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TMI Blog2016 (9) TMI 851X X X X Extracts X X X X X X X X Extracts X X X X ..... been preferred by the assessee against the order dated 04/03/2009 passed by the assessee against the order dated 04/03/2009 passed by the ld. CIT(A's)-II, New Delhi and pertains to AY 2006-07. ITA No. 2322/Del/2009 is the cross appeal preferred by the Department for AY 2006-07. Since all the three appeals were heard together they are being disposed of through this common order. 2. The brief facts of the case are that search u/s 132 of the Income Tax Act, 1961 (in short 'The Act') was conducted at the business/residential premises of the Directors of the asseessee company on 10/11/2005. The assessments for both the years were completed u/s 153C/143(3) of the Act in which substantial additions were made. For both the years the assessee rais ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... On the issue of recording of satisfaction, the ld. CIT(A's) noted that in this case the AO of the persons searched and the AO of the third party were one in the same person and hence the requirement of a separate satisfaction was not mandatory. Accordingly, the ld. CIT (A) held that the proceedings u/s 153C/143(3) were valid and that the assessee's legal objection was unsustainable. On merits the ld. CIT (A's) gave some relief to the assessee. 3. Now the assessee has preferred an appeal before the ITAT and although numerous grounds have been raised for both the assessment years, the ld. AR chose to address the Bench on ground no. 1 only which challenges the invocation of provision of sec. 153C. Ground no. 1 is common to both the appeals an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is juncture it will be a relevant to reproduce Circular No. 24/2015 issued by the CBDT which reads as under: "CIRCULAR NO. 24/2015 F.No.279/Misc./140 /2015/ITJ Government of India Ministry of Finance Department of Revenue Central Board of Direct Taxes New Delhi, 31 st December, 2015 Subject: Recording of satisfaction note under section 158BD/153C of the Act - reg.- 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 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... satisfaction note should also be decided in the light of the above judgement. 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. (sd/-). 7. On going through the relevant records, especially the impugned order, it is undisputed that no satisfaction was recorded by the AO of the searched persons in this case. A communication from the ACIT to the ld. CIT-DR IV, ITAT Delhi also confirms the contention of the assessee. It is also undoubted that the Circulars issued by the CBDT have a binding force at least as far as the assessee's interest are to be safe guarded. Par ..... X X X X Extracts X X X X X X X X Extracts X X X X
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