Commissioner of Income-tax, Central Circle, Chennai v. JF Chit Funds Pvt. Ltd
[Citation -2020-LL-0615-22]

Citation 2020-LL-0615-22
Appellant Name Commissioner of Income-tax, Central Circle, Chennai
Respondent Name JF Chit Funds Pvt. Ltd.
Court HIGH COURT OF MADRAS
Relevant Act Income-tax
Date of Order 15/06/2020
Assessment Year 1996-97, 1997-98, 1998-99, 1999-00, 2000-01, 2001-02, 01/04/2002-15/11/2002
Judgment View Judgment
Keyword Tags recording of satisfaction • satisfaction note • strict compliance • reasonable time • searched person
Bot Summary: 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that pending litigation with regard to recording of satisfaction note under Section 158BD/153C of the Act should be withdrawn/not pressed if it does not meet the guidelines laid down by the Hon'ble Apex Court.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.


TCA.No.557 of 2013 In High Court of Judicature at Madras Dated : 15.6.2020 Coram : Honourable Mr.Justice T.S.SIVAGNANAM and Honourable Mrs.Justice PUSHPA SATHYANARAYANA Tax Case Appeal No.557 of 2013 Commissioner of Income Tax, Central Circle, Chennai ...Appellant Vs M/s.JF Chit Funds Pvt. Ltd., Chennai-1. ...Respondent APPEAL under Section 260A of Income Tax Act, 1961 against order dated 02.3.2012 made in IT(SS)A.No.27/Mds/2011 on file of Income Tax Appellate Tribunal, Chennai 'D' Bench for block period 01.4.1996 to 15.11.2002. For Appellant: Mr.T.R.Senthilkumar, SSC assisted by Ms.K.G.Usharani, SC For Respondent: Mr.G.Baskar Judgment was delivered by T.S.Sivagnanam,J We have heard Mr.T.R.Senthilkumar, learned Senior Standing Counsel, assisted by Ms.K.G.Usharani, learned Standing Counsel appearing for appellant Revenue and Mr.G.Baskar, learned counsel appearing for respondent. 1/4 http://www.judis.nic.in TCA.No.557 of 2013 2. This appeal, filed by Revenue under Section 260A of Income Tax Act, 1961 (for short, Act) is directed against order dated 02.3.2012 made in IT(SS)A.No.27/Mds/2011 on file of Income Tax Appellate Tribunal, Chennai 'D' Bench (for brevity, Tribunal) for block period 01.4.1996 to 15.11.2002. 3. appeal has been admitted on 24.9.2013 on following substantial questions of law : i. Whether, on facts and in circumstances of case, Income Tax Appellate Tribunal was right in quashing assessment order holding that Assessing Officer has not recorded reasons before initiating proceedings under Section 158BD of Income Tax Act ? And ii. Whether, on facts and in circumstances of case, Appellate Tribunal was right in quashing assessment order without noting that there is no time limit prescribed in Income Tax Act for recording satisfaction note for issuing notice under Section 158BD and Assessing Officer has initiated proceedings within reasonable time ? 4. This appeal cannot be pursued by Revenue in light of Board's circular in Circular No.24/2015 dated 31.12.2015. In said 2/4 http://www.judis.nic.in TCA.No.557 of 2013 circular, it has been stated that guidelines of Hon'ble Supreme Court in 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 notice of all for strict compliance and it has been clarified that even if Assessing Officer of searched person and 'other person' is one and same, then also, he is required to record his satisfaction as has been held by Courts. Therefore, it has also been clarified that filing of appeals on issue of recording of satisfaction note should also be decided in light of said judgment. Taking note of said decision, Board directed that pending litigation with regard to recording of satisfaction note under Section 158BD/153C of Act should be withdrawn/not pressed if it does not meet guidelines laid down by Hon'ble Apex Court. above circular fully covers issue raised in case on hand and appeal has to be dismissed. 5. In light of above, tax case appeal filed by Revenue is dismissed and substantial questions of law framed are left open. No costs. 15.6.2020 Speaking (or) Non Speaking Order Index/Internet: Yes (or) No 3/4 http://www.judis.nic.in TCA.No.557 of 2013 T.S.SIVAGNANAM,J AND PUSHPA SATHYANARAYANA,J RS To Income Tax Appellate Tribunal, Chennai 'D' Bench. TCA.No.557 of 2013 15.6.2020 4/4 http://www.judis.nic.in Commissioner of Income-tax, Central Circle, Chennai v. JF Chit Funds Pvt. Ltd
Report Error