Kerala High Court Upholds Section 153C Proceedings; No Requirement To Have Din Number In Satisfaction Note Recorded By Assessing Authority


The Kerala High Court in the case M/S. South Coast Spices Exports Pvt. Ltd Versus PCIT observed and has upheld the proceedings initiated under section 153C of the Income Tax Act and noted that there being no such requirement to have a DIN number in the satisfaction note which is recorded by the Assessing Authority.
The bench headed by Justice Dinesh Kumar Singh in the case observed and has dismissed the writ plea wherein stating that it cannot be said that the impugned notices and assessment orders are without jurisdiction as it has been submitted by the learned counsel appearing for the petitioner.
The court stated that as per section 153C of the Income Tax Act where a search is initiated against a person under Section 132 or books of account, thus, the other documents or any assets are requisitioned under section 132A after May 05, 2003 but on or before March 31, 2021., then the Assessing Officer in the case can seek the return of income of six preceding assessment years and shall re-assess such returns. In the present case, the petitioner or assessee has approached the court against the assessment orders because the proceedings in issuing the notices issued under section 153C of the Income Tax Act for the assessment years 2015-2016 to 2020-2021 require them to file a return of income on the basis of the provisions of Section 153C.
It has also been argued by the assessee before the court that assessment orders are without jurisdiction and against the law. Thus, the petitioner has not approached the Appellate Authority and has approached the Court, wherein it invoked the writ jurisdiction of the said Court under Article 226 of the Constitution of India.
Further, the assessee contended before the court that the assessing officer is required to record a satisfaction note before issuing notice as stated under Section 153C to a person other than the searched person. Thus, the notice issued under Section 153C has not mentioned or specified the satisfaction note recorded by the respondent, the searched person and the satisfaction notes supplied to the petitioner in pursuance of the email sent by the petitioner do not bear the DIN number. Therefore, the whole proceedings are without jurisdiction and illegal.
It as also been examined by the assessing authority that the documents and recorded satisfaction with issuing notices under Section 153C. Thus, the petitioner has demanded the satisfaction note, and the letter which is being issued by the Assistant Commissioner of Income Tax, by which the satisfaction notes have been provided to the petitioner on his demand, the same would disclose that the letter bears the DIN number. The petitioner in the plea submitted before the court that since the satisfaction notes do not bear the DIN number, the whole proceedings are invalid. The court in the case noted that the satisfaction note is a document which is prepared by the assessing authority that is kept in the file, and unless an assessee demands the satisfaction note, it is not required to be provided to the assessee.