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2017 (9) TMI 1898 - AT - Income TaxRevision u/s 263 - whether the legality or validly to the original order passed u/s 153C can be challenged by the assessee in this appeal contesting the exercise of revision jurisdiction u/s 263? - HELD THAT:- As now settled proposition of law that in a case where the AO of the searched person as well as that other person, in case of whom the assessment u/s 153C is contemplated, is one and the same the satisfaction would have to be recorded separately qua the searched person. Even assuming that no handing over of documents is required, recording of satisfaction is a must, as, that is the foundation, upon which subsequent proceedings against other person are initiated. The handing over of documents etc. in such a case may or may not be of much relevance but the recording of satisfaction is still required and in fact is mandatory. As been categorically held so in the CBDT circular No. 24/2015 (supra). Even the CBDT has directed the concerned officers that pending litigation with regard to recording of satisfaction note u/s 158BD/under section 153C should be withdrawn/not pressed, if it does not meet the guidelines laid down by the Apex Court. The circular of the Board, though is not binding on this Tribunal but same is binding on the department. In view of the CBDT Circular No. 24 of 2015 we have no hesitation to hold that because of the legal proposition laid down by the various courts and in the light of CBDT circular, the very assuming of jurisdiction and initiation of assessment proceedings in the case of the assessee under section 153C of the Act was bad in law and subsequent assessment order passed u/s 153C is null and void and is to be treated as nonest in the eyes of law. Since the base order passed u/s 153C of the Act has been held to be null and void, the subsequent revision order passed by the CIT u/s 263 of the Act is also accordingly held to be void. The assessee therefore, succeeds on the legal issue. - Decided in favour of assessee.
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