The taxpayer has filed the appeal towards the Income Tax Appellate Tribunal ( ITAT ), Visakhapatnam Bench, which ruled that the satisfaction is to be recorded by the Assessing Officer (AO), prior to the issue of a notice under section 153C of the Income Tax Act, 1961.
The aforesaid observation was made by the tribunal when appeals were filed before it by the assessee, against the order of the Commissioner of Income Tax (Appeals) -9, Hyderabad [the Ld. CIT(A)], in ITA Nos. 10482, 10483, 1048410490/CIT(A)-9/Hyd/2018-19, arising out of the order passed U/S 153C.
The taxpayer has raised the issue that the assumption of the jurisdiction via AO was not good in law for the cause that the notice provided u/s. 153C is not in conformity with the requirements of section 153C, and the CIT(A) could not be explainable in confirming the taxing of the rent obtained via leasing of the house property beneath the income via additional sources rather than acknowledging the that beneath the head income through house property.
As per the contract, the issues of the department were on the grounds of voluntary admission by the searched person, a notice u/s. 153C was furnished via AO, for the searched person and the taxpayer the AO would be identical, and the satisfaction note would be needed via section 153 required not to be provided.
Listening to both sides and recognizing the facts and situations of the case the tribunal, but was of the view that from the plain reading of the circular in question, the same sees that even if the AO of the searched individual along with the other individual is one and identical, recording to the satisfaction under section 153 is necessary, since it was owned by various Courts of the country.
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Hence permitting the petition of the taxpayer the tribunal sees:
“In the instant case, no such material has been brought before us by the ld. DR. In view of the above discussions, since the Assessing Officer did not record the satisfaction before issuing of notice U/s. 153C of the Act, we are of the considered view that the order passed by the Ld. CIT(A) U/s. 153C of the Act deserves to be set aside for all the impugned assessment years. It is ordered accordingly.”
