Commissioner of Income-tax, Central Circle, Chennai v. JF Chit Funds Pvt. Ltd
|Commissioner of Income-tax, Central Circle, Chennai
|JF Chit Funds Pvt. Ltd.
|HIGH COURT OF MADRAS
|Date of Order
|1996-97, 1997-98, 1998-99, 1999-00, 2000-01, 2001-02, 01/04/2002-15/11/2002
|recording of satisfaction • satisfaction note • strict compliance • reasonable time • searched person
|Respondent APPEAL under Section 260A of the Income Tax Act, 1961 against the order dated 02.3.2012 made in IT(SS)A.No. The appeal has been admitted on 24.9.2013 on the following substantial questions of law : i. Whether, on the facts and in the circumstances of the case, the Income Tax Appellate Tribunal was right in quashing the assessment order holding that the Assessing Officer has not recorded the reasons before initiating proceedings under Section 158BD of the Income Tax Act And ii. Whether, on the facts and in the circumstances of the case, the Appellate Tribunal was right in quashing the assessment order without noting that there is no time limit prescribed in the Income Tax Act for recording satisfaction note for issuing notice under Section 158BD and the Assessing Officer has initiated the proceedings within the reasonable time 4. 557 of 2013 circular, it has been stated that the guidelines of the Hon'ble Supreme Court in the case of M/s.Calcutta Knitwears Civil Appeal No.3958 of 2014 dated 12.3.2014 with regard to recording any satisfaction note were brought to the notice of all for strict compliance and it has been clarified that even if the Assessing Officer of the searched person and the 'other person' is one and the same, then also, he is required to record his satisfaction as has been held by the Courts. Taking note of the said decision, the Board directed that pending litigation with regard to recording of satisfaction note under Section 158BD/153C of the Act should be withdrawn/not pressed if it does not meet the guidelines laid down by the Hon'ble Apex Court. The above circular fully covers the issue raised in the case on hand and the appeal has to be dismissed. In the light of the above, the tax case appeal filed by the Revenue is dismissed and the substantial questions of law framed are left open.