Issuing notice u/s.153C of the Income Tax Act

IN THE INCOME TAX APPELLATE TRIBUNAL
HYDERABAD ‘A’ BENCH : Hyderabad
(Through Video Conference)
Before Smt. P. MADHAVI DEVI, Judicial Member
and
Shri L.P. SAHU, Accountant Member
ITA No. 489/Hyd./2020
Assessment Year: 2006-07

ACIT, Central Circle 3(1)

Hyderabad

vs

M/s Aashi Plywood Industries

Hyderabad

[PAN: AADFP9625M]

For Revenue: Sri Waseem-Ur-Rahman, D.R.
For Assessee: Shri P. Murali Mohana Rao, AR.
Date of Hearing : 03/08/2021
Date of Pronouncement : 30/08/2021
O R D E R

This appeal of Revenue is directed against the order of the CIT(A)-12, Hyderabad dated 13.03.2020 pertaining to A.Y. 2006-07.

2. Facts of the case in brief are that a search and seizure operation u/s 132 of the Act was carried out in the case of M/s MBS Jewellers Pvt. Ltd., and its group of cases on 11.03.2010. 

3. Accordingly, notice u/s 153C was issued to the assessee on 22.11.2011. In response to notice, assessee filed return of income on 15th December,2011 declaring total income of Rs. 1,78,796/-. Accordingly, other statutory notices were issued to the assessee. During the course of assessment proceedings from the balance sheet it was observed that there was total unsecured loan of Rs. 2,81,26,000/- out of which three unsecured loan creditors were discussed in AY 2004-05, therefore, the remaining balance of Rs.1,83,51,000/- was added to the income of assessee by holding that the assessee did not satisfy the conditions stipulated in sec.68 of the Act.

4. Ld.DR relied on the order of the AO and submitted that the CIT(A) was not justified to allow the appeal of the assessee by holding that there was no satisfaction recorded while initiating proceedings u/s 153C is totally wrong and he drew our attention to the copy of order of this bench recorded by AO. Accordingly he submitted that there was proper satisfaction recorded by the AO while initiating proceedings u/s 153C of the Act.

5. After hearing both the sides and orders of authorities below, we observe that the impugned issue has been decided by the CIT(A) by holding that there is no satisfaction recorded by the AO while initiating proceedings u/s 153C of the Act. While going through the paper book page no.64 which was a copy of the order sheet which is as under.

6. In the result, Revenue’s appeal is dismissed.
Order pronounced on 30/08/2021.

Please find attached the enclosed file for the full judgement