TaxTMI 
TaxTMI 
2025 (9) TMI 279
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.... of Annexure A-8, Party OS-1 as mentioned in the assessment order were allegedly found which were said to be "belonging" to the assessee and based upon these documents, the jurisdiction was assumed by recording 'Satisfaction Note' dt. 7.6.2017 and by issuing notice u/s 153C of the Act, on 13.06.2017. 2.1. The facts of the case, material on record and arguments of the appellant have been gone through in detail. The case of revenue is that the appellant is a group company of M/s Orient Craft Ltd. having common directors and shareholders. M/s Orient Craft Ltd. (hereafter referred as M/s Orient) was having land measuring 40 kanal and 7 marlas at village Khandsa, Gurgaon, appearing as investment in the balance sheet. M/s Orient applied to the Town and Country Planning Department, Govt, of Haryana for grant of permission for change of land used in order to develop Cyber Project over the said land. M/s Orient and the appellant entered into a collaboration agreement on 30.09.2006 for the development of the said project upon the said land. As per the said agreement, entire cost of development for the project was to be borne by the appellant and the appellant was to receive 85% share out ....
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....develop the said project as per the specifications laid in the license /permissions obtained from Govt, of Haryana at its own cost and the appellant was entitled to receive 85% of space as consideration out of the said project after its execution as its share. In order to undertake the development of the said project and to discharge its obligation, the appellant subsequently entered into another agreement with M/s Bestech wherein the entire development would be taken by M/s Bestech and as consideration M/s Bestech was to receive 55% as its share out of the said project after execution leaving 30% share in favour of the appellant and 15% in favour of M/s Orient. 2.5 Thus resultantly out of the above 2 agreements entered during FY 2006- 07, the appellant was to execute the said agreements entered with M/s Orient and M/s Bestech separately and as a result was entitled to receive 30% of share out of the constructed and unconstructed areas out of the project with proportionate rights in the land underneath the entire project. However, the appellant was entitled to receive the said share subject to completion of the said project and after obtaining necessary sanctions and clearances ....
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....note/handing over the books would be the date of search. On that basis, date of satisfaction note is 7.6.2017 and hence, impugned AY 2014-15 becomes unabated. Thus it was quite essential that 'satisfaction note' should be a self contained document about the incriminating material belonging to assessee for the relevant years found in the search leading to assumption of jurisdiction. 5. In aforesaid context it will be appropriate to reproduce the body of 'satisfaction note' as reproduced in the impugned order of ld. CIT(A) here below:- "Reasons/satisfaction note for taking up the case the case of M/s Olympus Realtors (P) Ltd. u/s 153C of the Income Tax Act, 1961. By virtue of the authorization of the Principal Director of Income Tax (Investigation), Chandigarh, a search & seizure operation u/s 132(1) of the Act was carried out on 29.04.2015 at the residential/business premises of the persons associated with M/s Orient Craft group. During the course of search proceedings, documents/records related to M/s Olympus Realtors (P) Ltd. were found at the premises F-8, Okhla Industrial Area, Phase-1, New Delhi. As per seized documents from the premises of M/s Orient....
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....g that material seized during the search belongs or pertains to a assessee and is likely to have a bearing on assessee's income. To be more precise as to how, in satisfaction note AO concluded "During the search operation undisclosed income to the tune of Rs. 33 crores has been detected in the case of M/s Olympus Realtors (P) Ltd. resulting into concealment of income." 7. It can be further observed that the said 'Satisfaction Note' is quite vague and lacks precision as it does not mention any specific seized document belonging/relating/pertaining to assessee and for the year under appeal. Then 'Satisfaction Note' mentions that the vaguely referred seized documents were found from F 8, Okhla Industrial Area, Phase I New Delhi whereas the Assessment Order mentions that seized documents were found from 7D, Maruti Industrial Area, Sector 18, Gurgaon which means that the documents on the basis of which 'Satisfaction Note' was prepared were different than the documents based on which impugned addition was made. 8. In this context ld. AR has successfully demonstrated before us that even seized documents (page 93 to 116 of Annexure A-8, Party OS-1) (PB 30-53) as referred by ld.AO in ....