutory authorities; no opinion is expressed on merits of the assessment issues.Ratio Decidendi: Where a satisfaction note required for proceedings under Section 153C exists (even if initially not supplied with the Section 153C notice) and the affected person is given opportunity to participate in assessment and to raise objections, interlocutory quashing of notices is not warranted; factual objections to the validity of satisfaction must be addressed in the statutory assessment or appellate fora.
TaxTMI 
TaxTMI 
