Office notice appended to 158BC order can constitute satisfaction note within the parameter of Section 158BD of the Income Tax Act, 1961 – HC

The Commissioner of Income Tax (CIT) Versus M/s Mukta Metal Works (High Court Of Punjab and Haryana at Chandigarh) – Whether the Tribunal is right in holding at page 68 of the order that the office note dated 21.05.2001 which was appended to 158BC order dated 21.5.2001 and is part of the said order, does not constitute a satisfaction note within the parameter of Section 158 BD of the Income Tax Act, 1961 in respect of the person who has borrowed money through the assessee broker who is the searched person for the purpose of order U/s 158 BC of the Income Tax Act, 1961.

I.T.A. No. 22 of 2008 Date of decision: 28.2.2011

The Commissioner of Income Tax —— Appellant.

Versus

M/s Mukta Metal Works. Respondent

CORAM:- HONORABLE MR. JUSTICE ADARSH KUMAR GOEL HONORABLE MR. JUSTICE AJAY KUMAR MITTAL

Present:-    Mr. Yogesh Putney, Sr.Standing Counsel for the appellant.

Ms. Radhika Suri, Advocate for the respondent.

—

ADARSH KUMAR GOEL, J.

1. This appeal has been preferred by the revenue under Section 260-A of the Income Tax Act, 1961 (for short, “the Act”) against the order of the Income Tax Appellate Tribunal, Chandigarh in IT/SS No.37/Chandi/2005 and C.O. 71/Chandi/ 2005 for the block period ending on 14.9.1999 claiming following substantial questions of law:-

“1. Whether the Ld. Tribunal is right in holding at page 68 of the order that the office note dated 21.05.2001 which was appended to 158BC order dated 21.5.2001 and is part of the said order, does not constitute a satisfaction note within the parameter of Section 158 BD of the Income Tax Act, 1961 in respect of the person who has borrowed money through the assessee broker who is the searched person for the purpose of order U/s 158 BC of the Income Tax Act, 1961?