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| The Tax Publishers2020 TaxPub(DT) 3048 (Mad-HC) INCOME TAX ACT, 1961
Section 158BD
By CBDT Circular No. 24 dated 31-12-2015, the guidelines of Supreme Court in the case of M/s. Calcutta Knitwears [[Civil Appeal No. 3958 of 2014 dt. 12-3-2014) : 2014 TaxPub(DT) 1547 (SC)] with regard to recording any satisfaction note were brought to the notice of all for strict compliance and it was clarified that even if AO of the searched person and the 'other person' was one and the same, then also, he was required to record his satisfaction, thus, appeal of Revenue was dismissed.
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Search and seizure - Block assessment under section 158BD - Non recording of satisfaction note for issuing notice under section 158BD -
Issue arose for consideration as to whether, Tribunal was right in quashing the assessment order holding that Tribunal was right in quashing the assessment order without noting that there is no time limit prescribed in the Act for recording satisfaction note for issuing notice under section 158BD and AO had initiated the proceedings within the reasonable time. Held: This appeal cannot be pursued by the revenue in the light of the Board's Circular No. 24/2015 dt. 31-12-2015 in which it was stated that the guidelines of Supreme Court in the case of M/s. Calcutta Knitwears [[Civil Appeal No. 3958 of 2014 dt. 12-3-2014) : 2014 TaxPub(DT) 1547 (SC)] with regard to recording any satisfaction note were brought to the notice of all for strict compliance and it was clarified that even if AO of the searched person and the 'other person' was one and the same, then also, he was required to record his satisfaction. Therefore, appeal of Revenue was dismissed.
Followed:CIT v. M/s. Calcutta Knitwears [Civil Appeal No. 3958 of 2014 dt. 12-3-2014) : 2014 TaxPub(DT) 1547 (SC) and Asstt. CIT v. M/s JF Chit Funds Pvt. Ltd. [I.T.(SS) A. No. 27/Mds/2011, C.O. No. 13/Mds/2012 (in I.T.(SS) A. No. 27/Mds/2011), dt. 27-2-2012]
REFERRED :
FAVOUR : In assessee's favour
A.Y. : 1-4-1996 to 15-11-2007
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