TASMASEEM COMMERCIAL PVT. LTD, Nagpur V. ACIT-CENTRAL-CIRCLE-2(3), Nagpur

ITA 149/NAG/2014

• Counselvise Citation: [2016] 131 COUNSELVISE.COM (IT) 1280 (ITAT-NAGPUR)
• Duration Of Justice: 2 year(s) 8 month(s) 17 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 19-12-2016
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: 2006-2007
• Appeal Filed On: 01-04-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: A R NINAWE
• Assessee Lawyers: R V LOYA
• Keywords: Search and seizure; Document seized; Accommodation entries; Assessment record; Documents seized
• Section: 68; 132; 15; 139; 153A; 234B; 133(6)

Judgement Text

1 ITA NOS. 146 TO 151/NAG/2014. IN THE INCOME TAX APPELLATE TRIBUNAL, NAGPUR BENCH, NAGPUR BEFORE SHRI SHAMIM YAHYA, ACCOUNTANT MEMBER AND SHRI RAM LAL NEGI JUDICIAL MEMBER. I.T.A. NOS. 146, 147 & 148 /NAG/2014. ASSESSMENT YEARS : 2005 - 06 , 2007 - 08 & 2009 - 10. MANSI COMMODITIES PVT. LTD, ASSTT. COMMISSIONER OF INCOME - TAX, VS. CENTRAL CIRCLE - 2(3), NAGPUR. PAN AADCM9961A. APPELLANT. RESPONDENT. I.T.A. NOS. 149, 150 & 151 /NAG/2014. ASSESSMENT YEARS : 200 6 - 07. 2007 - 08 & 2009 - 10. TASMSEEM COMMERCIAL PVT. LTD., ASSTT. COMMISSIONER OF INCOME - TAX, VS CENTRAL CIRCLE - 2(3), NAGPUR. PAN AABCT0577F. APPELLANT. RESPONDENT. A PPELLANT BY : SHRI R.V. LOYA. RESPONDENT BY : SHRI A.R. NINAWE. DATE OF HEARING : 25 - 11 - 2016 DATE OF PRONOUNCEMENT : 19 TH DEC ., 2016 O R D E R. PER BENCH: THESE APPEALS FILED BY TWO SEPARATE ASSESEES ARE DIRECTED AGAINST THE SEPARATE ORDERS OF LEARNED CIT(APPEALS) DATED 28 - 11 - 2013 FOR RESPECTIVE ASSESSMENT YEARS. SINCE THE ISSUES ARE COMMON AND CONNECTED, THE APPEALS WERE HEARD TOGETHER AND ARE BEING DISPOSED BY THIS COMMON ORDER. THE COMMON GROUNDS OF APPEAL READ AS UNDER : 2 ITA NOS. 146 TO 151/NAG/2014. 1. THAT THE ORDER OF ASSTT. COMMISSIONER OF INCOME TAX, CIRCLE - 2(3) IS BAD IN LAW AND WRONG ON FACTS AND THE LEARNED CIT(A) ERRED IN CONFIRMING THE SAME. 2. THAT THE NOTICE ISSUED U/S 153C AND THE PROCEEDINGS THEREAFTER ARE BAD IN LAW AND THE LEARNED CIT(A) ERRED IN UPHOLDING THE ACTION OF THE AO. ON THE FACTS AND CIRCUMSTANCES OF THE CASE, THE ACT ION IS UNJUSTIFIED. 3. THAT THE ASSESSING OFFICER ERRED IN LAW AND ON FACTS IN MAKING ADDITION S AS UNDISCLOSED INCOME HOLDING THAT THE INCREASE IN HARE CAPITAL AND SHARE PREMIUM AND ITS SOURCE IS NOT EXPLAINED AND THE LEARNED CIT(A) ERRED IN UPHOLDING THE ACTION OF THE AO. ON THE FACTS AND CIRCUMSTANCES OF THE CASE, THE EXPLANATION WITH EVIDENCE IS DULY SUBMITTED AND THE ACTION OF AUTHORITIES BELOW IN REJECTING SUCH EXPLANATION IS HIGHLY UNJUSTIFIED. 4. THAT THE LEARNED CIT(A) ERRED IN LAW AND ON FACTS IN HOLD ING THAT THE SHARE CAPITAL AND SHARE PREMIUM RECEIVED DURING THE YEAR IS NOT GENUINE AND CONFIRMING THE ADDITION U/S 68 OF THE INCOME TAX ACT. ON THE FACTS AND CIRCUMSTANCES OF THE CASE, THE AMOUNT OF SHARE CAPITAL AND SHARE PREMIUM RECEIVED DURING THE YEA R ARE GENUINE AND FULLY EXPLAINED. 5. THAT THE ASSESSING OFFICER ERRED IN LAW AND ON FACTS IN CHARGING INTEREST U/S 234A AND 234B OF THE ACT AND THE LEARNED CIT(A) ERRED IN CONFIRMING THE ACTION OF THE AO. ON THE FACTS AND CIRCUMSTANCES OF THE CASE, THE INTER EST CHARGED IS IMPROPER. 2 . IN ALL THESE CASES THERE WAS A SEARCH ACTION CARRIED OUT IN THE BUSINESS PREMISES OF GUPTA INDUSTRIES LTD. AND AT THE RESIDENTIAL PREMISES AS WELL AS OTHER PREMISES BELONGING TO MUKESH GUPTA ON 29 - 07 - 2009. DURING THE COURSE OF SEARCH, CERTAIN BOOKS OF ACCOUNTS AND DOCUMENTS WERE SEIZED. ON THE BASIS OF THESE SEIZED MATERIAL, NOTICE U/S 153C WAS ISSUED ON THE ASSESSEE. IN THE ASSESSMENT ORDER THE AO HAS REJECTED THE ASSESSEES PLEA AGAINST THE LACK OF VALIDI TY OF THE JURISDICTION FOR ISSUING NOTICE U/S 153C AND HAD MADE ADDITIONS MAINLY ON ACCOUNT OF SHARE CAPITAL AND SHARE PREMIUM MONEY RECEIPT AND ALSO OTHER ADDITIONS 3 ITA NOS. 146 TO 151/NAG/2014. 