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2019 (2) TMI 155 - ITAT CHENNAICondonation of delay - delay of 2969 days - no satisfaction note was recorded by the AO at the time of issue of notice u/s.153C - Held that:- In the present case, it is a case of the assessee that no satisfaction note was recorded by the AO at the time of issue of notice u/s.153C. Now, it is settled principle of law that recording of satisfaction by the AO at the time of issuance of notice u/s.153C is a sine qua non for getting jurisdiction over the seized documents. In case, a satisfaction note was not recorded, the AO would not get jurisdiction for the seized materials received by him. This position of law was explained by the Hon’ble Apex Court in the context of provision of Sec.158BD of the Act in the case of CIT v. Calcutta Knitwears [2014 (4) TMI 33 - SUPREME COURT]. The CBDT vide its Circular No.24/2015 dated 31.12.2015 accepted that the same position holds good even in the context of provisions of Sec.153C of Act. In the present case, the appellant had filed the copies of ordersheet entries of AO indicating that no satisfaction note was recorded by the Assessing Officer. Even the CIT(DR) also filed copies of the ordersheet entries, wherein, no satisfaction note was recorded. Therefore, this material conclusively established that the Assessing Officer has no jurisdiction to proceed against the appellant under the provisions of Sec.153C of the Act. Thus, in the interest of advancing substantial justice to the appellant, the delay of 2969 days can be condoned accordingly. Jurisdiction of AO u/s.153C - no satisfaction note was recorded by the AO as well as the Assessing Officer of searched person saying that the incriminating material belonging to the appellant were found during the course of search and seizure proceedings in the case of Shri D. Mayandi & others - Held that:- We must mention here that though the Ld.CIT(DR) in his covering letter had stated that copy of the satisfaction note is furnished, in fact, what is furnished is only a copies of ordersheet entries of Assessing Officer which are same as furnished by the appellant. Therefore, keeping in view the CBDT Circular No.24/2015 dated 31.12.2015 and the judgment of the Hon’ble Supreme Court in the case of Calcutta Knitwears, supra, in the absence of such satisfaction note recorded by the Assessing Officer, the Assessment Order passed is null and void ab initio and accordingly, we hold that the Assessment Orders passed cannot be sustained in the eyes of law. - Decided in favour of assessee.
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