2016 (2) TMI 1208

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....Act, 1961. 2. In the appeals filed by the assessee, the following additional grounds, as taken from the appeal for assessment year 2006-07(ITA No.952/Hyd/2013), were raised by the assessee - "1. The Learned CIT(A) failed to note that the satisfaction as enjoined in Section 153C of the IT Act,1961 that the Appellant had undisclosed income not having been recorded by the Assessing Officer in the assessment file of AMR Construction(P)Ltd who was subject to proceedings u/s. 132 of the ITA Act, 1961 and therefore the order passed u/s. 153(3) r.w.s. 153C of the IT Act, 1961 in the case of the Appellant for the assessment year 2006-2007** is bad in law invalid without jurisdiction and must be annulled. 2. The Learned CIT(A) fa....

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....lowances. On appeal, the CIT(A) partly accepted the contentions of the assessee, and thus, the Revenue as well as the assessee are in appeal before the Tribunal. 4. By way of additional ground, the assessee contends that in order to assume jurisdiction under S.153C of the Act, it is mandatory on the part of the Assessing Officer, in the assessment file of M/s. AMR Constructions P. Ltd., which was subject to proceedings under S.132 of the Act, to record satisfaction that the assessee's income escaped assessment, and in the absence of recording satisfaction by the Assessing Officer dealing with the matter of M/s. AMR Construction P. Ltd., the ACIT, Central Circle III, Hyderabad has no jurisdiction to initiate the proceedings under S.153C o....

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....assessments framed under S.153C deserve to be quashed. 5. Learned Departmental Representative fairly admitted that the issue stands squarely covered by the Circular issued by the CBDT as well as the decision of the jurisdictional High Court. At the same time, the Learned Departmental Representative contended that nonrecording of satisfaction is only a procedural irregularity and one has to refer to the facts of the case and the incriminating documents found during the course of search proceedings to appreciate whether it is a deserving case for initiating the proceedings under S.153C of the Act. Thus, he strongly supported the order passed by the Assessing Officer. 6. Having regard to the rival submissions and in the light of the deci....