What is Commissioner of Income Tax v. Mechmen authority for?

For initiating proceedings under Section 153C against a person other than the one searched, the Assessing Officer (AO) must mandatorily record satisfaction that seized assets/documents belong to that other person. This satisfaction is a jurisdictional prerequisite, even if the AO for both the searched person and the other person is the same.

How many judgments cite Commissioner of Income Tax v. Mechmen?

129 judgments on BharatTax cite Commissioner of Income Tax v. Mechmen (60 Taxmann.com 484), spanning 2015 to 2025.

Which sections of the Income Tax Act does Commissioner of Income Tax v. Mechmen come up under?

It is most often cited in judgments turning on Section 153C, Section 143(3), Section 153A, Section 132, Section 147, Section 148.

Commissioner of Income Tax v. Mechmen (60 Taxmann.com 484)

M/S Ind Sing Developers Private Limited, Bangalore vs. DCIT, Bangalore

In the result, the appeal filed by the assessee is allowed

ITA 107/BANG/2012[2005-06]Status: DisposedITAT Bangalore02 Mar 2022AY 2005-06

Bench: Shri George George K, Jm & Ms.Padmavathy S, Jm

For Appellant: S/Sri. G.S.Prashanth, CA and Narendra Sharma, AdvocateFor Respondent: Smt.Priyadarshini Besaganni, JCIT-DR

Section 132Section 143(3)Section 153ASection 40

…n ITA No.322/2018 (judgment dated 29.09.2021) (iii) CIT v. Kabur Chawla reported in 380 ITR 537 (Delhi) (iv) PCIT v. Ms.Lata Jain 384 ITR 543 (Delhi) (v) PCIT v. Devangi Alias Rupa 394 ITR 184 (Guj.) M/s.Ind Sing Developers Private Limited (vi) CIT v. Mechmen 380 ITR 591 (MP) (vii) CIT v. RRJ SEcuriites 380 ITR 612 (Delhi) (viii) CIT v. Ramesh Kumar 338 ITR 126 (P&H) (ix) CIT v. Lata J.Chandrashekar (HUF) 338 ITR 61 (Mad.) 5.1 The learned Standing Counsel appearing for the assessee submitted that as regards the nature of addition of sale of land and relinquishment of Rights, the same has been rightly taxed under…

DCIT Cen Cir-1(2), Mumbai vs. Jac Air Services P. Ltd, Mumbai

ITA 7045/MUM/2017[2011-12]Status: DisposedITAT Mumbai03 Sept 2019AY 2011-12

Bench: Sri Mahavir Singh, Jm & Sri Rajesh Kumar, Am Aayakr Apila Sam./ Ita No. 7042/Mum/2017 (Inaqa-Arna Baya- / Assessment Year 2008-09)

For Appellant: Shir Sushilkumar Poddar, CIT DRFor Respondent: Shri Satish Modi, AR

Section 132Section 143(3)Section 153CSection 292C

…e, the AO is required to record his satisfaction that the assets / documents seized belonged to a person i.e. the assessee, other than the searched person. This view is finally settled by Hon’ble Madhya Pradesh High Court in the case of CIT Vs. Mechmen (2016) 380 ITR 591 (MP) wherein the view is expressed in the following manner: - “18. The concomitant of this conclusion, is that, the legal position as applicable to Section 158BD regarding satisfaction in the first instance of the first Assessing Officer forwarding the items to the Assessing Officer having jurisdiction; and in the second instance of the Assessin…

DCIT Cen Cir-1(2), Mumbai vs. Jac Air Services P. Ltd, Mumbai

ITA 7044/MUM/2017[2010-11]Status: DisposedITAT Mumbai03 Sept 2019AY 2010-11

Bench: Sri Mahavir Singh, Jm & Sri Rajesh Kumar, Am Aayakr Apila Sam./ Ita No. 7042/Mum/2017 (Inaqa-Arna Baya- / Assessment Year 2008-09)

