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Commissioner Of Income Tax-Iii vs M/S. Calcutta Knitwears, Ludhiana on 12 March, 2014

From the conjoint reading of the provisions of section 153C, the decision of the Hon'ble Supreme Court in the case of CIT vs M/s Calcutta Knitwears (supra) and CBDT Circular No.24/2015, it is very clear 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 separate satisfaction as required u/s 153C of the Act. In this case, on perusal of satisfaction note furnished by the Ld. DR, we find that the said satisfaction note was taken from assessment record of the assessee, which is evident from the copy of the note filed by the Ld. DR that it is an order sheet entry in the name of M/s Karnataka Strips Ltd. and the heading states that reasons recorded prior to issue of notices u/s 153C of the Act. The said satisfaction note was recorded by the AO having jurisdiction over other person i.e. in this case, the assessee, before issue of notice u/s 153C of the Act. Therefore, we are of the considered view that satisfaction as required u/s 153C of the Act, before transmitting books of accounts or other assets belongs to or relates to other than the searched person was not recorded by the AO of searched person as required u/s 153C of the Act, consequently, the whole proceedings 20 ITA No.1547/Mum/2015 Vivil Investment Pvt.Ltd.
Supreme Court of India Cites 45 - Cited by 236 - Full Document
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