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2016 (9) TMI 851 - ITAT DELHIValidity of proceedings u/s 153C/143(3) - absence of satisfaction note - Held that:- As it is undisputed that no satisfaction was recorded by the AO of the searched persons in this case. A communication from the ACIT to the ld. CIT-DR IV, ITAT Delhi also confirms the contention of the assessee. It is also undoubted that the Circulars issued by the CBDT have a binding force at least as far as the assessee’s interest are to be safe guarded. Para 4 of the circular specifically directs that even if the AO of the searched person and the other person is one and the same, then also he is required to record his satisfaction. In the light of the factual matrix of the case duly supported by the circular, we find that the assessee has a strong case on this issue. We, accordingly, hold that proceedings u/s 153C/143(3) for both the assessment years under appeal were void ab initio as the fundamental requirement of recording the satisfaction note was not complied with. Hence, the assessments for both the years are quashed - Decided against revenue
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