INCOME TAX ACT, 1961

Section 153C

Search and seizure - Assessment under section 153C - Single satisfaction note by AO of searched person -

Short ground on which it was held by Tribunal that proceeding was not validly initiated under section 153C was that there was no satisfaction note recorded by AO of searched person. In present case, AO of searched person and other person (Assessee) was same. Held: In similar circumstances, Court had in case of Ganpati Fincap Services (P) Ltd., Shushre Securities (P) Ltd., Shrey Infradevelopers (P) Ltd., v. CIT (2017) 395 ITR 692 (Del-HC) : 2017 TaxPub(DT) 1801 (Del-HC) held that where AO of searched person and other person is same, a satisfaction note qua other person has to be recorded by AO of searched person prior to initiation of proceedings against other person. However, there do not have to be two separate satisfaction notes prepared by AO of searched person even where he is also AO of other person. In such event, AO need to make only one satisfaction note. That satisfaction note is qua other person. Further, it is sufficient that such satisfaction note is placed in file of other person by AO in his capacity as AO of such other person.

Ganpati Fincap Services (P) Ltd., Shushre Securities (P) Ltd., Shrey Infradevelopers (P) Ltd. v. CIT (2017) 395 ITR 692 (Del-HC) : 2017 TaxPub(DT) 1801 (Del-HC).