TaxTMI 
TaxTMI 
2019 (3) TMI 569
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....O') for the A.Y. 2006-07 vide order dated 1.03.2013 under section 143(3) read with section 153C of the Income Tax Act, 1961 (hereinafter 'the Act'). 2. The only issue in this appeal of Revenue is against the order of CIT(A) quashing the assessment as well as noticed issued under section 153C of the Act without appreciating the facts. For this Revenue has raised the following two grounds: - "1. "Whether on the facts and circumstances of the case and in law, the Id. CIT(A) was justified in quashing the notice issued u/s 153C of the Act as well as the assessment order dated 11. 03.2013 u/s 143(3) r.w.s. 153C of the Act without appreciating the fact that the A.O. of the searched person and A.O. of the person and A.Q. of the other person i....
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....gh the satisfaction recorded in the case of assessee, the facts narrated by CIT(A) in Para 5.3.1 as under: - "5.3.1 I find that search u/s 132 was conducted in the case of Shri Subash Deshmukh on 28.03.2011 and notice u/s 153C was issued to the appellant firm on 15.06.2012 after recording following reasons/ satisfaction:- Name : M/s L.S. Developers Address: C/o Meenakshi Bazar Limit Shankar mandir, Ajinkya Colony Powai Naka, Satara-415001 Satus: Firm PAN: AACFL6884B Date: 15.05.2012 Reasons for invoking provisions of section 153C of the I.T. Act. 1961 Consequent to the search action, during the course of assessment proceedings u/s.153A of the Act in the case of Subhash Deshmukh. it was found that the contents of page....
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....corded in the files of Shri. Subhash Deshmukh, as per the assessment records for A.Yrs. 2005-06 to 2011-12, submitted by the A.O." 4. The learned Counsel for the assessee stated that exactly similar facts has been recorded by the Tribunal in other AYs i.e. 2007-08 and 2008-09 in ITA No. 4827 & 4828/Mum/2017 vide order dated 01.01.2018 vide Para 5 to 8 as under: - "5. I have heard both the counsels and perused the records. The ld. Departmental Representative relied upon the orders of the Assessing Officer. But he did not dispute the proposition that there was no satisfaction in the case of searched person that the incriminating material found belonged to the assessee. 6. Per contra, the ld. Counsel of the assessee submitted that thi....
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....d that there is not satisfaction recorded in the case of the searched person, i.e., Shri Subhash Deshmukh that the incriminating materials seized belong to the assessee. The ld. Departmental Representative has also not disputed this proposition. Hence, though the satisfaction is there in the case of assessee, i.e., there is no such satisfaction in the case of searched person that the incriminating material belongs to the assessee. In this situation, the assessment order has been held to be invalid, in the aforesaid tribunal decision. We may gainfully refer to the said decision as under: ............................................ 8. I find that the issue from the above decision is admittedly applicable on the facts of the case. Accor....
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....from his premises, belong to the appellant i.e. M/s L.S. Developers and only thereafter, the AO could have assumed justification under section 153C to issue notice and make assessment in the case of M/s L.S. Developers. This follows from the decision of the Hon'ble High court of M.P. in the case of CIT vs. M/s Mechmen Bhopal dates 10.07.2015 (380 ITR 591), in which, after considering the decision of the Hon'ble Supreme Court in the case of CIT vs. Calcutta Knitwears 362 ITR 673 (SC), it has been held as under" 4. In view of the above, the ITAT Bench wants to know whether satisfaction was recorded by the Assessing officer in the file of Shri Subhash Deshmukh in whose case search and seizure action was undertaken u/s 132, that some seized ....