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2020 (1) TMI 85 - ITAT DELHIAssessment u/s 153C - satisfaction note prepared prior to the issuance of notice to the searched person - HELD THAT:- In this case, for assessment year 2007-08, the notice u/s 153C has been issued prior to the issuance of notice u/s 153A to the searched person. The CBDT Circular No.24/2015 dated 31.12.2015 has instructed that guidelines issued by the Hon’ble Apex Court in the case of Calcutta Knitwears [2014 (4) TMI 33 - SUPREME COURT] will also be applicable to proceedings u/s 153C and, therefore, we are afraid that the Revenue has no case in terms of the judgment of the Hon’ble Apex Court in the case of CIT vs. Calcutta Knitwears (supra) and the CBDT Circular No.24/2015 dated 31.12.2015. Since, undisputedly, the satisfaction note in the case of the assessee was prepared prior to the issuance of notice to the searched person, the assessment for assessment year 2007-08 becomes null and void because the assumption of jurisdiction u/s 153C is defective. Accordingly, we have no option but to hold that the assessment framed for assessment year 2007-08 was without jurisdiction and is, therefore, unsustainable in law. Non issuance of notice u/s 153C - AY 008-09 - HELD THAT:- We note that the impugned assessment order has been passed u/s 143(3) and no notice u/s 153C has been issued although this year falls within the period of six years when counted from the date of recording of satisfaction note which is deemed date of search. The Assessing Officer should have framed the assessment u/s 153C of the Act for assessment year 2008-09 also and should have at the time of initiating the proceedings against the assessee issued notice u/s 153C of the Act which has not so be done in this case. The issuance of notice u/s 153C is mandatory and is a pre-condition if the case falls within the block period of six years. The assessment order for assessment year 2008-09 is, therefore, unsustainable in the eyes of law. Accordingly, we are left with no option but to quash the assessment for assessment year 2008-09 also. Penalty u/s 271(1)(c) - We have decided the quantum appeal for assessment year 2008-09 in favour of the assessee and have quashed the assessment, the consequential penalty imposed u/s 271(1)(c) also stands deleted
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