4 . UPON ASSESSEES APPEAL, THE LEARNED CIT(APPEALS) HAS DEALT WITH THE ASSESSEES CHALLENG E OF JURISDICTION AS UNDER : 2.1 THE AO NOTED THAT IN THE ASSESSMENT ORDER THAT IN THE RETURN FILED U/S 153C ASSESSEE HAS TAKEN A PLEA THAT THE NOTICE U/S 153C IS BAD IN LAW, WITHOUT SUBSTANTIATING ITS CLAIM. IN THE ABSENCE OF ANY SUBSTANTIAL REASON THE PLEA TAKEN BY THE ASSESSEE WAS HELD TO BE NOT TENABLE, MORE SO WHEN THERE IS SEARCH AND SEIZURE ACTION ON THE ASSESSEE U/S 132 OF THE ACT. 2.2 IN APPEAL PROCEEDINGS IT WAS SUBMITTED FOR THE APPELLANT THAT NO INCRIMINATING DOCUMENT FOR THE YEAR UNDER CONSI DERATION WAS FOUND DURING THE COURSE OF SEARCH. IN SUCH CIRCUMSTANCES THE NOTICE ISSUED U/S 153C IS BAD IN LAW. FURTHER, THE ASSESSEE IS NOT AWARE AS TO ON WHAT BASIS THE PROCEEDINGS U/S 153C HAS BEEN INITIATED AS SUCH INFORMATION WAS NOT PROVIDED. THAT TH E ASSESSEE SUBMITTED ALL THE DETAILS THAT WERE REQUIRED FOR THE PURPOSE OF ASSESSMENT FROM TIME TO TIME. THE BOOKS OF ACCOUNTS AND OTHER RECORDS PRODUCED BEFORE HIM WERE DULY ACCEPTED AFTER VERIFICATION. THE ADDITION IS MADE WITHOUT CONSIDERING THE FACTS A VAILABLE ON RECORD. 2.3 IN ADDITION TO THE FACT THAT AS NOTED IN THE ASSESSMENT ORDER, THE APPELLANT RAISED NO SUBSTANTIAL REASON FOR ITS OBJECTION TO NOTICE U/S 153C AND THE FACT THAT THE AO HAS NOTED THAT DURING THE COURSE OF SEARCH SEVERAL ITEMS OF BOOK S OF ACCOUNTS AND INCRIMINATING DOCUMENTS WERE FOUND AND SEIZED, AND THAT THE SEIZED MATERIAL VIDE ANNEXURE - B OF ITEM NO.13 BELONG TO THE ASSESSEE WHICH IS INCRIMINATING IN NATURE, AND FURTHER THAT THE AUTHORIZED REPRESENTATIVE OF THE ASSESSEE INSPECTED TH E SEIZED MATERIAL AND TOOK PHOTOCOPIES OF RELEVANT DOCUMENTS ETC., THE APPELLANTS GROUND IS HELD TO BE WITHOUT SUBSTANCE AND IS DISMISSED. 5 . ON MERITS LEARNED CIT(APPEALS) SUSTAINED THE ADDITION MADE BY THE AO AND CONCLUDED AS UNDER : AS HAS BEEN POINTED OUT BY THE HONBLE SUPREME COURT, THOUGH AN APPARENT STATEMENT MUST BE CONSIDERED REAL UNTIL IT IS SHOWN THAT THERE ARE REASONS TO BELIEVE THAT THE APPARENT IS NOT THE REAL, THE TAXING AUTHORITIES ARE ENTITLED TO LOOK IN TO THE SURROUN DING CIRCUMSTANCES TO FIND OUT THE REALITY OF SUCH RECITALS. IN VIEW OF THE FACTS AND CIRCUMSTANCES NARRATED ABOVE IT IS CLEAR THAT WHAT THE APPELLANT HAS SHOWN IN ITS ACCOUNT IS NOT THE REAL TRANSACTION BUT MERELY A FACADE. THE FUNCTION OF THE SUBSCRIBIN G COMPANIES IS MERELY TO ACT AS INTERMEDIATES TO CHANNELIZE INVESTMENT, THE SHARES SUBSCRIBED TO BY THEM AT SUCH HIGH PREMIUMS ARE NOT HELD FOR LONG BUT SOLD BACK TO THE GUPTA GROUP AT A FRACTION OF THE PURCHASE/SUBSCRIPTION VALUE I.E. SUBSCRIBED TO @ RS.1 00/ - PER SHARE (INCLUDING SHARE PREMIUM) 4 ITA NOS. 146 TO 151/NAG/2014. AND SOLD @ RS.2/ - TO RS.5/ - PER SHARE OR A SIMILAR PETTY AMOUNT. NO PRUDENT COMPANY WOULD SELL ITS ACQUIRED SHARES AT SUCH HEAVY LOSS MERELY A YEAR OR TWO LATER FOR NO DISCERNIBLE OR APPARENT REASON, WHICH ONLY INDI CATES THAT THE TRANSACTION ITSELF WAS NOT REAL BUT A MERE FACADE FOR CONCEALING THE TRUE SITUATION OF AFFAIRS. AFTER CONSIDERING SURROUNDING CIRCUMSTANCES AND APPLYING THE TEST OF HUMAN PROBABILITIES, THE AO HAS RIGHTLY CONCLUDED THAT THE APPELLANTS CLAIM ABOUT THE TRANSACTIONS BEING GENUINE IS NOT CORRECT, BUT THAT THE APPELLANT COMPANY WAS MERELY ACTING AS A CONDUIT OF FUNDS AND PROVIDING ACCOMMODATION ENTRIES AND EARNING COMMISSION THEREON (AS NO SERVICE WOULD BE PROVIDED FREE). THE AOS ACTION IN HOLDI NG THAT THE CAPITAL INTRODUCED THROUGH SHARES AMOUNTING TO RS.500 CRORES WHICH INCLUDES SHARE PREMIUM IS NOT FOUND GENUINE, AS THE SOURCES IDENTITY AND CREDITWORTHINESS OF THE COMPANIES HAVE NOT PROVED, AND ACCORDINGLY ADDED BACK IN THE TOTAL INCOME OF THE ASSESSEE U/S 68 OF THE IT ACT IS HELD TO BE REASONABLE AND CORRECT IN THE FACTS AND SURROUNDING CIRCUMSTANCES OF THE CASE. 6 . AGAINST THE ABOVE ORDER OF LEARNED CIT(APPEALS), ASSESSEE S ARE IN APPEALS BEFORE US. AS EMANATING FROM THE GROUNDS OF APPEAL REFERRED ABOVE, THE ASSESSEE AT THE THRESHOLD HAS RAISED THE ISSUE THAT LEARNED CIT(APPEALS) HAS ERRED IN HOLDING THAT THE NOTICE ISSUED U/S 153C IS VALID. 