The recent legal case under discussion revolves around the thorough examination of whether the Assessing Officer complied with the provisions of Section 153C of the Income Tax Act. The court’s scrutiny of this compliance is vital as it sets a precedent for future tax-related proceedings. Let’s explore the nuances of the court’s legal analysis in this complex yet significant aspect of tax law.
Facts
- Civil Appeals arising from Special Leave Petition Nos. 8449-8450/2017 and Review Petition No. 16/2017 for Assessment Year 2008-09 are being considered collectively.
- During a search at the residence of Shri Ved Prakash Bharti, a Director in M/s Super Mall (P) Limited, a pen drive was found and seized from a vehicle parked in front of his residence on 8/9.04.2010.
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Issue
- The main issue for consideration is whether there is compliance with the provisions of Section 153C of the Act by the Assessing Officer.
- The question is whether all conditions required to be fulfilled before initiating proceedings under Section 153C of the Act have been satisfied.
- This is the central focus of the case at hand.
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Analysis
- The Assessing Officer must be satisfied that the documents seized belong to a person other than the searched person before issuing notice under Section 153C of the Act.
- The satisfaction note must clearly state that the seized documents belong to the other person (the assessee) and not the searched person.
- The High Court’s decision that the requirements of Section 153C have been fulfilled based on the satisfaction note is justified.
- In cases where the Assessing Officer of the searched person is the same as the Assessing Officer of the other person, only one satisfaction note is required.
- The High Court emphasized the importance of compliance with Section 153C and the CBDT Circular before initiating proceedings under the Act.
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Case Title: M/S. SUPER MALLS PRIVATE LIMITED. Vs. PRINCIPAL COMMISSIONER OF INCOME TAX 8 (2020 INSC 277)
Case Number: C.A. No.-002006-002007 / 2020
