TaxTMI 
TaxTMI 
2022 (4) TMI 28
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....s perused. 2. Coming to the Revenue's identical sole substantive grievance that the CIT(A) has erred in law and on facts in quashing the impugned assessment order for want of a valid satisfaction recorded u/s. 153C of the Act, we note that the corresponding lower appellate discussions to this effect reads as under: "4.0 The appellant has raised 13 grounds. While Ground Nos. 1 to 6 are against the order passed u/s. 143(3) r.w.s. 153C of the Act, on the grounds that it is erroneous, as the provisions of section 153Cwere invoked without recording satisfaction of the AO, the other grounds are general and consequential in nature, which do not require any separate adjudication. 5.0 The facts of the case, in brief are that....
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....e appeals against the order of the CIT(A) confirming the order of the AO under section 154 are also quashed as having no basis". .................................... assessing officer has erred in not recording any satisfaction with respect to issue of notice u/s. 153C of the Act which is a pre-condition to make any assessment u/s. 153C of the Act. ........................... We would like to submit that the assessing officer has recorded the following Para in the order sheet: Search & Seizure operations were conducted in the MBS Jewelers Pvt. Ltd. group of Cases on 11.03.2010. During the Course of search, books of accounts, documents & other loose sheets were found and seized. As per the seized documents, pages 18 to 23 o....
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....appellant as well as the observations of the AO in the impugned order. The copy of the order sheet recorded by the AO has also been called for, and it is seen that the reasons recorded in the case for issuing notice u/s. 153C are as under: " Search & Seizure operations were conducted in the MBS Jewellers Pvt. Ltd., group of cases on 11.03.2010. During the course of search, books of accounts, documents & other loose sheets were found and seized. As per the seized documents, pages 12/33 to 20/42 of Annexure A/MBS/04 relates to M/s. Gehna Projects Pvt. Ltd. proceedings u/s. 153C is initiated. Put up notices u/s. 153C & 142(1) of the IT Act." 5.3 From this noting, it is seen that the proceedings under section 153C are....
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....d during the course of search in the case of MBS Jewellers P. Ltd., and certain pages therein related to the assessee herein. There is no satisfaction recorded by the A.D. in the case of MBS Jewellers P. Ltd., that the income mentioned in the documents belongs to the assessee herein. The Hon'ble A.P. High Court in the case of CIT-III, Hyderabad vs. Shettys Pharmaceuticals & Biologicals Ltd., (supra) has held as under: "Held: It is clear from section 153C that firstly satisfaction has to be recorded by the Assessing Officer who conducted search, that any money, bullion, jewellery or other valuable article or thing or books of account or documents seized or requisitioned belongs or belong to a person other than the perso....
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....aw to be decided. [Para 7] The appeal was dismissed accordingly. [para 9]" Respectfully following the judgment of the jurisdictional High Court on similar set of facts, I have no hesitation in holding that the A.D. of the person searched has not recorded any satisfaction that the income relatable to the seized material belongs to the assessee herein. Therefore, the assessment is quashed". 6.0 It is evident from the above that the Assessing Officer has simply recorded that certain seized pages pertain to the appellant and hence notice u/s. 153C is to be issued. Nowhere there is a recording of satisfaction by the AO. The CBDT vide Circular No. 24/2015 dated 31/12/2015 has clearly stated that even when the AO of the ....