For Appellant: Shir Sushilkumar Poddar, CIT DRFor Respondent: Shri Satish Modi, AR

Section 132Section 143(3)Section 153CSection 292C

…e, the AO is required to record his satisfaction that the assets / documents seized belonged to a person i.e. the assessee, other than the searched person. This view is finally settled by Hon’ble Madhya Pradesh High Court in the case of CIT Vs. Mechmen (2016) 380 ITR 591 (MP) wherein the view is expressed in the following manner: - “18. The concomitant of this conclusion, is that, the legal position as applicable to Section 158BD regarding satisfaction in the first instance of the first Assessing Officer forwarding the items to the Assessing Officer having jurisdiction; and in the second instance of the Assessin…

DCIT Cen Cir-1(2), Mumbai vs. Jac Air Services P. Ltd, Mumbai

ITA 7043/MUM/2017[2009-10]Status: DisposedITAT Mumbai03 Sept 2019AY 2009-10

Bench: Sri Mahavir Singh, Jm & Sri Rajesh Kumar, Am Aayakr Apila Sam./ Ita No. 7042/Mum/2017 (Inaqa-Arna Baya- / Assessment Year 2008-09)

For Appellant: Shir Sushilkumar Poddar, CIT DRFor Respondent: Shri Satish Modi, AR

Section 132Section 143(3)Section 153CSection 292C

…e, the AO is required to record his satisfaction that the assets / documents seized belonged to a person i.e. the assessee, other than the searched person. This view is finally settled by Hon’ble Madhya Pradesh High Court in the case of CIT Vs. Mechmen (2016) 380 ITR 591 (MP) wherein the view is expressed in the following manner: - “18. The concomitant of this conclusion, is that, the legal position as applicable to Section 158BD regarding satisfaction in the first instance of the first Assessing Officer forwarding the items to the Assessing Officer having jurisdiction; and in the second instance of the Assessin…

DCIT Cen Cir-1(2), Mumbai vs. Jac Air Services P. Ltd, Mumbai

ITA 7042/MUM/2017[2008-09]Status: DisposedITAT Mumbai03 Sept 2019AY 2008-09

Bench: Sri Mahavir Singh, Jm & Sri Rajesh Kumar, Am Aayakr Apila Sam./ Ita No. 7042/Mum/2017 (Inaqa-Arna Baya- / Assessment Year 2008-09)

For Appellant: Shir Sushilkumar Poddar, CIT DRFor Respondent: Shri Satish Modi, AR

Section 132Section 143(3)Section 153CSection 292C

…e, the AO is required to record his satisfaction that the assets / documents seized belonged to a person i.e. the assessee, other than the searched person. This view is finally settled by Hon’ble Madhya Pradesh High Court in the case of CIT Vs. Mechmen (2016) 380 ITR 591 (MP) wherein the view is expressed in the following manner: - “18. The concomitant of this conclusion, is that, the legal position as applicable to Section 158BD regarding satisfaction in the first instance of the first Assessing Officer forwarding the items to the Assessing Officer having jurisdiction; and in the second instance of the Assessin…

Smt Sadhna Vohra, Bhopal vs. ITO 1(3), Bhopal

In the result, the appeal filed by the assessee is

ITA 735/IND/2018[2010-11]Status: DisposedITAT Indore18 Jul 2019AY 2010-11

Bench: Shri Kul Bharatassessment Year: 2010-11

Section 131Section 132Section 153CSection 69

…[ITA 735/Ind/2018] [Smt. Sadhna Vohra, Bhopal] आयकर अपील"य अ"धकरण, इ"दौर "यायपीठ, इ"दौर IN THE INCOME TAX APPELLATE TRIBUNAL INDORE “SMC” BENCH, INDORE BEFORE SHRI KUL BHARAT, JUDICIAL MEMBER Assessment Year: 2010-11 Smt. Sadhna Vohra ITO-1(3) 12, Comfort Garden, Bhopal बनाम/ Chuna Bhatti Vs. Bhopalk (Appellant) (Revenue ) P.A. No.ABRPV6114G Appellant by Shri A. Goyal & Shri N.D. Patwa, A.Rs Respondent by Shri R.P. Mourya, DR Date of Hearing: 27.06.2019 Date of Pronouncement: 18.07.2019 आदेश / O R D E R PER KUL BHARAT, J.M: This appeal by the assessee pertaining to the assessment year 2010-11 against the o…

