AI Drafter 
TaxTMI 
TaxTMI 
2017 (1) TMI 1634
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....ngs bank account no. 10921 in Bank of India, Dewas. The assessee has not shown any interest income of Rs. 669/- in his return of income. The assessee has received unsecured loan from the following persons :- Name of loan donor Date of loan given Account no. of loan donor Relevant assessment year Amount in Rs. Shruti Construction company 7.6.2006 0362000024771 HDFC Bank 2007-08 2500000 Indersingh 4.12.2006 2007-08 950000 Mehtab Singh 4.12.2006 2007-08 950000 Nasrendra s/o Bapulal Chouhan 4.12.2006 2007-08 600000 Ramratan Sitaram 18.5.2006 88051011000023 3 BOI 2007-08 29,89,000 Vishnu Sharma 16.5.2006 88051011000022 9 BOI ....
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....the appeal of the assessee. 3. Before us, the learned counsel for the assessee has taken a legal ground that as per section 53C of the Act before issuing the notice to the assessee, the search party has not recorded any satisfaction. There was search at the premises of Mrs. Rozina Kumrawat and in that premises two unsigned cheques were found 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 subm....
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.... before he transmikts the record to the other Assessing Officer who has jurisdiction over such other person u/s 158BD/BC. Therefore, in this case during the course of hearing, the learned counsel for the assessee submitted that in this case the Assessing Officer who has searched in the premises of Mrs. Rozina Kumrawat on 20.10.2008 has not recorded 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....
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....ho has made the search has recorded any satisfaction before transmitting the record to the other Assessing Officer who has jurisdiction over the person u/s 153C of the Act. The learned DR submitted that the Assessing Officer 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 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 ....
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....d by Indore Bench in the case of ACIT vs. Chirchind Hydro Ltd. (2011) 17 ITJ 197 (Indore). We have also taken note of a circular no.24/2015 dated 31.12.2015, issued by the CBDT, in which, the Board, following the decision of Hon'ble Supreme Court in case of M/s. Calcutta Knitwears (Civil Appeal No. 3958 of 2014 dated 12.3.2014), has directed that where the 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 asse....