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2016 (8) TMI 45 - AT - Income TaxValidity of assessment u/s 153C - necessity of satisfaction note for initiating the action - Held that:- As it is apparent that the CIT (Appeals) has reproduced the reasons recorded/satisfaction note for initiating the action under Section 153C of the Act however, it is not clear whether the satisfaction was recorded in the assessment proceedings of the searched person or it was recorded by the Assessing Officer at the time of initiating the proceedings under Section 153C of the Act. As we have discussed in foregoing paras that recording of satisfaction by the Assessing Officer of the searched person either during the assessment proceedings or just on completion of the assessment proceedings of the searched person is a mandatory requirement before handing over the seized material for initiating the proceedings under Section 153C of the Act. Neither the CIT (Appeals) has given any finding about the stage and assessment proceedings in which the alleged satisfaction is recorded nor any record has been produced before us to ascertain the correct factual position of the satisfaction recorded by the Assessing Officer. Accordingly, in the facts and circumstances of the case, we set side this issue to the record of the CIT (Appeals) for deciding the same by giving a detailed factual finding as well as the validity of assessment under Section 153C of the Act to the extent of the enhancement of assessment made by the CIT (Appeals). Since the jurisdictional issue has been set aside to the record of the CIT (Appeals) for fresh adjudication, therefore the other issues raised by the assessee are kept open.
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