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2017 (1) TMI 1627 - HC - Income TaxValidity of proceedings u/s 158BD - proceedings initiated against the assessee pursuant to a search and seizure action under section 132 against Bimbis group of concerns - whether at the time of initiating the proceedings under section 158BC for the completion of the assessments of the searched person under section 132 or 132A of the Act or during the course of the assessment proceedings under section 158BC or after completion of the proceedings under section 158BC? - Held that:- The issue arising in this case as to whether non-recording of satisfaction as provided under section 158BD of the Act in a case where the AO is common did not arise for consideration of the apex court and therefore we are unable to accept the plea of the learned senior counsel for the assessee that the judgment in Calcutta Knitwears (2014 (4) TMI 33 - SUPREME COURT) impliedly overruled the judgment in Panchajanyam (2010 (11) TMI 366 - KERALA HIGH COURT). Therefore, the judgment in Panchajanyam being that of a Co-ordinate Division Bench of this court, against which though an appeal filed by the assessee is pending before the apex court, is a precedent binding on this court. Therefore, since the AO is common, the reasoning of the Tribunal that non-recording of reason by the Assessing Officer is fatal to the assessment cannot be sustained. Therefore, answering the questions of law framed by the Revenue in its favour, the appeal is allowed and the order passed by the Tribunal is set aside.
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