CIT Central-I Vs SRM Systems and Software Pvt. Ltd. (Madras High Court)
Madras High Court held that the recording of satisfaction note is pre- requisite before initiating proceeding under section 153C of the Income Tax Act. In absence of the same, assessment order is liable to be quashed. Accordingly, appeal of the revenue is dismissed.
Facts- Revenue has preferred the present appeal mainly contesting that whether the Appellate Tribunal was right in quashing the assessment orders made under Section 153C of the Income Tax Act without verifying the Satisfaction Note recorded by the Assessing Officer?
Conclusion- The Hon’ble Supreme Court in the case of CIT vs. Calcutta Knitwears, (2014) 6 SCC 444 has held that the recording of satisfaction note is pre- requisite and the same must be prepared by the AO before he transmits the record to the other AO who has jurisdiction over such other person.
Held that at no stretch of imagination, it can be stated that, even without a separate satisfaction note pertains to the other person by the Assessing Officer of the searched person such a proceedings under Section 153C can be invoked and completed. Hence, the view taken initially by CIT (Appeals) confirmed and concurred with the same by the ITAT in the order impugned are all in consonance with the settled legal proposition. Therefore we have no hesitation to hold that, absolutely there has been no infirmity attached with the orders passed by the ITAT which is impugned herein. Resultantly, all these Appeals fail, therefore they are liable to be dismissed.
FULL TEXT OF THE JUDGMENT/ORDER OF MADRAS HIGH COURT
1. Since the issue raised in all these Tax Case Appeals is one and the same against the same assessee, all these Appeals were heard together and are disposed by this common order.
