In Both Petitions v. Mr.j.s.kamath

In the High Court of Judicature at Madras Dated : 06.7.2020 Coram : The Honourable Mr.Justice T.S.SIVAGNANAM and The Honourable Mrs.Justice V.BHAVANI SUBBAROYAN Tax Case Appeal Nos.256 & 257 of 2010 Commissioner of Income Tax, Central III, Chennai ...Appellant/Appellant in both petitions Vs Mr.J.S.Kamath ...Respondent/Respondentin both petitions APPEALS under Section 260A of the Income Tax Act, 1961against the common order dated 26.6.2009 made respectively in IT(SS)A.No.7/Mds/ 2008 and C.O.No.30/Mds/2008 in IT(SS)A.No.7/Mds/2008 on the file of the Income Tax AppellateTribunal, Chennai 'A' Bench for the block assessment period from01.4.1996 to 26.11.2002 and against the order dated 11.09.2007made respectively in ITA.No.376/2006-07 on the file fo thecommissioner of Income Tax(Appeals)-II, Coimbatore, for theblock assessment period from 10.04.1996 to 26.11.2002, andagainst the order dated 12.12.2006 in PAN/GIR No. onthe file of the Deputy Commissioner of Income-Tax CentralCircle-III, Coimbatore for block assessment period from01/04/1996 to 26/11/2002. For Appellant : Mr.T.R.Senthilkumar, SSC assisted in both cases by Ms.K.G.Usharani, SC For Respondent: Mr.A.S.Sriraman in both cases 1 COMMON JUDGMENT (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.A.S.Sriraman,learned counsel appearing for the respondent. 2. These appeals, filed by the Revenue under Section 260A ofthe Income Tax Act, 1961 (for short, the Act) are directedagainst the common order dated 26.6.2009 made respectively in IT(SS)A.No.7/Mds/2008 and C.O.No.30/ Mds/2008 in IT(SS)A.No.7/Mds/2008 on the file of the Income Tax Appellate Tribunal,Chennai 'A' Bench (for brevity, the Tribunal) for the blockperiod 01.4.1996 to 26.11.2002. 3. The appeals have been admitted on 22.3.2010 on thefollowing substantial question of law :“Whether, on the facts and in thecircumstances of the case, the Income TaxAppellate Tribunal was right in holding thatthe assessment made on the assessee for theblock period under Section 158BD was void abinitio and in quashing the assessment on theground which no satisfaction note has beenrecorded by the concerned Assessing Officerto the effect that the income belonged toanother person namely the assessee?” 4. These appeals cannot be pursued by the Revenue in thelight of the Board's circular in Circular No.24/2015 dated31.12.2015. In the said circular, it has been stated that theguidelines of the Hon'ble Supreme Court in the case ofM/s.Calcutta Knitwears [Civil Appeal No.3958 of 2014 dated12.3.2014] with regard to recording any satisfaction note werebrought to the notice of all for strict compliance and it hasbeen clarified that even if the Assessing Officer of thesearched person and the 'other person' is one and the same, thenalso, he is required to record his satisfaction as has been heldby the Courts. Therefore, it has also been clarified that filingof appeals on the issue of recording of satisfaction note shouldalso be decided in the light of the said judgment. Taking noteof the said decision, the Board directed that pending litigationwith regard to recording of satisfaction note under Section158BD/153C of the Act should be withdrawn/not pressed if it doesnot meet the guidelines laid down by the Hon'ble Apex Court. Theabove circular fully covers the issue raised in the case on handand the appeals have to be dismissed. 5. In the light of the above, the tax case appeals filed bythe Revenue are dismissed and the substantial question of lawframed is left open. No costs. Sd/- Assistant Registrar(CS-IV) //True Copy// Sub Assistant Registrar RS 5. In the light of the above, the tax case appeals filed bythe Revenue are dismissed and the substantial question of lawframed is left open. No costs. Sd/- Assistant Registrar(CS-IV) //True Copy// Sub Assistant Registrar RS To1.The Income Tax Appellate Tribunal, Chennai 'A' Bench, Chenai.2.The Commissioner of Income Tax Appeals II, Coimbatore.3.The Deputy Commissioner of Income Tax, Central Circle-III, Coimbatore.TCA.Nos.256 & 257 of 2010NR(CO)CB(23/09/2020) 3