Pursuant to documents seized from a third party during a search, proceedings under section 153C were initiated alleging that the assessee had made an unaccounted cash payment for purchase of land. The Tribunal held that the seized agreement had never been acted upon, as the assessee, on discovering the intermediary’s conduct, cancelled the proposed transaction and directly purchased a smaller parcel of land from the original farmers at the actual consideration, a fact corroborated by the intermediary’s statement. The Assessing Officer’s allegation of cash payment was unsupported by any cogent evidence. The satisfaction note initiating proceedings was vague, general and recorded without application of mind, merely proposing an enquiry without indicating escapement of income or linking it to any assessment year. Further, the approval under section 153D was granted mechanically by a composite approval for all assessment years instead of separate approvals. Accordingly, the Tribunal held that the proceedings under section 153C were vitiated and deleted the addition. Delay in filing the appeal was also condoned on showing sufficient cause. (AY. 2012-13)\u00a0<\/p>\n","protected":false},"excerpt":{"rendered":"
S. 153C: Assessment of person other than searched person -Satisfaction note -Addition on basis of unacted seized agreement -Invalid approval under section 153D -Entire assessment quashed. [S. 69C, 132, 143(3), 153D] <\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_post_was_ever_published":false},"categories":[21],"tags":[],"class_list":["post-62565","post","type-post","status-publish","format-standard","hentry","category-income-tax-act"],"acf":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-gh7","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/62565","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/comments?post=62565"}],"version-history":[{"count":1,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/62565\/revisions"}],"predecessor-version":[{"id":62566,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/62565\/revisions\/62566"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=62565"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=62565"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=62565"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}