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2017 (3) TMI 89 - HC - Income TaxAssessment u/s 153C - non recording of satisfaction - Held that:- It is not disputed that the search was carried out at the premises and in the case of one another person, Shri Vikas R. Patel. There was no satisfaction recorded by the Assessing Officer in the case of the searched person, Shri Vikas R. Patel before initiating Section 153 proceedings, and therefore, the mandatory requirement, before initiating the proceedings under Section 153C of the Act in the case of the assessee (other than the searched person) has not bee followed. It was the case on behalf of the revenue that separate satisfaction note was recorded by the Assessing Officer. However, as per catena of decisions of the Hon’ble Supreme Court as well as this Court, same is not sufficient to initiate the proceedings under Section 153C of the Act in the case of the assessee (other than the searched person). CBDT has also issued Circular No.24/2015 dated 31/12/2015 in which it is observed that recording of satisfaction note is prerequisite and the satisfaction note must be prepared by the AO before he transmits the record to the other AO who has jurisdiction over such other person. - Decided in favour of assessee
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