TaxTMI 
TaxTMI 
2026 (4) TMI 40
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....sment years and filed twice additional grounds which are all in the nature of the legal ground. 2. In the additional ground filed at the first time, the assessee had raised a legal plea that the AO had erred in making additions or disallowances when there are no incriminating documents seized at the time of search. 3. In the additional ground filed at the second time, the assessee had raised a legal plea that, whether the AO can issue a notice u/s. 153C of the Act based on the common satisfaction note recorded for the A.Ys. 2015-16 to 2020-21. Another ground raised by the assessee is that whether the assessing officer is correct in not furnishing the copy of the satisfaction note based on which notices u/s. 153C were issued for the A.....
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....eated a sum of Rs. 6,00,000/- as not supported by any source and therefore treated the said Rs. 6,00,000/- as unexplained money u/s. 69 of the Act. Except the sale agreement, no other records were found and seized by the authorities and even the major part of the sale consideration as per the agreement was paid through the banking channels except the sum of Rs. 6,00,000/- which was paid during the A.Y. 2015-16. Further, additions were made based on the bank account statements. Similarly, the salary income was added as income under the head salary and the bank interest was also added as income under the head "Income from Other Sources". Penalty proceedings were also initiated by the AO. 6. As against the said order, the assessee filed an ....
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....nting for making the assessment u/s. 153C of the Act and also pointed out that the AO had passed a common satisfaction note for the A.Ys. commencing from 2015-16 to 2020-21. The Ld.AR also submitted that the AO had failed to record year wise and specific satisfaction linking the seized documents or materials relevant to each A.Y. instead a blanket satisfaction note for all the years and therefore submitted that the subsequent proceedings based on the said common satisfaction note is bad in law. The Ld.AR also submitted that the AO had not specifically recorded the satisfaction in respect of each A.Ys. by connecting the incriminating materials seized and therefore without any incriminating materials, and without any separate satisfaction not....
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....ad relied on the judgment of the Hon'ble Jurisdictional High Court reported in 469 ITR 197 in the case of DCIT vs. Sunil Kumar Sharma. We have perused the documents filed by the assessee in which the recording of satisfaction u/s. 153C of the searched person has been recorded by the AO of the assessee. We have also perused the documents seized at the time of search which was mentioned as annexure - A to the above said notice. We have also perused the recording of reasons for the issue of notice u/s. 153C of the Act in which the AO had relied on the statement of the assessee for not having the source for the payment of cash of Rs. 6,00,000/- and, also the documents seized and in the said satisfaction note, the AO and the authorities had give....
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.... "53. Further, satisfaction note is required to be recorded under Section 153C of the IT Act for each Assessment Year and in the impugned proceedings, a consolidated satisfaction note has been recorded for different Assessment Years, which also vitiates the entire assessment proceedings. In view of all these findings, it is said that the appeals do not have any substance for seeking intervention as sought for by the appellant / Revenue." 13. The Division Bench judgment was challenged by the revenue before the Hon'ble Supreme Court and the Hon'ble Supreme Court had also affirmed the Division Bench judgment in the above referred SLP cited supra. Therefore as on today, the law has been laid down by the Hon'ble Jurisdictional High Court th....