Shri Manuel Meda, Bhopal vs. The ACIT-2(1), Bhopal

In the result, Cross Objection by the assessee in CO

ITA 196/IND/2016[2007-08]Status: DisposedITAT Indore18 Jul 2019AY 2007-08

Bench: Shri Kul Bharat & Shri Manish Boradit(Ss)A No.89/Ind/2016 Assessment Year: 2006-07 Acit 1(1) M/S. L.N. Gupta Mathur Vaishya बनाम/ Charitable Trust Bhopal Vs. E-1/55, Arera Colony, Bhopal (Revenue) (Respondent) Pan: Aaatl4820E

Section 11(2)Section 12Section 12ASection 132Section 153CSection 234B

…roceedings carried out u/s 153C r.w.s. 143(3) of the Act. 10. At the outset, Ld. counsel for the assessee submitted that the issue is squarely covered in favour of the assessee by the judgment of Hon'ble Jurisdictional High Court in the case of CIT v. Mechmen 380 ITR 591 (MP) wherein the Hon'ble Court has held that satisfaction is required to be made by the assessing officer of the searched person as well as the assessing officer of the person other than the searched person even when the assessing officer is common for both. Ld. counsel for the assessee further submitted that no satisfaction note of the assessing…

Dhirajmal S.Madhavani, Mumbai vs. DCIT Cen Cir 2(2), Mumbai

The appeal of the assessee is partly allowed

ITA 487/MUM/2017[2014-15]Status: DisposedITAT Mumbai23 Apr 2019AY 2014-15

Bench: Shri Rajesh Kumar & Shri Ram Lal Negiassessment Year: 2014-15

For Appellant: Shri Nishit Gandhi, A.RFor Respondent: Shri D.G. Pansari, D.R

Section 132(4)Section 143Section 143(3)Section 153CSection 153D

…In absence of the satisfaction note 5 Mr. Dhirajmal S. Madhavani the order passed u/s 143(3) r.w.s. 153C of the Act is void and has to be quashed. In defence of his arguments the ld AR placed reliance on the following decisions:- a) CIT Vs Mechmen LLC (2016) 380 ITR 591 (MP) b) CIT Vs. Lavanya Land Ltd (2017) 397 ITR 2469(Bom) The AR also raised several other propositions challenging the validity of the assessment order such as that pre-requisite for making the addition in the hands of the assessee u/s 153C is that the said asset must belong to the assessee and AO of the search person must also records satisfac…

Shri Ajay Gpta (HUF), Mumbai vs. ACIT Cent. Cir. 43, Mumbai

In the result, all the three appeals of assessee are allowed and that of the Revenue are dismissed

ITA 2149/MUM/2016[2008-09]Status: DisposedITAT Mumbai30 Jan 2019AY 2008-09

Bench: Sri Mahavir Singh, Jm & Sri Rajesh Kumar, Am

For Appellant: Shri RC Jain, ARFor Respondent: Shri BB Rajendra Prasad, DR

Section 132Section 143(3)Section 153C

…e, the AO is required to record his satisfaction that the assets / documents seized belonged to a person i.e. the assessee, other than the searched person. This view is finally settled by Hon’ble Madhya Pradesh High Court in the case of CIT Vs. Mechmen (2016) 380 ITR 591 (MP) wherein the view is expressed in the following manner :- “18. The concomitant of this conclusion, is that, the legal position as applicable to Section 158BD regarding satisfaction in the first instance of the first Assessing Officer forwarding the items to the Assessing Officer having jurisdiction; and in the second instance of the ITAs No.…

