TMI Blog2017 (1) TMI 1634X X X X Extracts X X X X X X X X Extracts X X X X ..... ecorded any satisfaction before transmitting the record to the other Assessing Officer who has jurisdiction over the person u/s 153C of the Act. AO who has made the assessment order has recorded satisfaction, but the Assessing Officer who has searched, has not recorded any satisfaction, therefore, as per the decision of the Hon'ble Supreme Court and as per the CBDT Circular No. 24/2014 dated 31st December, 2015 as pending litigation with regard to recording of satisfaction note under section 158BD/153C should be withdrawn/not pressed if it does not meet the guidelines laid down by the Apex Court. - Decided in favour of assessee. - I.T.A. No.235/Ind/2016 - - - Dated:- 10-1-2017 - Shri D.T. Garasia And Shri O.P. Meena, JJ. Assessee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 88051011000023 3 BOI 2007-08 29,89,000 Vishnu Sharma 16.5.2006 88051011000022 9 BOI 2007-08 1058000 Vrindawan Ishwarlal 28.9.2006 88151011000028 4 BOI 2007-08 8,80,000 Asharam 16.5.2006 88051011000023 0 BOI 2007-08 462000 Shri Nathulal 2007-08 1,10,000 During the course of search proceedings and assessment proceedings it was found that Maansingh Chouhan is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... which were recovered under the search. The cheques were found from Mrs. Rozina Kumrawat belonging to third party who is the assessee. The learned counsel for the assessee submitted that the search was conducted at the premises of third party and if the search is conducted on the third party then the Assessing Officer is duty bound to record satisfaction note. The learned counsel for the assessee submitted that as per section 153C notice can be issued by the Assessing Officer where he is satisfied that during search operation in the case of other persons, money, bullion, jewellery or other articles or things or books of accounts or documents seized pertained to other persons to whom such notice u/s 153C of the Act is issued and as per secti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rded any satisfaction before handing over record to another Assessing Officer who has jurisdiction over the assessee. During the course of hearing, the learned counsel for the assessee submitted that though the assessee has requested the Assessing Officer to provide the copy of satisfaction recorded by the search party from whom the alleged papers were found. The learned DR was given ample opportunity to provide the same. The matter was kept for hearing on 23.11.2016 to call for the record, the satisfaction recorded by the search party and again the matter was adjourned to 30.11.2016 then again the matter was adjourned to 21.12.2016 but the learned DR could not bring any satisfaction before us. Therefore, when there is no satisfaction, as p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... any satisfaction, therefore, as per the decision of the Hon'ble Supreme Court and as per the CBDT Circular No. 24/2014 dated 31st December, 2015 it is held as under :- 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. Moreover, we have also decided a similar issue in the case of Ishar Overseas; IT(SS)A Nos.126 127/Ind/2011 dated 18.5.2016 wherein it was held as under :- 10. In the above decision, it ha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... satisfaction by the Assessing Officer of the person searched and other person is not found recorded, the Department should not press that matter in appeal. Thus, keeping in view rival submissions in light of judicial pronouncements and particularly the decision of Hon ble Jurisdictional High Court of M.P. (supra) and CBDT circular (supra), assessments in the cases of both the present assessees are held as illegal and void-ab-initio. Accordingly, for assessment years 2003-04 2005-06 in the case of Ishar Overseas (P) Ltd. and for the assessment year 2002-03 in the case of Bhatia Coal Sales Ltd., the grounds raised by the assessees relating to applicability of section 153C are allowed. We, therefore, following the above order, hold that ..... X X X X Extracts X X X X X X X X Extracts X X X X
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