7 . WE HAVE HEARD BOTH THE COUNS EL AND PERUSED THE RECORDS. LEARNED COUNSEL OF THE ASSESSEE SUBMITTED THAT THE SATISFACTION OF THE AO OF THE SEARCHED PERSONS AS ENVISAGED U/S 153C OF THE I.T. ACT HAS NOT BEEN RECORDED BEFORE INITIATING THE PROCEEDINGS AGAINST THE ASSESSEE U/S 153C OF TH E ACT WHICH VITIATES THE ENTIRE IMPUGNED ASSESSMENTS. FOR THIS PROPOSITION, LEARNED COUNSEL REFERRED TO THE CBDT CIRCULAR NO. 24/2015 DATED 31 ST DECEMBER, 2015 WHICH HAS BEEN ISSUED ON THIS VERY SUBJECT. LEARNED COUNSEL SUBMITTED THAT FROM THE ABOVE SAID C BDT NOTIFICATION IT IS CLEAR THAT IN ABSENCE OF APPROPRIATE SATISFACTION RECORDED BY THE AO OF THE RAIDED PARTY EVEN IF HE IS THE SAME AO AS THAT OF ASSESSEE, THE ASSESSMENT WILL BE DEVOID OF JURISDICTION. LEARNED COUNSEL SUBMITTED THAT A PERUSAL OF THE SA TISFACTION NOTE AS EMANATING FROM THE ASSESSMENT RECORDS OF THE SEARCHED PARTY MAKES IT VERY CLEAR THAT THE APPROPRIATE 5 ITA NOS. 146 TO 151/NAG/2014. SATISFACTION HAS NOT BEEN RECORDED THEREIN. HE ASSERTED THAT NO SATISFACTION OF SEIZED DOCUMENTS BEING INCR I M INA T ING AND/OR BELONGING TO THE ASSESSEE IS RECORDED BY THE AO OF THE SEARCHED PERSON. THUS NO VALID NOTICE U/S 153C IS ISSUED IN THE CASE OF THE ASSESSEE AND ASSESSMENT FRAMED IS BAD IN LAW AND LIABLE TO BE QUASHED. LEARNED COUNSEL SUBMITTED THAT THIS PROPOSITION IS DULY SUPPORT ED BY FOLLOWING CASE LAWS : 1 (2015) 155 ITD 0501 (DELHI) DCIT VS. SATKAR ROADLINS PVT. TD. 2 (2015) 232 TAXMAN 0268 (AP) CIT VS SHEETTYS PHARMACEUTICALS & BIOLOGICAL LTD. 3 HON'BLE MADHYA PRADESH HIGH COURT ORDER IN ITA NO . 44/2011 IN THE CASE OF M/S . MECHMEN VIDE ORDER DATED 10/07/2015 4 (2014) 365 ITR 0411 (ALL) CIT VS . GOPI APARTMENT . 5 ITAT ORDER IN ITA NO . 1344/DEL/2012 IN THE CASE OF M/S . DSL PROPERTIES (P) LTD . VIDE ORDER DATED 22/03/2013 6 ITAT ORDER IN ITA NO . 5460 TO 5465/DEL/2012 IN THE CASE OF V . K . FISCAL SERVICES PVT . LTD . VIDE ORDER DATED27/11/2013 7 HON ' BLE BOMBAY HIGH COURT IN ITA NO . 1337 OF 2013 IN THE CASE OF M/S. INGRAM MICRO (INDIA) EXPORTS PTE. LTD . VIDE ORDER DATED 29/04/2015 8 HON'BLE DELHI HIGH COURT IN ITA NO . 422/2015 IN THE CASE OF NIKKI DRUGS & CHEMICALS PVT . LTD . V I DE ORDER DATED 03/12/2015 9 ITTA NO . 254 OF 2014 JUDGEMENT (PER HON ' BLE THE CHIEF JUSTICE SHRI KALYAN JYOTI SENGUPTA ) 10 ITAT ORDER IN ITA NOS . 4228/DEI/2 0 11 IN THE CASE OF M/S . SHIELD HOME PVT . LTD . VIDE ORDER DATED 24/02/2016 8 . FURTHER MORE LEARNED COUNSEL SUBMITTED THAT THE ADDITION HAS NOT BEEN MADE ON THE BASIS OF SEIZED MATERIAL. IN THIS REGARD LEARNED COUNSEL SUBMITTED 6 ITA NOS. 146 TO 151/NAG/2014. THAT THE ASSESSMENTS IN ALL THESE CASES HAVE BEEN COMPLETED EARLIER. HENCE IN THE ABSENCE OF INCRIMINATING MATERIAL FOUND DURING THE SEARCH, NO ADDITION IS SUSTAINABLE U/S 153C. LEARNED COUNSEL FURTHER SUBMITTED THAT NO INCRIMINATING DOCUMENT WAS FOUND DURING SEARCH. HE SUBMITTED THAT THERE IS ONLY MENTION OF ITEM NO. 13 OF ANNEXURE B SEIZED . HE S TATED THAT ITEM NO. 13 OF ANNEXURE - B CONTAINS THE DETAILS OF PURCHASE OF SHARES BY SMT. ANURADHA GUPTA, PADMESH GUPTA AND GUPTA CORPORATION LTD. ALONG WITH BILLS IN BETWEEN THE SELLER AN D THE PURCHASER AND THE TRANSFER DEEDS. THE ENTRIES FOR THE PURCHASE BY AFORESAID PERSONS IS DULY RECORDED IN TH E IR BOOKS OF ACCOUNTS. THE TRANSFER OF SHARES IS DULY NOTED IN HE RECORD OF THE ASSESSEE COMPANY. THUS THESE TRANSACTIONS MENTIONED IN SUCH DOCU MENT ARE DULY FOUND RECORDED. ON PERUSAL OF THE ASSESSMENT ORDER, IT WILL BE REVEALED THAT ADDITION IS NOT MADE ON THE BASIS OF THESE DOCUMENTS. THIS ITSELF ESTABLISHES THAT THE DOCUMENTS ARE NOT INCRIMINATING IN NATURE. F OR THE PROPOSITION THAT DEHORSE SE IZED MATERIAL, NO ADDITION IS SUSTAINABLE WHERE ASSESSMENTS HAVE ALREADY BEEN COMPLETED EARLIER , LEARNED COUNSEL RELIED UPON THE FOLLOWING CASE LAWS : 1 HON ' BLE BOMBAY HIGH COURT ORDER IN ITA NO.941 OF 201 IN THE CASE OF SINHGAD TECHNICAL EDUCATION SOCIETY VID ORDER DATED 25/03/2015 ' 2 (2011) 51 ' OTR 0241 (PUNE) SINHGAD TECHNICAL EDUCATION SOCIETY VS . AC I T 3. ITAT ORDER IN ITA NOS . 8628 - 8633/M/2010 IN THE CASE OF M/S . DHANANJAY LNTERNATIONA] LTD . VIDE ORDER DATED . 