The Principal Commissioner of Income Tax Central Circle -Ii v. Satkar Fincap Ltd

ORDER %

16.11.2016

¶1The questionoflaw urged in theseappealsis; Whether in thefacts and circumstancesof the case, the ITAT fell into error in holding that the satisfaction recorded by the AO of the respondent, was not in accordancewith Section 153C of the Income Tax Act, 1961.

¶2The search and seizure proceedings were conducted in the premisesofM/s MadhusudanBuildconP. Ltd. and few otherparties. In the course of the search, materialswere seized. The Assessmg Officer('AO') of the searchedpersons,coincidentally,also happens to be the AO of the presentassessee. On 08.09.2010the AO made the following noting; "SatisfactionNotefor issuingNoticeu/s 153CoftheIT. Act, 1961 in the case ofM/s. SatkarFincapLd. C-I05, Ramdutt Enclave, Uttam. Nagar, New Delhi, PAN : AAJCS6828Afor A. Y. 2003-04to 2008-09.

08.09.2010: In the case of Sh. B.K. Dhingra, Smt. PoonaifiDhingra, M/s MadhusudanBuildcon Pvt. Ltd., M/s: MayankTradersPvt. Ltd., M/s. Horizon Pvt., Ltd., search & seizure took place uls on

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0.2008. The undersignedis thejurisdictionalAO ofthese cases. Duringthe courseofsearch & seizure-documents/paperspage 1 to 31 ofAnnexure A-28seizedby PartyR-2, AnnexuresA-56, A-57 and A-58 seizedby party 04 arefound to belong to of M/s Satkar Fincap Ld., C-I05, RamduttEnclave, Uttam Nagar, New Delhi. I have examined the above mentioned documents/papersand provision of section 153C is invokeable in this case. As the undersignedis also the jurisdictionalAO of M/s. Satkar Fincap Ld.,C-I05, Ramdutt Enclave, Uttam Nagar, New Delhi, this satisfactionnote is recordedand is placed in thefile beforeissuingnotice U/S 153C. Sd/- ACIT, Central Circle -17, New Delhi",

¶3On the basis ofthe above note this 153C noticewas issued on the same day to the assessee and, subsequently, assessment was concludedon 31.12.2010, The assessee'sappeal was rejected. The contentionthat no satisfactionwas recordedtoo,was turneddown by the CommissionerofIncome Tax (Appeals). The assessees further appeals to the Income Tax AppellateTribunal (TTAT') succeeded. The ITAT quashedthe assessmentorderon the groundthattherewas no properrecordingof satisfactionby the AO to issue notice under Section 153A, that proceedings under Section 153C were to be undertaken or drawn up.

¶4This Court has consideredthis submission. Duringthe course ofthe hearingit was suggestedto the respondent/assesseethroughits counsel that having regard to the categoricalstatementin the note that: ''''Duringthe courseofsearch&seizuredocuments/paperspage 1 to 31 ofAnnexureA-28 seizedby PartyR-2, AnnexuresA-5'6, A-57 and A-58 seized by party 04 are found to belong to ofM/s Satkar FincapLd, C-I05,RamduttEnclave, UttamNagar, New Delhi.I have examinedthe above mentioneddocuments/papersand provisionof section 153C is invokeable in this case", the ITAT's findings and conclusion cannot be sustained.

¶5The learned counsel for the assessee had sought instructions and thereaftersubmittedthat havingregard to these facts the ITAT's findings with respect to no proper recording of satisfactionunder Section153C of the Act may be set aside and the matterbe remitted for consideration on the merits of the assessee's appeal.

¶6We, accordingly,set aside the ITAT's findings with regardto absenceof any satisfactionunder Section153C and as a consequence remitthe appealsfor considerationby the ITAT on merits. All rights and contentionsof the parties are kept open. Nothing stated in the presentordershallbe concludedas abindingexpressionon the merits of the case.

¶7The appealsareallowedin the aboveterms. S. RAVINDRA BHAT, J I NAJMIWAZIRI, J NOVEMBER 16, 2016/kk

$-11-16 * IN THE HIGH COURT OF DELHI AT NEW DELHI + ITA 82/2016 THE PRINCIPAL COMMISSIONER OF INCOME TAX CENTRALCIRCLE-II Appellant Through:Mr. DileepShivpuri,Mr. SanjayKumar and Mr. Vilcant A. Moheshwari, Advs. versus SATKARFINCAPLTD. Respondent Through: Mr. Kapil Goel and Mr. MukulGupta, Advs. + ITA 83/2016 THE PRINCIPALCOMMISSIONEROF INCOME ' TAX CENTRALCIRCLE-II Appellant Through:Mr. DileepShivpuri,Mr. SanjayKumar and Mr. Vilaant A. Moheshwari, Advs. versus SATKARFINCAPLTD; Respondent Through: Mr. KapilGoel and Mr. MukulGupta, Advs. + ITA 84/2016 PRINCIPALCOMMISSIONEROF INCOME-TAX ' CENTRALCIRCLE-11 Appellant Through:Mr. DileepShivpuri,Mr. SanjayKumar andMr. VikrantA. Moheshwari,Advs. ^ versus SATKARFINCAPLTD. Respondent Through: Mr. KapilGoeland Mr. MukulGupta, Advs. + ITA 85/2016 THE PRINCIPALCOMMISSIONEROF INCOMETAX CENTRAL CIRCLE -II Appellant Through; Mr. Dileep Shivpuri, Mr. SanjayKumar and Mr. Vikrant A. Moheshwari, Advs. versus SATKAR FINCAP LTD. Respondent Through: Mr. Kapil Goel and Mr. MukulGupta, Advs. + ITA 86/2016 THE PRINCIPAL COMMISSIONER OF INCOME TAX CENTRAL CIRCLE-II Appellant Through:Mr. Dileep Shivpuri,Mr. SanjayKumar and Mr. Vila:ant A. Moheshwari, Advs. versus SATKAR FINCAP LTD. Respondent Through; Mr. Kapil Goel andMr. MukulGupta, Advs. + ITA 87/2016 THE PRICNCIPAL COMMISSIONER OF INCOME TAX- CENTRAL CIRCLE-II Appellant Through:Mr. DileepShivpuri,Mr. SanjayKumar and Mr. Vikrant A. Moheshwari, Advs. . versus M/S SATKAR FINCAP LTD. Respondent Through: Mr. Kapil Goel and Mr. Mukul Gupta, Adys. - CORAM: HON'BLE MR. JUSTICE S. RAVINDRA BHAT HON'BLE MR. JUSTICE NAJMI WAZIRI