TaxTMI 
TaxTMI 
2024 (12) TMI 1677
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....ate Tribunal (for short 'ITAT'), whereby the ITAT has decided the two cross appeals filed by the parties herein. 2. The challenge in this appeal by the revenue is in ITA No.327/Bang/2018 for Assessment Year 2007-08, which appeal has been allowed in favour of the assessee by the ITAT, by following judgment of this Court dated 28.04.2016 in the case of COMMISSIONER OF INCOME-TAX AND ANOTHER VS IBC KNOWLEDGE PARK P. LTD., reported in (2016) 385 ITR 346, where in the ITAT has in paragraph Nos.9 and 10 of the impugned order stated as under: "9. We noticed that the learned CIT(A) has followed the decision rendered by the Hon'ble High Court of Karnataka in assessee's own case. For the sake of convenience, we extract the relevant portio....
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....ard of Direct Taxes has also issued circular dated December 31, 2015, vide No. 24 of 2015.The relevant extract of the circular for ready reference can be extracted as under (see (2016) 380 ITR (St.) 32 ): "The issue of recording of satisfaction for the purposes of section 158BD/153C has been subject matter of litigation. 2. The hon'ble Supreme Court in the case of Calcutta Knitwears in its detailed judgment in Civil Appeal No. 3958 of 2014, dated March 12, 2014 (available in (2014) 362 ITR 673 (SC) ; 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 Assessing Officer before he tran....
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....he 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hereby directs that pending litigation with regard to recording of satisfaction note under section 158BD/153C should be withdrawn/not pressed if it does not meet the guidelines laid down by the apex court." As per the aforesaid circular, at the time of or along with initiation of the proceedings, against the searched person or third party under section 153C or in the course of assessment proceedings under section 153C of the Act or immediately after the assessment proceedings are completed under section 153C of the Act, recording of satisfaction is required. 55. If the observations made by the Tribun....
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....were incriminating in nature and prima facie represented undisclosed income." 10. There is no dispute that there is parity of facts between the years decided by the Hon'ble jurisdictional Karnataka High Court and the years under consideration. Further the same provisions of sec.153C are applicable to the years under consideration. Admittedly, no specific observation has been made in the satisfaction recorded by the Assessing Officer that the incriminating material shows availability of any undisclosed income. Hence the decision rendered by Hon'ble Karnataka High Court in the assessee's own case (referred supra) shall squarely apply to both the years under consideration. 3. The appeal raises the following substantial questions of....