TaxTMI 
TaxTMI 
2025 (12) TMI 1810
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....f Income Tax (Appeals)-30 [in short, the "CIT(A)"], Delhi's order dated 20.12.2024 passed in case no. 30/10740/2019-20, involving proceedings under section 153C r.w.s. 143(3) of the Income-tax Act, 1961 (hereinafter referred to as 'the Act'). Heard both the parties. Case files perused. 2. It emerges during the course of hearing that there arises the first and foremost legal issue of validity of the impugned section 153C proceedings/assessments framed on 26th March, 2023 itself between the parties; for want of a valid satisfaction recorded by the learned lower authorities. There is hardly any dispute that the learned Assessing Officer of the assessee (who happens to be a person other than the searched party) had set into the motion sec....
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....ts in real estate properties in prime cities to the tune of crores of rupees. The personal staff/employees/associates of entry operators had been made dummy directors/partners of these shell entities and all bank accounts were managed and controlled by these entry operators. Statements of such entry operators, their dummy partners/employees, the cash handlers as well as the covered beneficiaries have also been recorded clearly validating the entire modus operandi. 3. Search and seizure operation u/s 133 of the Income Tax Act, 1961 dated 26.10.2020 by Unit-5, Delhi lead to seizure of approx. Rs 62 Crores of cash from the premises of beneficiaries who have benefitted from entry operator. 4. Apart from issuance of bogus billi....
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....ction of TDS on cash withdrawal, Sanjay Jain used to withdraw cash through variona benami firm of his associates. However, since the applicability of TDS of 0.1% u/s 1947, the charges for arranging such cash increased from 30 paisa to 100 paisa. The difference between billing amount and the bank credit entries is on account of such RTGS to cash entries. 5. During the course of search dated 26.10.2030 on the entry operator, Mr. Sanjay Jain, 2 sets of books of tally were found and seized from the office premise of Sh. Sanjay Jain i.a. 87, First Floor, Dharamvir Mann Marg, Sabri Market, Hari Nagar Ashram, New Delhi, which were annexurized as Annexure-A31. The set of tally data which contains the receipt and expenditure in cas....
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....nt in books of accounts and their effect with respect to taxability on the assessee are required to be examined in this case. 9. In view of the above, I have reasons to believe that the assessee may he issued notice u/s 153C of the IT Act 1961." 3. That being the case, learned CIT(DR) strongly supports the above satisfaction note inter alia that the same had been properly recorded in light of the relevant incriminating material found/seized during the course of search dated 26th October, 2020 which led the Assessing Officer of the said searched party to satisfy himself that the same belonged or pertained or related to the assessee; as the case may be, leading to the Assessing Officer's satisfaction note finally culminating in th....