The assessee, part of the K.K.Builders\u00a0 group and engaged in construction of two hotel buildings under contract with K.K.Builders\u00a0\u00a0 \u00a0for its hotel business which was yet to commence, had assessments framed under section 153A read with section 153C making additions for unexplained construction expenditure under section 69C, based on a loose document seized during search at K.K. Builders\u00a0 \u00a0premises pertaining to the assessee. On appeal, the Tribunal held that the satisfaction note failed to specify the seized material or its bearing on the assessee’s income, and since the seized document, being the only material pertaining to the assessee, bore no reference to turnover, there could be no question of suppressed turnover when the assessee’s business itself had not commenced; the satisfaction note thus reflected complete non-application of mind both by the AO and the approving authority, rendering the approvals under section 153D equally invalid in law, and consequently the assessments, suffering from want of jurisdiction and valid approval, were bad in law and could not be given effect. (AY. 2008-09 to 2010-11)<\/p>\n","protected":false},"excerpt":{"rendered":"
S. 153C: Search and seizure-Assessment of third person-Satisfaction note-Must state with reference to information from seized material its relevance to assessee’s income-Assessee’s business not commenced-No question of turnover being suppressed-Seized documents bearing no reference to turnover-Satisfaction note issued without application of mind-Approval under section 153D also invalid-Assessments not sustainable. [S. 69C, 153A, 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-63002","post","type-post","status-publish","format-standard","hentry","category-income-tax-act"],"acf":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-goa","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/63002","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=63002"}],"version-history":[{"count":1,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/63002\/revisions"}],"predecessor-version":[{"id":63003,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/63002\/revisions\/63003"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=63002"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=63002"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=63002"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}