TMI Blog2015 (4) TMI 82X X X X Extracts X X X X X X X X Extracts X X X X ..... on for invoking section 158D of the Act to the assessee. On receipt of such reasons, assessee shall be entitled to file objections which shall be disposed-off by the Assessing Officer by way of a speaking order and only thereafter he shall proceed to pass a fresh assessment in accordance with law. - Decided in favour of assessee for statistical purposes - ITA No.1706/PN/2013 - - - Dated:- 21-1-2015 - SHRI G.S. PANNU AND SHRI R.S. PADVEKAR, JJ. For the Appellant : Mr. M. K. Kulkarni For the Respondent : Mr. B. C. Malakar ORDER PER G. S. PANNU, AM The captioned appeal by the assessee is directed against an order of the Commissioner of Income Tax (Appeals)-III, Pune dated 29.07.2013 which, in turn, has arisen f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Block period comprising of 01.04.1995 to 11.10.2002 by invoking section 158BD of the Act. The provisions of section 158BD of the Act have been invoked as a consequence of a search action u/s 132(1) of the Act carried out on 12.10.2001 in the case of M/s Rajashree Enterprises (Prop. Shri Ramanlal Shah) and M/s Maheshwari Financiers (Prop. Shri Mahendra Shah) at Adoni, Andhra Pradesh. The Ld. Representative contended that assessments in terms of section 158BC of the Act were finalized in the cases of Shri Ramanlal Shah, and Shri Mahendra Shah. The claim of the appellant is that the provisions of section 158BD of the Act could be invoked in the hands of the assessee only after recording the mandated satisfaction. It is pointed out that the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... isfaction of the Assessing Officer which has been recorded and that such person must be given a reasonable opportunity to put-forth his objection to the same. The Ld. Representative pointed out that in the present case, the satisfaction Note has not been put across to the assessee which is clearly emerging from the discussion made by the CIT(A) in para 4.1 of the impugned order. In the above context, we have perused the following discussion in the order of the CIT(A) at para 4.1 :- 4.1 I have also perused the satisfaction note of the Assessing Officer (ACIT, Central Circle 2(3), Pune) of Rajashree Enterprises/ Maheshwari Financiers which was enclosed by way of a covering letter dated 06.04.2004 addressed to the Assessing O ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... contains the detailed working of the loan entries and the interest thereon as found in the books of Maheshwari Financiers and therefore, it can be concluded that the satisfaction by the Assessing Officer of the searched person is duly recorded, prior to initiation of action u/s 158BD r.w.s. Sec. 158BC. 7. The aforesaid discussion reveals that after examining the record the CIT(A) has come to a conclusion that though satisfaction note was recorded by the Assessing Officer yet a copy of the same has not been provided to the assessee. The Hon ble Delhi High Court in the case of Janki Exports International (supra) was considering the plea of the assessee regarding issuance of notice u/s 158BD of the Act. Though the challenge to the notice ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Income-tax Act is issued, the proper course of action for the noticee is to file a return and if he so desires, to seek reasons for issuing notices. The Assessing Officer is bound to furnish reasons within a reasonable time. On receipt of reasons, the noticee is entitled to file objections to issuance of notice and the Assessing Officer is bound to dispose of the same by passing a speaking order. 7. Using the same parity of reasoning, we direct the Assessing Officer to supply the reason recorded for arriving at a satisfaction to the petitioner within a reasonable time upon the petitioner filing a return as required by the impugned notice. On receipt of the same, the petitioner would be entitled to file objections to the issuance of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e matter back to the file of the Assessing Officer who shall supply the reasons recorded for arriving at the satisfaction for invoking section 158D of the Act to the assessee. On receipt of such reasons, assessee shall be entitled to file objections which shall be disposed-off by the Assessing Officer by way of a speaking order and only thereafter he shall proceed to pass a fresh assessment in accordance with law. 10. The Ld. Departmental Representative raised a plea that the CIT(A) has already examined the record and is satisfied with the satisfaction recorded, thus, there was no justification for remanding the matter, on the basis of the judgement of the Hon ble Delhi High Court in the case of Janki Exports International (supra). In ou ..... X X X X Extracts X X X X X X X X Extracts X X X X
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