TMI Blog2016 (5) TMI 791X X X X Extracts X X X X X X X X Extracts X X X X ..... the other aspects namely of the estimated gross profit at the rate of 7% or 6% and further addition of the amount of liability to pay interest to appellant-assessee. Considering the above it appears to us when we are inclined to relegate the matter to the Tribunal on the issue which goes to the root of the matter, it would be premature on our part to address ourselves on the aspects of the assessment already made and considered by the Tribunal in the impugned order. Hence,the impugned orders passed by the Tribunal are set aside with a further direction that all appeals shall stand restored to the Tribunal. The Tribunal shall examine the aspects of satisfaction note if any, and whether the same can be termed sufficient compliance or not for the assessment to be initiate d or to be made or finalized under Section 153C of the Act. - ITA No. 447/2010 C/W ITA Nos. 446/2010, 454/2010, 449/2010, 448/2010 & ITA Nos.450/2010, 455-56/2010 - - - Dated:- 11-3-2016 - MR. JAYANT PATEL AND MRS. B.V.NAGARATHNA JJ. For the Appellant: Sri. A. Shankar M. Lava, Advocates For the Respondent: Sr i. K.V. Aravind, Advocate JUDGMENT As in all the appeals commo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ibunal vide common order dated July 30, 2010 partly allowed the appeal. Under the circumstances, the present appeals are filed before this Court. The appeals have been preferred by raising the following substantial questions of law: 1. Whether the authorities below justified in law in holding that the assessment made under section 143(3) read with section 153C of the Act is valid i n law and further whether the notice issued under Section 153C of the Act is valid in law without recording satisfaction on the facts and circumstances of the case? 2. Whether the authorities below are justified in law in holding that there was valid assessment when notice under Section 143(2) was not issued within twelve months from the end of the month in which the return is furnished pursuant to 153A notice further the dropping of 153A proceeding and initiating 153C proceedings are not in accordance with law? 3. Whether the authorities below are justified i n law in issuing notice under section 153C on the appellant without valid search initiated against the main per son under section 132 of the Act on 20.04.2006 on the f acts and circumstance of the case? 4. Whet ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Supreme Court as referred to in para 2 above, with regard to recording of satisfaction note, may be brought to the notice of all for strict compliance. It is further clarified 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 h s satisfaction as has been held by the Courts. 5. In view of the above, filing of appeals on the issue of recording of satisfaction note should also be decided in the light of the above judgment. Accordingly, the Board hereby directs that pending litigation with regard to recording of satisfaction note under section 158BD/153C should be withdrawn/not pressed if it does not meet the guidelines laid down by the Apex Court. 7. As per the aforesaid circular, at the time of o r along with the initiation proceedings against the search under Section 158C or in the course of assessment proceedings under Section 158BC of the Act or immediately after the assessment proceedings are completed under Section 158BD of the Act recording of satisfaction is required. Further, even in respect of all other persons than the searched person such recording of satisfaction by AO is req ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lable in the file, it is possible to discern that the satisfaction note is recorded. In furtherence to his submission, he did rely upon the notings in the file. In order to make it as a part of the record in the present appeal, we have directed learned counsel appearing for respondent-revenue to put the so-called `note on record, for which, learned counsel appearing for the revenue has undertaken to do so. However, learned counsel appearing for appellant-assessee contended that so- called notes are no satisfaction notes in the eye of law and therefore cannot be the basis in any case for confirmation of the assessment already made nor can be said as the mandatory procedure is followed in the instant case. 12. In our view, as the Tribunal has neither examined the records of all the cases before the AO nor any finding is recorded on the aspects of the satisfaction note and, as the Tribunal is the final fact finding authority, we fi nd that the matter should be relegated to the Tribunal for examining the said aspect, namely whether there was compliance of the requirement of satisfaction recording before final conclusion was drawn and as to whether the assessment made under Secti ..... X X X X Extracts X X X X X X X X Extracts X X X X
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