Guidelines regarding the provisions of section 153C of the Income-tax, 1961. - Income Tax - F. No. 299/128/2013-IT(lnv.lll)/1559

F. No. 299/128/2013-IT(lnv.lll)/1559 Government of India Ministry of Finance Department of Revenue (Central Board of Direct Taxes) New Delhi, Dated : 03.04.2014 To All Chief Commissioners of Income Tax (CCA) All Directors General of Income Tax (Inv.) All Chief Commissioners of Income tax (Central) The Director General of Income Tax (Exemption) The Director General of Income Tax (International Taxation) Madam/Sir, Sub : Guidelines regarding the provisions of section 153C of the Income-tax, 1961. Kind Reference is invited to the Board s guidelines in F. No.-299/128/2013-IT(lnv. III) dated 31.03.2014 on the above subject. 2. Attention is invited to para- 2.3 and 2.4 of the said guidelines wherein recording of the satisfaction by the AO of the searched person has been discussed. 3. In this regard, the undersigned is directed to refer to the judgment and order of the Hon. Supreme Court dated 12th March, 2014 in the case of Commissioner of Income Tax - III V/s M/s Calcutta Knitwears, Ludhiana, Civil Appeal No. 3958 of 2014 [SLP(C)No. 10542 of 2011] in the context of section 158BD of the Act, wherein the Hon ble Court held as under: 44. In the result, we hold that for the purpose of 158BD of the Act a satisfaction note is sine qua non and must be prepared by the Assessing Officer before he transmits the records to the other Assessing Officer who has jurisdiction over such other person. The satisfaction note could be prepared at either of the following stages: (a) at the time of or along with the initiation of proceedings against the searched person under section 158BC of the Act; (b) along with the assessment proceedings u/s 158BC of the act; and c) immediately after the assessment proceedings are completed under section 158BC of the Act of the searched person. 4. The ratio of the above judgment should be kept in mind while dealing with the said issues under the provisions of section 153C of the Act. 5. This may be brought to the notice of all concerned. Yours faithfully, (S. L. Anuragi) Under Secretary (Inv.-III) CBDT, New Delhi