12/10/2015 4. ITAT ORDER IN ITA NO.959/PN/2010 IN THE CASE OF BHARATI V IDYAPEETH MEDICAL FOUNDATION VIDE ORDER DATED 28/04/2011 5. HON ' BLE BOMBAY HIGH COURT ORDER IN ITA NO.923 OF 20 1 IN THE CASE OF BHARATI VIDYAPEETH VIDE ORDER DA TED 11/09/2014 6. ITAT ORDER IN ITA NO.917/PN/2010 IN THE CASE OF BHARATI VI?YAPEETH VIDE ORDER DATED 28/04/2011 7 ITA NOS. 146 TO 151/NAG/2014. 7. HON'BLE DELHI HIGH COURT ORDER IN ITA NO . 171/2015 IN THE CASE OF M/S. REFAM MANAGEMENT SERVICES (P) L1 VIDE ORDER DATED 05/11/2015 8. HON ' BLE DELHI HIGH COURT ORDER IN ITA NO . 164/2015 IN THE CASE OF RRJ SECURITIES LTD. VIDE ORDER DATED 30/10/2015 9. ITAT ORDER I N ITA NOS . 1541 & 1543/MUM/2015 IN THE CASE OF M/S. EMPIRE MALL PVT . LTD. VIDE ORDER DATED 12/10/201 ' 5 10. ITAT ORDER IN IT(SS)A NOS.84 - 86/KOIL2011 IN THE CASE OF TRISHUL HI - TECH INDUSTRIES VIDE ORDER DATED 24/09/20 11. ITAT ORDER IN ITA NO . 472/COCH/2013 IN THE CASE OF M/S. ROYAL CARTONS P. LTD . VIDE ORDER DATED 16/09/201 1. 9 . PER CONTRA LEARNED D.R. RE LIED UPON THE ORDERS OF THE AUTHORITIES BELOW. 1 0 . WE FIND THAT AT THE OUTSET WE NEED TO ADJUDICATE THE JURISDICTION ASPECT. THE FIRST LIMB OF ARGUMENT IN THIS REGARD IS THAT THERE IS NO VALID SATISFACTION IN THE CASE OF THE PERSONS SEARCHED THAT INCRIMIN ATING MATERIAL FOUND MAY RELATE TO THE ASSESSEES IN WHOSE CASE ACTION HAS BEEN TAKEN U/S 153C. AT THE OUTSET IN THIS CASE WE MAY GAINFULLY REFER TO THE SATISFACTION RECORDED IN THE CASE OF PERSONS IN WHOSE CASES SEARCH AND SEIZURE ACTIVITIES WERE CONDUCTED . THE SATISFACTION NOTE FOUND IN THE CASE OF THE SEARCHED PERSONS, NAMELY, SHRI MUKESH GUPTA INDL. AND GUPTA COAL INDIA LTD. WERE EXAMINED FROM THE CONCERNED ASSESSMENT RECORDS BROUGHT BY THE LEARNED D.R. COMMON SATISFACTION NOTE IN THE CASE OF MUKESH GUP TA, INDL. READS AS UNDER : ALL THE BOOKS AND DOCUMENTS SEIZED / IMPOUNDED DURING THE COURSE OF SEARCH / SURVEY AS ALSO MATERIAL GATHERED ON ENQUIRIES AND POST SEARCH INVESTIGATIONS AND THE VARIOUS OBSERVATIONS MADE IN THE APPRAISAL REPORT HAVE BEEN CAREFU LLY EXAMINED AND CONSIDERED WITH REFERENCE TO THE REGULAR BOOKS OF ACCOUNTS WHILE FRAMING THE ASSESSMENTS FOR ALL THE ASSESSMENT YEARS. COMMON SATISFACTION NOTE IN THE CASE GUPTA COAL INDIA LTD. READS AS UNDER: 8 ITA NOS. 146 TO 151/NAG/2014. ALL THE BOOKS AND DOCUMENTS SEIZED/IMPOUND ED DURING THE COURSE OF SEARCH/SURVEY AS ALSO MATERIAL GATHERED ON ENQUIRIES AND POST SEARCH INVESTIGATIONS AND THE VARIOUS OBSERVATIONS MADE IN THE APPRAISAL REPORT HAVE BEN CAREFULLY EXAMINED AND CONSIDERED WITH REFERENCE TO THE REGULAR BOOKS OF ACCOUNTS WHILE FRAMING THE ASSESSMENTS FOR ALL THE ASSESSMENT YEARS. REGARDING QUANTITY OF COAL RECEIVED FROM AND SUPPLIED TO VARIOUS PARTIES INFORMATION WAS CALLED U/S 133(6) OF THE I.T. ACT. THE DETAILS WERE VERIFIED WITH REFERENCE TO BOOKS OF ACCOUNTS OF THE ASSESSEE AND THERE IS NO DISCREPANCY. REGARDING PAYMENT OF SALARY IN CASH THE INFORMATION HAS BEEN PASSED ON TO THE RESPECTIVE A.O. HAVING JURISDICTION OVER THE INDIVIDUAL. THE ASSESSEE HAS ACCOUNTED FOR THE ENTIRE EXPENDITURE IN THE BOOKS. REGARDING RECEIPT OF RS.5 LAKHS IN THE CASH BOOK OF CHANDRAPUR BRANCH THE AMOUNT IS DULY REFLECTED IN THE CASH BOOK OF CHANDRAPUR BRANCH. 1 1 . THERE IS NO OTHER SATISFACTION NOTE WHATSOEVER IN THE CONCERNED ASSESSMENT FILES OF THE PERSONS IN WHOSE CASE SEARCH ACTION HAS BEEN CONDUCTED AND BASED UPON WHICH NOTICES HAVE BEEN ISSUED U/S 153C TO THE ASSESSEE. 1 2 . IN THIS REGARD WE CAN GAINFULLY REFER TO THE PROVISIONS OF SECTION 153(1) AS UNDER : NOTWITHSTANDING ANYTHING CONTAINED IN SECTION 139 , SECTION 147 , SECTION 148 , SECTION 149 , SECTION 151 AND SECTION 153 , WHERE THE ASSESSING OFFICER IS SATISFIED THAT ANY MONEY, BULLION, JEWELLERY OR OTHER VALUABLE ARTICLE OR THING OR BOOKS OF ACCOUNT OR DOCUMENTS SEIZED OR REQUISITIONED BELONGS OR BELONG TO A PERSON OTHER THAN THE PERSON REFERRED TO IN SECTION 153A , THEN THE BOOKS OF ACCOUNT OR DOCUMENTS OR ASSETS SEIZED OR REQUISITIONED SHALL BE HAN DED OVER TO THE ASSESSING OFFICER HAVING JURISDICTION OVER SUCH OTHER PERSON 3A [ AND THAT ASSESSING OFFICER SHALL PROCEED AGAINST EACH SUCH OTHER PERSON AND ISSUE NOTICE AND ASSESS OR REASSESS THE INCOME OF THE OTHER PERSON IN ACCORDANCE WITH THE PROVISIONS OF SECTION 153A , IF, THAT ASSESSING OFFICER IS SATISFIED THAT THE BOOKS OF ACCOUNT OR DOCUMENTS OR ASSETS SEIZED OR REQUISITIONED HAVE A BEARING ON THE DETERMINATION OF THE TOTAL INCOME OF SUCH OTHER PERSON FOR THE RELEVANT ASSESSMENT YEAR OR YEARS REFERRED TO IN SUB - SECTION (1) OF SECTION 153A ] :] 4 [ PROVIDED THAT IN CASE OF SUCH OTHER PERSON, THE REFERENCE TO THE DATE OF INITIATION OF THE SEARCH UNDER SECTION 132 OR MAKING OF REQUISITION UNDER SECTION 132A IN THE SECOND PROVISO TO 5 [SUB - SECTION (1) OF] SECTION 153A SHALL BE CONSTRUED AS REFERENCE TO THE DATE OF RECEIVING THE BOOKS OF ACCOUNT OR DOCUMENTS OR ASSETS SEIZED OR REQUISITIONED BY THE ASSESSING OFFICER HAVING JURISDICTION OVER SUCH OTHER PERSON :] 9 ITA NOS. 146 TO 151/NAG/2014. 6 [ PROVIDED FURTHER THAT THE CENTRAL GOVERNMENT MAY BY RULES 7 MADE BY IT AND PUBLISHED IN THE OFFICIAL GAZETTE, SPECIFY THE CLASS OR CLASSES OF CASES IN RESPECT OF SUCH OTHER PERSON, IN WHICH THE ASSESSING OFFICER SHALL NOT BE REQUIRED TO ISSUE NOTICE FOR ASSESSING OR REASSESSING THE TOTAL INCOME FOR SIX ASSESSMENT YEARS IMMEDIATELY PRECEDING THE ASSESSMENT YEAR RELEVANT TO THE PREVIOUS YEAR IN WHICH SEARCH IS CONDUCTED OR REQUISITION IS MADE EXCEPT IN CASES WHERE ANY ASSESSMENT OR REASSESSMENT HAS ABATED.] 1 3 . FROM TH E ABOVE PROVISIONS, IT IS CLEAR THAT WHERE THE AO OF THE PERSONS SEARCHED IS SATISFIED THAT ANY MONEY, BULLION, JEWELLERY, BOOKS OF ACCOUNTS OR OTHER DOCUMENTS ETC. BELONG TO A PERSON OTHER THAN A SEARCHED PERSON, THEN SUCH DOCUMENT OR ASSETS ETC. SHALL BE HANDED OVER TO THE AO OF THE OTHER PERSON AND THE LATER AO SHALL PROCEED AGAINST SUCH OTHER PERSON TO ASSESS OR REASSESS HIS INCOME. THUS IT IS MANIFEST BEFORE HANDING OVER SUCH DOCUMENTS TO THE AO OF THE OTHER PERSON A SATISFACTION HAS TO BE RECORDED B Y THE AO OF THE SEARCHED PERSONS, THAT MONEY , BULL I ON OR JEWELLERY, ETC.,FOUND FROM THE PERSON SEARCHED BELONG TO THE ' OTHER PERSON ' . ONLY WHEN SUCH 'SATISFACTION' IS RECORDED BY THE AO OF THE PERSON SEARCHED AND SUCH DOCUMENTS OR ASSETS SEIZED, ETC., ARE HANDED OVER TO THE AO OF THE 'OTHER PERSON', THAT THE LATER AO ACQUIRES JURISDICTION TO MAKE ASSESSMENT OR REASSESSMENT OF THE 'OTHER PERSON. ' IT IS, THEREFORE, CLEAR THAT THE AO OF THE ' OTHER PERSON' CAN ACQUIRE JURISDICTION TO ASSESS OR REASSESS INCOME OF THE 'OTHER PERSON' ONLY WHEN THE AO OF THE PERSONS SEARCHED RECORDS SATISFACTION IN HIS CASE (SEARCHED PERSON) BEFORE HANDING OVER MONEY, BULLION, JEWELLERY, ETC. TO HIM. SO, WHAT EMERGES IS THAT THE RECORDING OF S ATISFACTION BY THE AO OF THE PERSON SEA RCHED IS A CONDITION PRECEDENT FOR THE AO OF THE ' OTHER PERSON' TO ACQUIRE JURISDICTION. UNLESS SUCH JURISDICTIONAL FACT IS SATISFIED, THERE CAN BE NO QUESTION OF MAKING ASSESSMENT OR REASSESSMENT OF THE 'OTHER PERSON. ' IN THE CASE OF ANIL KUMAR & ORS. VS. UOI & ORS . REPORTED IN 155 TAXMAN 659 (5C),THE HON'BLE APEX COURT OBSERVED THAT 'A JURISDICTIONA L FACT IS A FACT WHICH MUST EXIST BEFORE A COURT, A TRIBUNAL OR AN AUTHORITY ASSUMES JURISDICTION OVER A PARTICULAR MATTER. A JURISDICTIONAL FACT IS ON E ON 10 ITA NOS. 146 TO 151/NAG/2014. EXISTENCE OR NON - EXISTENCE OF WHICH DEPENDS JURISDICTION OF A COURT, A TRIBUNAL OR AN AUTHORITY .. IT IS THE FACT UPON WHICH AN ADMINISTRATIVE AGENCY'S POWER TO ACT DEPENDS. IF THE JURISDICTIONAL FACT DOES NOT EXIST, THE COURT, AUTHORITY OR OFFICER CA NNOT ACT. IF A COURT OR AUTHORITY WRONGLY ASSUMES THE EXISTENCE OF SUCH FACT, THE ORDER CAN BE QUESTIONED BY A WRIT OF CERTIORARI. THE UNDERLYING PRINCIPLE IS THAT BY ERRONEOUSLY ASSUMING EXISTENCE OF SUCH JURISDICTIONAL FACT , NO AUTHORITY CAN CONFER UPON ITSELF JUR I SDICTION WH I CH IT OTHERWISE DOES NOT POSSESS. THE EXISTENCE OF ' JURISDICTIONAL FACT ' IS SINE QUA NON FOR THE EXERCISE OF POWER BY A COURT OF LIMITED JURISDICTION . AS NOTED EARLIER SECTION 153C PROVIDES FOR TAKING RECOURSE TO ASSESSMENT IN RESPECT OF ANY OTHER PERSON, THE CONDITIONS PRECEDENT WHEREFORE ARE: (I) SATISFACTION MUST BE RECORDED BY THE AO THAT ANY UNDISCLOSED INCOME BELON G S TO ANY PERSON, OTHER THAN THE P ERSON WITH RESPECT TO WHOM SEARCH WAS MADE