APF ESTATES PRIVATE LIMITED,HYDERABAD vs. ASST. COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE-3, HYDERABAD

We notice at the outset that the assessee's first and foremost grievance in ground Nos.3 to 5 challenge correctness of initiation of section 153C proceedings in furtherance to the department’s search action dt.11.03.2010. The sole issue that arises for our apt adjudication at this stage therefore is as to whether the learned lower authorities’ have recorded a proper apropos satisfaction u/s. 153C of the Act or not. We notice from a perusal of the corresponding assessment order(s) sheet at page 41 in the paper book that the Assessing Officer had nowhere made it clear as to whether the corresponding incriminating material found or seized during the course of search “belong” to the assessee or not. We make it clear that the impugned satisfaction had been recorded well before the legislative amendment in section 153C providing Finance Act, 2015 w.e.f. 1.6.2015. We further deem it appropriate to reproduce the Assessing Officer’s satisfaction note as under :

Faced with this situation and on account of the fact that no rebuttal to the foregoing clinching satisfaction note has come from the Revenue side, we adopt stricter instruction as per hon'ble apex court larger bench decision in Commissioner of Customs Vs. Dilip Kumar & Co. (2018) 9 SCC 1 (SC) and quash the impugned assessment framed u/s. 153C of the Act. All other pleadings on merits are rendered academic.