JCIT (OSD) CENTRAL CIRCLE-I, NOIDA vs. MINAR HOTELS PVT LTD, NEW DELHI

The present appeal has been filed by the Revenue against the order of ld. CIT(A)-IV, Kanpur dated 04.01.2019.

The only issue to be adjudicated by us is whether the assessment can be held to be valid in the absence of any material found and seized during the search.

Heard the arguments of both the parties and perused the material available on record.

It is a settled position of law that notice u/s 153C of the Income Tax Act, 1961 is invalid ab-initio in absence of satisfaction note and incriminating seized material. From the plain reading of language of Section 153C of the Act and various

In the instant case, admittedly, additions are not based on any incriminating document found and seized as a result of search. In fact, no seized or incriminating document is mentioned in the satisfaction recorded by Assessing Officer for the Assessment Year involved in the appeal. Further, the AO has not recorded the satisfaction for these relevant Assessment Year as envisaged u/s 153C of the Act.

In view of these facts and respectfully following the judgment of the Hon’ble Supreme Court in the case of Sinhgad Technical Educational Society, it is concluded that notice u/s 153C issued by the AO need to be treated as invalid and legally not sustainable and quashed, resulting in quashing of the assessment thus framed.

In the result, the assessment framed u/s 153C is void ab initio and hence the appeal of the revenue is liable to be dismissed.