UNDER S. 132; (II) THE BOOKS OF ACCOUNT OR OTHER DOCUMENTS OR ASSETS SEIZED OR REQUISITIONED HAD BEEN HANDED OVER TO THE AO HAVING JURISDICTION OVER SUCH OTHER PERSON; AND (III) THE AO HAS PROCEEDED UNDER S. 153C AGAINST SUCH OTHER PERSON. THE CONDITIONS PRECEDENT FOR INVOKING THE PROVISIONS OF S. 153C, THUS, ARE REQUIRED TO BE SATISFIED BEFORE THE PROVISIONS OF SAID SECTION ARE APPLIED IN RELATION TO ANY PERSON OTHER THAN THE PERSON WHOSE PREMISES HAD BEEN SEARCHE D OR WHOSE DOCUMEN T S AND OTHER ASSETS HAD BEEN REQUISITIONED UNDER S. 132A.S THAT THE RECORDING OF SATISFACTION BY THE AO HAVING JURISDICTION OVER THE PERSON SEARCHED IS AN ESSENTIAL AND PREREQUISITE CONDITION FOR BESTOWING JURISDICTION TO THE AO OF THE OTHER PERSONS. 1 4 . NOW IN THIS REGARD THE CBDT HAS ALSO ISSUED NOTIFICATION AS UNDER : 11 ITA NOS. 146 TO 151/NAG/2014. CIRCULAR NO. 2 4 /2015 F . NO . 279/MISC . L140 /2015/IT J GOVERNMENT OF INDIA M I N I ST R Y OF F I NANCE DEPARTMENT OF REVENUE CE NT R AL BO ARD O F D IR EC T T A XES NEW DELHI , 31 ST DECEMBER , 2015 SUBJECT: RECORDING OF SATISFACTION NOTE UNDER SECTION 158BD/153C OF THE ACT - REG. - THE ISSUE OF RECORDING OF SAT I SFACTION FOR THE PURPOSES OF SECTION 158BD/153C HAS BEEN SUBJECT MATTER OF LITIGATION . 2 . THE HON ' BLE SUPREME COURT I N THE CASE OF MLS CALCUTTA KNITWEARS IN ITS DETAILED JUDGMENT IN CIVIL APPEAL NO . 3958 OF 2014 DATED 12 . 3 . 2014(AVAILABLE IN NJRS AT 2014 - LL - 0312 - 51) HAS LAID DOWN THAT FOR THE PURPOSE OF SECT I ON 15880 OF THE ACT , RECORDING OF A SATISFACTION NOTE IS A PRE REQUISITE AND THESATISFACTION NOTE MUST BE PREPARED BY THE AO BEFORE HE TRANSMITS THE RECORD TO THE OTHER AO WHO HAS JURISDICT I ON OVER SUCH OTHER PERSON ULS 15880 . THE HON'BLE COURT HELD THAT 'TH E SATISFACTION NOTE COULD BE PREPARED AT ANY OF THE FOLLOWI NG STAGES : ( A ) AT T HE TIM E O F O R A L O N G WITH TH E INITIATION OF PR OCEED IN G S A GA INST THE SEARCHED PERSON UN DE R SECT I ON 158BC OF THE ACT ; OR ( B ) IN TH E COURSE OF THE ASSESSMENT PROCEEDINGS UNDER SEC TI O N 1 5 8 B C O F TH E ACT ; OR ( C) IMM E DI A T E LY AFT E R TH E ASSE SSMENT PR O CE E DIN G S ARE COMPLETED UNDER SECTION 158BC OF THE A CT OF THE SEARCHED PERSON . ' 3 . SEVERAL HIGH COURTS HAVE HELD THAT THE PRO V I S I ONS OF SECTION 153C OF THE ACT ARE SUBSTANTIALLY SIMILAR/PARI - MATERIA TO THE P R OVISIONS OF SECTION 158 BO OF THE ACT AND THEREFORE, THE ABOVE GUIDEL I NES OF THE HON'BLE SC , APPLY TO PROCEEDINGS U/S 15 3C OF THE IT ACT , FOR THE PURPOSES OF ASSESSMENT OF INCOME OF OTHER THAN THE SEARCHED PERSON . THIS V IEW HAS BEEN ACCEPTED BY CBOT . 4. THE GUIDELINES OF THE HON'BLE SUPREME COURT AS REFERRED TO IN PARA 2 ABOVE , WITH REGARD TO RECORDING OF SATISFACTION NOTE , MAY BE BROUGHT TO THE NOTICE OF ALL FOR STRICT COMPLIANCE . IT IS FURTHER CLARIFIED THAT EVEN IF THE AO OF THE SEA R CHED PERSON AND THE 'OTHER PERSON' IS ONE AND THE SAME , THEN ALSO HE IS REQUIRED TO RECORD H I S SAT I SFACT I ON AS HAS BEEN HELD BY THE COURTS. 5 . IN VIEW OF THE A BOVE , FILI N G OF APPEALS ON THE I SSUE OF RECORDING OF SAT I SFACT I ON NOTE SHOULD ALSO BE DECIDED IN THE L I G HT O F TH E A B OVE JUDGEMENT . ACCORDINGL Y , T HE BOARD HE R EBY D I RECTS THAT P E N D I NG LIT IGA TI ON W ITH REGA RD T O R E COR D IN G OF SATISFACTION NOTE UNDER SECT I ON 1 58BO /1 53C SHOULD BE WIT H D R A W N /N O T P R ESS ED IF IT DOES NOT M E ET THE GUIDELINES LAID DOWN BY T HE APE X COU R T . 15 . FROM THE ABOVE CBDT NOTIFICATION IT IS CLEAR THAT EVEN IF THE AO OF THE SEARCHED PERSONS AND THE ASSESSEE ARE SAME STILL PROPER SATISFACTION QUA THE DOCUMENTS ETC. FOUND RELATING TO THE ASSESSEE HAS TO BE RECORDED IN THE CASE OF THE SEARCHED PERSONS. FROM THE PERUSAL OF THE SATISFACTION NOTE OF THE AO IN THE CASE OF THE SEARCHED PERSONS AS REPRODUCED ABOVE IT IS EVIDENT THAT THERE IS NO SUCH SATISFACTION THAT ANY BULLION, JEWELLERY, BOOKS OF ACCOUNTS, OTHER DOCUMENTS ETC. BELONGING TO THE ASSESSEE HAS BEEN FOUND AND THE SAME IS BEING 12 ITA NOS. 146 TO 151/NAG/2014. HANDED OVER TO THE AO OF THE ASSESSEE. THUS THE ABSENCE OF REQUISITE