TaxTMI 
TaxTMI 
2026 (5) TMI 945
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....IT(A) in deleting the addition made u/s. 69A of the Act in respect of jewellery seized and whereas the cross objection is filed by the assessee challenging the order of the Ld. CIT(A) on the ground that the common satisfaction note recorded by the AO for all the seven years without correlating the seized materials to a particular assessment year in question as defective and void-ab-initio in terms of provision of section 153C of the Act. 3. The Ld. Counsel for the assessee referring to ground Nos. 7 and 8 of the grounds of cross objection and the copy of satisfaction note recorded by the AO u/s. 153C of the Act, submitted that a common satisfaction note was recorded for the A.Ys 2014-15 to 2020-21. Referring to para-3 of the satisfaction....
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....ons run by the assessee, did not establish correlation document wise with assessment year in question, notice issued u/s. 153C of the Act had rightly been quashed and set aside by the Hon'ble Tribunal and rightly affirmed by the Hon'ble High Court. 5. The Ld. Counsel for the assessee submitted that in the case of the assessee also the jewellery which was listed out in the satisfaction note found from various lockers were not correlated with assessment year wise and not established by the AO to which assessment year it has a bearing on determination of total income. Therefore, in absence of correlation of amount i.e. seized jewellery with the assessment years, the common satisfaction note recorded by the AO for the A.Y. 2014-15 to 2020-21....
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.... "15. At the outset, it needs to be highlighted that the assessment order passed by the AO on August 7, 2008 covered eight Assessment Years ie. Assessment Year 1999-2000 to Assessment Year 2006-07. As noted above, insofar as Assessment Year 1999-2000 is concerned, same was covered under Section 147 of the Act which means in respect of that year, there were re-assessment proceedings. Insofar as Assessment Year 2006-07 is concerned, it was fresh assessment under Section 143(3) of the Act. Thus, insofar as assessment under Section 153C read with Section 143(3) of the Act is concerned, it was in respect of Assessment Years 2000-01 to 2005-06. Out of that, present appeals relate to four Assessment Years, namely, 2000-01 to 2003-04 covered....
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....as seized had to pertain to the Assessment Years in question and it is an undisputed fact that the documents which were seized did not establish any co-relation, document-wise, with these four Assessment Years. Since this requirement under Section 153C of the Act is essential for assessment under that provision, it becomes a jurisdictional fact. We find this reasoning to be logical and valid, having regard to the provisions of Section 153C of the Act, Para 9 of the order of the ITAT reveals that the ITAT had scanned through the Satisfaction Note and the material which was disclosed therein was culled out and it showed that the same belongs to Assessment Year 2004-05 or thereafter. After taking note of the material in para 9 of the order, th....
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....ote u/s. 153C of the Act did not correlate the seized materials / jewellery with that of the assessment years in question establishing the fact of having a bearing on determination of total income of a relevant assessment year especially when the satisfaction note was recorded for several assessment years i.e., for the A.Y.2014-15 to 2020. 11. Therefore, the ratio of the decision of the Hon'ble Apex Court (supra) squarely applies to the facts of the assessee's case. Thus, respectfully following the decision of the Apex Court in the case of CIT Vs. Sinhgad Technical Education Society (supra) we hold that the notice issued u/s. 153C of the Act based on the satisfaction note recorded by the AO is bad in law and consequently the assessment f....