Shri Ajay Gupta (HUF), Mumbai vs. ACIT Cent. Cir. 43, Mumbai

In the result, all the three appeals of assessee are allowed and that of the Revenue are dismissed

ITA 2145/MUM/2016[2009-10]Status: DisposedITAT Mumbai30 Jan 2019AY 2009-10

Bench: Sri Mahavir Singh, Jm & Sri Rajesh Kumar, Am

For Appellant: Shri RC Jain, ARFor Respondent: Shri BB Rajendra Prasad, DR

Section 132Section 143(3)Section 153C

…e, the AO is required to record his satisfaction that the assets / documents seized belonged to a person i.e. the assessee, other than the searched person. This view is finally settled by Hon’ble Madhya Pradesh High Court in the case of CIT Vs. Mechmen (2016) 380 ITR 591 (MP) wherein the view is expressed in the following manner :- “18. The concomitant of this conclusion, is that, the legal position as applicable to Section 158BD regarding satisfaction in the first instance of the first Assessing Officer forwarding the items to the Assessing Officer having jurisdiction; and in the second instance of the ITAs No.…

Shri Ajay Gupta (HUF), Mumbai vs. ACIT Cent. Cir. 43, Mumbai

In the result, all the three appeals of assessee are allowed and that of the Revenue are dismissed

ITA 2147/MUM/2016[2010-11]Status: DisposedITAT Mumbai28 Jan 2019AY 2010-11

Bench: Sri Mahavir Singh, Jm & Sri Rajesh Kumar, Am

For Appellant: Shri RC Jain, ARFor Respondent: Shri BB Rajendra Prasad, DR

Section 132Section 143(3)Section 153C

…e, the AO is required to record his satisfaction that the assets / documents seized belonged to a person i.e. the assessee, other than the searched person. This view is finally settled by Hon’ble Madhya Pradesh High Court in the case of CIT Vs. Mechmen (2016) 380 ITR 591 (MP) wherein the view is expressed in the following manner :- “18. The concomitant of this conclusion, is that, the legal position as applicable to Section 158BD regarding satisfaction in the first instance of the first Assessing Officer forwarding the items to the Assessing Officer having jurisdiction; and in the second instance of the ITAs No.…

Shri Pankaj Makhija, Bhopal vs. The DCIT (Central), Bhopal

In the result, the appeals filed by the assessee are

ITA 678/IND/2016[2012-13]Status: DisposedITAT Indore23 Jan 2019AY 2012-13

Bench: Shri Kul Bharat & Shri Manish Borad

Section 50CSection 69C

…That the appellant prays leave of this Hon'ble Tribunal to urge the following additional ground in its appeal: A. Whether the order passed by the Assessing Officer is contrary to the decision of the jurisdictional Hon'ble Court in CIT Vs. M/s. Mechmen (2016) 380 ITR 591 (MP) in which the Hon'ble MP H.C. has categorically held that u/s 153C the proper satisfaction has to be recorded by the Assessing Officer of the searched person before assuming jurisdiction over the assessee & failure to record satisfaction renders the assessment order null and void? [IT(SS)A Nos.109, 110 & 678 /Ind/2016,] [Shri Pankaj MaKhija,…

M/S. Avalanche Reality Pvt. Ltd., Indore vs. The ACIT3(1), Indore

In the result, the appeal filed by the assessee is

ITA 535/IND/2013[2008-09]Status: DisposedITAT Indore03 Dec 2018AY 2008-09

Bench: Shri Kul Bharat & Shri Manish Boradassessment Year: 2008-09

Section 132Section 143(3)Section 153CSection 40A(3)