SATISFACTION DENUDES THE LEGALITY OF JURISDICTION IN THIS CASE. HENCE IT HAS TO BE HELD THAT SINCE PROPER SATISFACTION AS ENVISAGED U/S 153C HAS NOT BEEN RECOR DED, THE ASSESSMENTS ARE LIABLE TO BE QUASHED ON ACCOUNT OF LACK OF VALIDITY OF JURISDICTION. IN THIS REGARD THE CASE LAWS REFERRED ABOVE BY THE LEARNED COUNSEL OF THE ASSESSEE SUPPORT THIS PROPOSITION. WE MAY GAINFULLY REFER TO SOME OF THEM AS UNDER : I) CIT VS. SHETTY PHARMACEUTICALS & BIOLOGICAL LTD. 232 TAXMAN 0268. (ANDHRA PRADESH H.C.) IN THIS CASE IT WAS HELD THAT SECTION 153C AND 153A MANDATES RECORDING OF SATISFACTION OF THE ASSESSING OFFICER(S) IS A PRE - CONDITION FOR INVOKING JURISDICTION AND IT IS NOT A MERE FORMALITY BECAUSE RECORDING OF SATISFACTION POSTULATES APPLICATION OF MIND CONSCIOUSLY AS THE DOCUMENTS SEIZED MUST BE BELONGING TO THE ANY OTHER PERSON OTHER THAN THE PERSON REFERRED TO IN SECTION 153 - A OF THE ACT. IT IS CONTENDED THAT THE SAME ASSESSING OFFICER IS INVOLVED IN THE MATTER. THIS FACT DOES NOT DISPENSE WITH ABOVE REQUIREMENT. IT IS SETTLED POSITION OF LAW THAT WHEN A THING IS TO BE DONE IN ONE PARTICULAR MANNER UNDER LAW THIS HAS TO BE DONE IN THAT MANNER ALONE AND NOT OTHER WA Y (SEE NAZIR AHMED V. KING EMPEROR). WE THINK THE LEARNED TRIBUNAL HAS CORRECTLY FOLLOWED THE PRINCIPLE. WE DO NOT FIND ANY ELEMENT OF LAW TO BE DECIDED. CONCLUSION: RECORDING OF SATISFACTION OF AO(S) IS PRE - CONDITION FOR INVOKING JURISDICTION AND IT IS NOT A MERE FORMALITY BECAUSE RECORDING OF SATISFACTION POSTULATES APPLICATION OF MIND DCONSCIOUSLY AS DOCUMENTS SEIZED MUST BE BELONGING TO ANY OTHER PERSON OTHER THAN PERSON REFERRED TO IN S. 153 - A. II) HONBLE HIGH COURT OF MADHYA PRADESH HIGH COURT DECI SION IN THE CASE OF CIT VS. MECHMEN IN ITA NO. 44/2011, ITA NO. 45/2011 & OTHERS VIDE ORDER DATED 10 - 07 - 2015. IN THIS CASE THE RELEVANT EXPOSITION FROM THE HONBLE HIGH COURT IS AS UNDER : EVEN FOR THE PURPOSE OF SECTION 153C, THE ASSESSING OFFICER BEFO RE HANDING OVER THE ITEMS TO THE ASSESSING OFFICER HAVING 13 ITA NOS. 146 TO 151/NAG/2014. JURISDICTION MUST BE SATISFIED THAT THE ITEMS BELONGS OR BELONG TO THE PERSON OTHER THAT THE PERSON REFERRED TO IN SECTION 153A. THAT SATISFACTION OF THE CONCERNED ASSESSING OFFICER IS A SINE QUA NON . THE CONSEQUENCES FLOWING FROM THE ACTION TO BE TAKEN ON THE BASIS OF SUCH INFORMATION HANDED OVER TO THE ASSESSING OFFICER HAVING JURISDICTION, FOR THE ASSESSEE, WHO IS A PERSON OTHER THAN THE PERSON REFERRED TO IN SECTION 153A, IS DRASTIC OF ASSESSM ENT OR RE - ASSESSMENT OF HIS INCOME FALLING WITHIN SIX ASSESSMENT YEARS. THE FACT THAT INCIDENTALLY THE ASSESSING OFFICER IS COMMON AT BOTH THE STAGES WOULD NOT EXTRICATE HIM FROM RECORDING SATISFACTION AT THE RESPECTIVE STAGES. IN THAT, THE ASSESSING OFFICER IS SATISFIED THAT THE ITEMS REFERRED TO IN SECTION 153C BELONGS OR BELONG TO A PERSON (OTHER THAN THE PERSON REFERRED TO IN SECTION 153A), BEING SINE QUA NON. HE CANNOT ASSUME JURISDICTION TO TRANSMIT THOSE ITEMS TO ANOTHER FILE WHICH INCIDENTALLY IS PENDING BEFORE HIM CONCERNING OTHER PERSON (PERSON OTHER THAN THE PERSON REFERRED TO IN SECTION 153A). SIMILARLY, AS THERE IS NO PROVISION EITHER EXPRESS OR IMPLIED (IN THE ACT) TO DISPENSE WITH THE REQUIREMENT OF SATISFACTION, IF THE ASSESSING OFFICE R HAPPENS TO BE THE SAME, AS IN THIS CASE, THE ARGUMENTS OF THE DEPARTMENT MUST BE NEGATIVE. WE CONCLUDE THAT THE CONDITION PRECEDENT FOR RESORTING TO ACTION UNDER SECTION 158BD DELINEATED BY THE SUPREME COURT IN THE CASE OF MANISH MAHESHWARI (SUPRA) AND IN THE RECENT CASE OF COMMISSIONER OF INCOME - TAX - III VS. CALCUTTA KNITWEARS (SUSPRA), WOULD APPLY ON ALL FOURS MANDATING SATISFACTION OF THE ASSESSING OFFICER(S) DEALING WITH THE CASE AT THE RESPECTIVE STAGES REFERRED TO IN SECTION 153C. III) HONBLE BOMB AY HIGH COURT DECISION IN THE CASE OF DIRECTOR OF INCOME TAX VS. M/S INGRAM MICRO (INDIA) EXPORTS PTE LTD. IN ITA NO. 1337 OF 2013 & OTHERS VIDE ORDER DATED 29 - 04 - 2015. IN THIS CASE IT WAS EXPOUNDED THAT AS PER PROVISIONS OF SECTION 153A AND SECTION 153C OF THE I.T. ACT, PROCEEDINGS CAN ONLY BE INITIATED AFTER THE AO ARISE AT THE SATISFACTION THAT THE SEIZED MATERIAL PERTAINS TO OTHER PERSONS, NAMELY, PERSONS OTHER THAN SEARCHED PERSONS. IT IS ONLY THEN THE PERSONS OTHER THAN THE SEARCHED PARTY CAN BE PR OCEEDED AGAINST. 