2016 (6) TMI 83

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....nd. 3. In this case, search and seizure action was conducted at assessee's premises on 30/7/2008 as part of Rajdarbar Group. Notice u/s 153C of Income Tax Act 1961 dated 23/07/2010 was issued to the assessee firm requiring it to file the return for the various assessment years. The satisfaction was recorded by the same Assessing Officer on 23/7/2010. The satisfaction recorded in A.Y. 2005-06 is as under:- 23.07.2010 Satisfaction note for proceedings u/s. 153C of the Income Tax Act, 1961 A search operation was conducted on Raj Darbar Group of cases on 31.07.2008. During the course of search operations at the premises of (i) Party A-7, Global Reality Venturese Pvt. Ltd. Various papers were found and seiz....

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....ment Ltd. the Hon'ble ITAT has allowed the appeal on the ground that the Assessing Officer was not having jurisdiction to initiate Section 153C proceedings against the assessee and, therefore, the issuance of notice itself is null and void and, therefore, the same may be quashed. The Ld. AR submitted that the same A.O on the strength of identical satisfaction and not only that on the very same date recorded the satisfaction to proceed u/s 153C against the assessee. In case of Nageshwar Investment Ltd also the same A.O on the same date on which the satisfaction recorded u/s 153C against the assessee. And in the instant case before us also the same is repeated i.e on 23/7/2010 made a ditto copy of satisfaction except in the change of name of ....

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....ther person in accordance with the provisions of section 153A:]." 9. From the above, it is evident that action under Section 153C can be taken in respect of any other person than the person searched, if the Assessing Officer of the person searched is satisfied that any money, bullion, jewellery or other valuable article or thing or books of account or documents belong to a person other than the person searched. In such circumstances, he shall hand over to the Assessing Officer of such other person money, bullion, jewellery or other valuable article or thing or books of account or documents. Thereafter, the Assessing Officer of such other person shall proceed against the said person to assess or reassess his income in accordance with the ....

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....f name of the assessee. There is no mention of the name of the Assessing Officer. During the search of whose premises it was found, is not mentioned. The last line of the satisfaction note reads "Thus the proceedings u/s. 153C r.w. section 153A of the Income Tax Act, 1961 are being initiated in the above case." A plain reading of the above sentence indicates that it is recorded by the Assessing Officer who is taking action under Section 153C. Thus, it seems that the satisfaction note is recorded by the Assessing Officer of the assessee. If the Assessing Officer is assessing the person searched as well as other person whose assets, books of account or documents were found at the time of search, then also, first while making the assessment in....