…[ITA No.535/Ind/2013] [M/s. Avalanche Reality, Indore] आयकर अपील"य अ"धकरण, इ"दौर "यायपीठ, इ"दौर IN THE INCOME TAX APPELLATE TRIBUNAL INDORE BENCH, INDORE BEFORE SHRI KUL BHARAT, JUDICIAL MEMBER AND SHRI MANISH BORAD, ACCOUNTANT MEMBER Assessment Year: 2008-09 M/s. Avalanche Reality Pvt. Ltd. ACIT-3(1) 205, Satya Geeta Apartment, Indore बनाम/ 90/47, Sneh Nagar, Main Road Vs. Indore (Appellant) (Revenue ) P.A. No.AAGCA2183B Appellant by Shri Sumit Nema, Sr.Adv. & Shri Ayush Gupta, Adv. Respondent by Shri Lal Chand, DR Date of Hearing: 11.10.2018 Date of Pronouncement: 04.12.2018 आदेश / O R D E R PER KUL BHAR…

Crystal Plywood Pvt. Ltd., Kolhapur vs. Income-Tax Officer

ITA 1737/PUN/2016[2006-07]Status: DisposedITAT Pune14 Nov 2018AY 2006-07

Bench: Ms. Sushma Chowla, Jm & Shri Anil Chaturvedi, Am आयकर अपीऱ सं. / Ita No.1737/Pun/2016 यििाारण वषा / Assessment Year : 2006-07 Crystal Plywood Pvt. Ltd., 1220/47, E-Ward, Rajarampuri, First Lane, अऩीऱाथी/Appellant Kolhapur – 416001 …. Pan: Aaacc7874M Vs. The Income Tax Officer (Central), …. प्रत्यथी / Respondent Kolhapur

For Appellant: Shri Nikhil PathakFor Respondent: Shri Avadesh Kumar

Section 132Section 139(1)Section 143(3)Section 153C

…आयकर अपीऱीय अधिकरण पुणे न्यायपीठ “बी” पुणे में IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCH “B”, PUNE सुश्री सुषमा चावऱा, न्याययक सदस्य एवं श्री अयिऱ चतुवेदी, ऱेखा सदस्य के समक्ष BEFORE MS. SUSHMA CHOWLA, JM AND SHRI ANIL CHATURVEDI, AM आयकर अपीऱ सं. / ITA No.1737/PUN/2016 यििाारण वषा / Assessment Year : 2006-07 Crystal Plywood Pvt. Ltd., 1220/47, E-Ward, Rajarampuri, First Lane, अऩीऱाथी/Appellant Kolhapur – 416001 …. PAN: AAACC7874M Vs. The Income Tax Officer (Central), …. प्रत्यथी / Respondent Kolhapur अऩीऱाथी की ओर से / Appellant by : Shri Nikhil Pathak प्रत्यथी की ओर से / Respondent by : Shri Avadesh Kum…

DCIT CC 6(1), Mumbai vs. Salasar Dwellers P.Ltd, Mumbai

In the result, the appeal of Revenue is dismissed and that the CO of the assessee is allowed

ITA 5707/MUM/2015[2008-09]Status: DisposedITAT Mumbai28 Sept 2018AY 2008-09

Bench: Sri Mahavir Singh, Jm & Sri Rajesh Kumar, Am

For Appellant: Shri DG Pansari, DRFor Respondent: Shri Dharmesh Shah &

Section 132Section 143(3)Section 153C

…to record his satisfaction that the assets / documents seized belonged to a person i.e. the assessee, other than the searched person. This view is finally settled by Hon’ble Madhya Pradesh High Court in the case of CIT Vs. CO No. 257/Mum/2017 Mechmen (2016) 380 ITR 591 (MP) wherein the view is expressed in the following manner :- “18. The concomitant of this conclusion, is that, the legal position as applicable to Section 158BD regarding satisfaction in the first instance of the first Assessing Officer forwarding the items to the Assessing Officer having jurisdiction; and in the second instance of the Assessin…