14 ITA NOS. 146 TO 151/NAG/2014. IF THERE IS A SATISFACTION REQUIRED AND TO BE RECORDED AS A PRE - CONDITION AND WHICH IS MANDATORY THEN IN THE ABSENCE THEREOF ALL FURTHER STEPS STAND VITIATED. IV) IN A BATCH OF APPEALS IN ITA NO. 60/2016 & OTHERS IN THE PRINCIPAL CIT VS. SATKAR ROADLINES PVT. LTD. VIDE ORDER DATED JANUARY 12, 2016, THE HONBLE DELHI HIGH COURT NOTED AS UNDER : IT IS STATED BY MS. SURUCHI AGGARWAL, SENIOR COUNSEL FOR THE REVENUE, THAT IN LIGHT OF THE CIRCULAR NO. 24/2015 DATED 31ST DECEMBER, 2015 ISSUED BY THE CENTRAL BOARD OF DIRECT TAXES ON THE SUBJECT RECORDING OF SATISFACTION NOTE UNDER SECTION 158BD/153C OF THE ACT, THESE APPEALS ARE NOT PRESSED THESE APPEALS ARE, ACCORDINGLY, DISMISSED AS NOT PRESSED. 1 6 . FROM THE ABOVE CASE LAWS AND CBDT CIRCULAR, IT IS EVIDENT THAT RECORDING OF REQUISITE SATISFACTION IN THE CASE OF A SEARCHED PARTY IS A SINE QUA NON FOR ASSUMING JURISDICTION FOR THE ISSUE OF NOTICE U/S 153C EVEN IF THE AO OF THE SEARCHED PERSON AND THE A SSESSEE ARE SAME. IT IS ABUNDANTLY CLEAR FROM THE SATISFACTION NOTE RECORDED IN THE CASE OF THE SEARCHED PERSON THAT THERE IS NO REQUISITE SATISFACTION GRANTING THE AO JURISDICTION FOR ISSUING NOTICE TO THE ASSESSEE U/S 153C OF THE I.T. ACT. THE SATISFACTI ON NOTE AS EMANATED FROM FILES OF SEARCHED PERSONS, NAMELY, M/S MUKESH GUPTA AND GUPTA INDUSTRIES LTD. DOES NOT SHOW AT ALL THAT THAT THE AO IN THEIR CASE HAS RECORDED A SATISFACTION THAT ANY OF THE SEIZED MATERIAL IS BELONGING TO THE ASSESSEE HAS BEEN FOU ND, AND IS INCRIMINATING IN NATURE WHICH IS TO BE HANDED OVER TO THE AO OF THE ASSESSEE. IN SUCH CIRCUMSTANCES, IN OUR CONSIDERED OPINION, THE ASSESSEE DESERVES TO SUCCEED ON THIS ACCOUNT AND THE ASSESSMENTS ARE LIABLE TO BE QUASHED ON ACCOUNT OF LACK OF V ALIDITY OF JURISDICTION. ACCORDINGLY WE SET ASIDE THE ORDERS OF LEARNED CIT(APPEALS) ON THIS ASPECT OF JURISDICTION AND QUASH THE ASSESSMENTS BY HOLDING THAT REQUISITE SATISFACTION WAS NOT RECORDED BEFORE THE ISSUE OF NOTICE U/S 153C. 15 ITA NOS. 146 TO 151/NAG/2014. 1 7 . IN THIS REGARD WE FURTHER NOTE THAT IN SIMILAR SITUATION WHEN THE FINDING WAS THAT REQUISITE SATISFACTION WAS NOT THERE IN THE CASE OF THE SEARCHED PERSON QUA INCRIMINATING MATERIAL RELATING TO ASSESSEE HAVING BEEN FOUND, THE REVENUE HAD WITHDRAWN THIS APPEAL BEFORE THE HONBLE DELHI HIGH COURT IN THE LIGHT OF CIRCULAR NO. 24/2015 AS REFERRED ABOVE, CIT VS. SATKAR ROADLINES (SUPRA). 18. WE FURTHER NOTE THAT AN IDENTICAL VIEW AS ABOVE HAS BEEN TAKEN BY THIS BENCH IN SIMILAR CASE OF GROUP CONCERN IN THE CASE OF M/S GRACE INDUSTRIES LTD. IN ITA NOS. 296 TO 300/NAG/ 2014 AND 348 TO 352/NAG/2014 VIDE ORDER DATED 25 TH NOVEMBER, 2016. 1 9 . AS REGARDS THE LEARNED COUNSEL OF THE ASSESSEES CHALLENGE OF ADDITION ON ACCOUNT OF THE PLEA THAT SINCE THE ASSESSMENT HAD ALREADY BEEN COMPLETED EARLIER, DEHORSE ANY INCRIMINATING SEIZED MATERIAL FOUND ADDITION IS NOT SUSTAINABLE, AND OTHER ISSUES RELATING TO MERITS OF ADDI TION , WE FIND T HAT THE SAME IS NOW ONLY OF ACADEMIC INTEREST AS WE HAVE ALREADY QUASHED THE VALIDITY OF JURISDICTION IN THE PRECEDING PARAGRAPHS. HENCE WE ARE NOT ENGAGING INTO ADJUDICATING THIS ASPECT OF LEARNED COUNSEL OF THE ASSESSEES SUBMISSION. 20 . IN THE RESULT THESE APPEALS FILED BY THE ASSESSEES STAND ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON THIS 19 TH DAY OF DEC ., 2016. SD/ - SD/ - (RAM LAL NEGI) ( SHAMIM YAHYA) JUDICIAL MEMBER. ACOUNTANT MEMBER. NAGPUR, DATED: 19 TH DEC. , 2016. 16 ITA NOS. 146 TO 151/NAG/2014. COPY FORWARDED TO : 1. MANSI COMMODITIES PVT. LTD, 2. TASMASEEM COMMERCIAL PVT. LTD. C/O M/S LOYA BAGRI & CO., C.AS., GANDHIBAGH, NAGPUR - 440002 . 3. A.C.I.T.,CENTRAL CIRCLE - 2(3), NAGPUR. 4. C.I.T. - (CENTRAL) , NAGPUR. 5. CIT(APPEALS), - , NAGPUR. 6. D.R., ITAT, NAGPUR. 7. GUARD FILE TRUE COPY BY ORDER ASSISTANT REGISTRAR, INCOME TAX APPELLATE TRIBUNAL, NAGPUR BENCH, NAGPUR. WAKODE.