AI Drafter 
TaxTMI 
TaxTMI 
2019 (10) TMI 120
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....ection 132 of the Act in the case of Lalit Jobanputra Group on 19.08.2011. The facts and circumstances are identical in all the four years and issue is common. Even the grounds raised by Revenue in all the four years are identically worded and hence, will take the facts from AY 2008-09 in ITA No 7042/Mum/2017 and will decide the issue. The grounds raised in AY 2008-09 reads as under: - "(i) Whether on the facts and circumstances of the case and in law, the Ld. CIT(A) was justified in deleting the addition of Rs. 29,06,00,000/- on account of undisclosed receipts noted on documents seized during the course of search and seizure action under section 132 of the Act, without appreciating the findings of the Assessing Officer that the receipt were prepared by the director himself after due diligence and deliberation which lends credence to the importance of those documents for taking the assessment proceedings to a logical conclusions leading to the addition under section 292C of the Act, which states that such document shall be treated to be belonging to the assessee and the contents of such documents shall be presumed to be true? (ii) Whether on the facts and circumst....
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....ne Commission Account, Airline Incentive Account and Airline Due Agent account together with the Cargo Sales Report (CSR) and these evidences were referred to the AO by the CIT(A) vide letter No. CIT(A)-47/JAC Air Services/Rem/Rep./2017-18 dated 22.08.2017. The AO despite the numerous opportunities and sufficient time to conduct the verification of the additional evidences and for furnishing of remand report could not submit the report or could not conduct the enquiry. The CIT(A) has reproduced documents seized along with the details filed by the assessee and consider that these notes are not incriminating documents and deleted the addition by holding that the seized papers are duly recorded in the regular books of account and hence, cannot be held to be incriminating in nature. Aggrieved, against the deletion, Revenue is in appeal before Tribunal in all these four years. 4. Before us, the learned Counsel for the raised a new issue in support of the order of CIT(A) in term of Rule 27 of the Income-tax (Appellate Tribunal) Rules, 1963. He filed the applications for this ground vide letter dated 08.02.2019 and following is the context of the letter: - "The above referr....
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....sing officer in the assessment orders passed under section 143(3) read with section 153C of the Act for the aforesaid assessment years. Hence, this may be considered as information furnished. 2. The petitioner, if aggrieved by this order may prefer an appeal under section 19(1) of the Right to Information Act, 2005, before the Appellate Authority, being the Addl. Commissioner of Income-tax, Central Range-1, Mumbai having office address at: Room No 901, 9th Floor, Old CGO Annexe Building M.K. road, Marine Lines, Mubai-400 020 3. The application received under section 6(3) of the Right to Information Act, 2005 stands disposed off accordingly within the stipulated time frame mandated under the relevant Act." 6. From this it is clear that no satisfaction whatsoever is recorded by the AO. This issue has been considered by the Hon'ble Supreme Court in the case of CIT vs. Calcutta Knitwears (2014) 362 ITR 673 (SC). 7. We find that Hon'ble Supreme Court in the case of Calcutta Knitwears (supra) has held that it is clear from the provisions of section 153C of the Act that where the AO of the person searched is satisfied that any mo....
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....2-5 1) has laid down that for the purpose of Section 158BD of the Act, recording of a satisfaction note is a prerequisite and the satisfaction note must be prepared by the AO before he transmits the record to the other AU who has jurisdiction over such other person u/s 15813D. The Hon'ble Court held that "the satisfaction note could be prepared at any of the following stages: (a) at the time of or along with the initiation of proceedings against the searched person under Sec/ion 158BC of/he Act; or (b) in the course of the assessment proceedings under section 158BC of the Act; or (c) immediately after the assessment proceedings are completed under section 158BC of the Act of the searched person." 3. Several High Courts have held that the provisions of section 153C of the Act are substantially similar/pari-materia to the provisions of section 158BD of the Act and therefore, the above guidelines of the Hon'ble SC, apply to proceedings u/s 153C of the IT Act, for the purposes of assessment of income of other than the searched person. This view has been accepted by CBDT. 4. The guidelines of the Hon'ble Supreme Court as referred to i....
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....essing Officer having jurisdiction over such other person, also cannot be the basis to take any other view. As a matter of fact, the other Assessing Officer to whom the items are handed over, before issuing notice must himself be satisfied after due verification of the items received and the disclosures made by the other person in the returns for the relevant period already filed by the other person before him. For the same reason, we must reject the argument of the Department that the discretion of the Assessing Officer having jurisdiction will be impaired in any manner, if he were to hold a different view. Similarly, as there is no provision either express or implied (in the Act) to dispense with the requirement of satisfaction, if the Assessing Officer happens to be the same, as in this case, the argument of the Department must be negatived. 19. After receipt of the materials, the Assessing Officer having jurisdiction is expected to conduct enquiry and due verification of the relevant facts; before forming his prima facie satisfaction. The Assessing Officer having jurisdiction will be well within his rights to form an independent view before issuing notice to t....