Commissioner Of Income Tax, Central Circle, Chennai v. M/S.jf Chit Funds Pvt. Ltd., Chennai-1

In the High Court of Judicature at Madras The Honourable Mr.Justice T.S.SIVAGNANAM The Honourable Mrs.Justice PUSHPA SATHYANARAYANA Commissioner of Income Tax, Central Circle, Chennai...AppellantVsM/s.JF Chit Funds Pvt. Ltd.,Chennai-1....Respondent APPEAL under Section 260A of the Income Tax Act, 1961 againstthe order dated 02.3.2012 made in IT(SS)A.No.27/Mds/2011 on thefile of the Income Tax Appellate Tribunal, Chennai 'D' Bench forthe block period 01.4.1996 to 15.11.2002 preferred against orderof the Commissioner of Income tax (Appeals)-II, Chennai dated02.09.2011 in ITA.No.143/2007-08 filed against the BlockAssessment order dated 26.12.2007 passed by the AssistantCommissioner of Income Tax Central Circle II(4) chennai for theAssessment year 97-98 to 2002-03. Judgment was delivered by T.S.Sivagnanam,J We have heard Mr.T.R.Senthilkumar, learned Senior StandingCounsel, assisted by Ms.K.G.Usharani, learned Standing Counselappearing for the appellant – Revenue and Mr.G.Baskar, learnedcounsel appearing for the respondent. 2. This appeal, filed by the Revenue under Section 260A ofthe Income Tax Act, 1961 (for short, the Act) is directedagainst the order dated 02.3.2012 made in IT(SS)A.No.27/Mds/2011on the file of the Income Tax Appellate Tribunal, Chennai 'D'Bench (for brevity, the Tribunal) for the block period 01.4.1996 1/3 https://hcservices.ecourts.gov.in/hcservices/ to 15.11.2002. 3. The appeal has been admitted on 24.9.2013 on the followingsubstantial questions of law : “i. Whether, on the facts and in thecircumstances of the case, the Income TaxAppellate Tribunal was right in quashing theassessment order holding that the AssessingOfficer has not recorded the reasons beforeinitiating proceedings under Section 158BDof the Income Tax Act ? Andii. Whether, on the facts and in thecircumstances of the case, the AppellateTribunal was right in quashing theassessment order without noting that thereis no time limit prescribed in the IncomeTax Act for recording satisfaction note forissuing notice under Section 158BD and theAssessing Officer has initiated theproceedings within the reasonable time ?” 4. This appeal cannot be pursued by the Revenue in the lightof the Board's circular in Circular No.24/2015 dated 31.12.2015.In the said circular, it has been stated that the guidelines ofthe Hon'ble Supreme Court in the case of M/s.Calcutta Knitwears[Civil Appeal No.3958 of 2014 dated 12.3.2014] with regard torecording any satisfaction note were brought to the notice ofall for strict compliance and it has been clarified that even ifthe Assessing Officer of the searched person and the 'otherperson' is one and the same, then also, he is required to recordhis satisfaction as has been held by the Courts. Therefore, ithas also been clarified that filing of appeals on the issue ofrecording of satisfaction note should also be decided in thelight of the said judgment. Taking note of the said decision,the Board directed that pending litigation with regard torecording of satisfaction note under Section 158BD/153C of theAct should be withdrawn/not pressed if it does not meet theguidelines laid down by the Hon'ble Apex Court. The abovecircular fully covers the issue raised in the case on hand andthe appeal has to be dismissed. 5. In the light of the above, the tax case appeal filed bythe Revenue is dismissed and the substantial questions of lawframed are left open. No costs. Sd/- Assistant Registrar /true copy/ Sub Asst. Registrar To1.The Income Tax Appellate Tribunal, Chennai 'D' Bench. 2.The Commissioner of Income TaxAppeals-IIChennai 3.The Assistant Commissioner of Income TaxCentral Circle II (4)Chennai 4.The Commissioner of Income TaxCentral Circle Chennai TCA.No.557 of 2013 aa21/10/2020 3/3