AI Drafter 
TaxTMI 
TaxTMI 
2016 (5) TMI 791
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....he common order passed by the Tribunal in Appeal Nos.174-180/Bang/2010, whereby the Tribunal has passed a common order for the respective assessment years as concluded in the operative portion of the impugned order. 3. The brief facts of the case are that a search was conducted under Section 133A of the Income Tax Act, 1961 (hereinafter referred to as "the Act") in the case of M/s. Arihant Aluminium Corporation decided on 20/4/2006. The Assessing Officer initiated action and issued notice under Section 153A read with Section 153C of the Act for the purpose of re- assessment of the income under Section 153A of the Act. The appellant had filed return of income in response to the notice under Section 153A of the Act and declared the income ....
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.... 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 w....
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....n the case of M/s Calcutta Knitwears in its detailed judgment in Civil Appeal No.3958 of 2014 dated 12.3.2014(available in NJRS at 2014-LL-0312-51) has laid down that for the purpose of Section 158BD of the Act, recording of a satisfaction note is a prerequisite and the satisfaction note must be prepared by the AO before he transmits the record to the other AO who has jurisdiction over such other person u/s 158BD. The Hon'ble Court held that "the satisfaction note could be prepared at any 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; or (b) in the course of the assessment proceedings under section 158BC of the Act; or (c) immediate....
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....edings 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 required." 8. The circular further goes to the extent that, if in the pending matters, the guidelines laid down by the Apex Court of recording of satisfaction note is not met with, such litigation should be withdrawn or not pressed or the appeal should also not be filed. 9. As all the appeals are pending before this Court, learned counsel appearing for respondent-Revenue could not dispute the applicability of the circular even in the present cases. The resultant effect would be that, the requirements of recording of satisfaction no....
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....ng for the AY 2007-08." 10. The aforesaid shows that, there is no examination by the Tribunal on the aspects of satisfaction note as referred to above which is insisted by the circular based on the decision of the Apex Court. 11. Learned counsel appearing for the Revenue however did contend that, as per some noting available 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, lea....
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....oresaid findings of the Tribunal, the assessee has preferred the present appeals and has also raised the questions for which, appeals were admitted. But, considering the facts and circumstances, it appears to us that, the requirements of satisfaction note at the time of initiation of assessment or during the assessment or at the time of conclusion of the assessment would go to the root of the matter and if ultimately found by the Tribunal that aforesaid requirement was not complied, everything would fall to the ground and the assessments made would be rendered illegal. But, at the same time, if the Tribunal finds that, all requirements were met under Section 153-C, then the question may further arise for consideration on the aspects of perc....