Royal Multiplex (P) Ltd. vs. ACIT, Central Circle II

Parties Involved

Facts Summary

The assessee, Royal Multiplex (P) Ltd., filed six appeals against the consolidated order of the Commissioner of Income-tax (Appeals)-3, Gurgaon, for the assessment years 2011-12 to 2013-14 and 2015-16 to 2017-18. The appeals were heard together and disposed of by a common order. A search and seizure operation was conducted on 21.07.2016 at the residential and office premises of the M3M group of cases. Certain documents were seized containing information pertaining to the assessee. The Assessing Officer (AO) recorded satisfaction that these documents have bearing on the determination of the total income of the assessee. Notice under section 153C of the Income-tax Act, 1961, was issued to the assessee requiring them to file their return of income for six assessment years. The assessee filed their return of income declaring income at Rs. Nil. Subsequently, notices under sections 143(2) and 142(1) were issued to the assessee.…

Legal Issues

• 1. Whether the learned Commissioner of Income Tax (Appeals) erred in upholding the assumption of jurisdiction under section 153C of the Act and framing of assessment under section 153A(1)(b) of the Act.
• 2. Whether the satisfaction note recorded by the AO was valid and whether the proceedings under section 153C of the Act were initiated correctly.

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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