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2019 (4) TMI 700 - AT - Income TaxAssessment u/s 153A/153C - Non recording mandatory satisfaction - recording of satisfaction as the AO of the searched person vs recording mandatory satisfaction as AO third person i.e. assessee - HELD THAT:- The decision in the case of Ganpati Fincap Services ltd. [2017 (5) TMI 1425 - DELHI HIGH COURT] holds the field and the recording of satisfaction not by the AO of the searched person qua the other person prior to the initiation of the proceedings against the other person is a sine qua non for triggering the proceedings against the other person u/s 153C and, therefore, in the absence of such recording of satisfaction by the AO of the searched person qua the other person, assumption of jurisdiction by the AO by issuance of notice u/s 153C cannot be sustained. There do not have to be two separate satisfaction notes prepared by the AO of the searched person where such person happens to the AO of the other person but one satisfaction note by such AO qua the other person would meet this requirement. However, there is no such satisfaction recorded by the AO of the searched person qua the other person - assessment of jurisdiction for issuance of notice u/s 153C of the Act cannot be sustained and, on that ground, the assessee succeeds in this appeal. - Decided in favour of assessee.
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