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2019 (4) TMI 54 - KERALA HIGH COURTProceeding u/s 158BD - search u/s 132 - Mandation for AO to record his satisfaction that undisclosed income belongs to any person - HELD THAT:- In the instant case, admittedly, the Assessing Officer had not recorded his satisfaction about the undisclosed income of the appellant. The result is that the entire proceedings initiated against the appellant stand vitiated. The Tribunal has found that only a prima facie satisfaction of the undisclosed income of the person, other than the person with respect to whom the search was made, is sufficient. The Tribunal has found that the entries in the documents seized during the search and the statement of the appellant recorded on the same day revealed that the appellant had undisclosed income and such a prima facie satisfaction by the authority concerned was sufficient. True, what is required is only a prima facie satisfaction of the Assessing Officer of the undisclosed income of the person other than the person with respect to whom the search was conducted. But, the crucial aspect is recording of such satisfaction by the Assessing Officer. We hold that it is mandatory for the Assessing Officer under Section 158BD of the Act to record his satisfaction about the undisclosed income of the person other than the person with respect to whom the search was conducted. Preparation of satisfaction note by the Assessing Officer is sine qua non before transmission of records by him to the other Assessing Officer who has jurisdiction over such other person. The substantial question of law is answered in favour of the assessee and against the revenue.
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