Search under section 132 is person-centric; section 153C can apply to the other person without year-wise satisfaction notes.

A search under section 132 is person-centric: the searched person is the person named in the warrant on the basis of recorded statutory satisfaction, and not merely the occupant or owner of the premises searched. Where seized material belongs to or pertains to another person, proceedings may be initiated under section 153C if the required satisfaction is recorded and material is handed over to the jurisdictional Assessing Officer. A separate satisfaction note for each assessment year is not required when the jurisdictional conditions are otherwise met, so a consolidated note can sustain the proceedings.

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Issues: (i) whether a search under section 132 of the Income-tax Act, 1961 is person-centric or premises-centric and whether the occupant of the searched premises becomes the "searched person"; (ii) whether proceedings under section 153C of the Income-tax Act, 1961 were validly initiated against the respondent and whether a separate satisfaction note was required for each assessment year.

Issue (i): whether a search under section 132 of the Income-tax Act, 1961 is person-centric or premises-centric and whether the occupant of the searched premises becomes the "searched person".

Analysis: Section 132 requires satisfaction under clauses (a) to (c) in relation to a person, while clauses (i) to (v) concern the place to be searched on reason to suspect that the material is kept there. The warrant of authorisation is issued in the name of the person against whom the statutory satisfaction is recorded, whereas the premises mentioned in the warrant only identify the location where the search is to be executed. The identity of the searched person is therefore determined by the person named in the warrant and not by ownership or occupation of the premises searched.

Conclusion: The search is person-centric and the respondent, being only the occupant of the searched premises, was not the searched person.

Issue (ii): whether proceedings under section 153C of the Income-tax Act, 1961 were validly initiated against the respondent and whether a separate satisfaction note was required for each assessment year.

Analysis: Section 153C applies where the Assessing Officer is satisfied that seized material belongs to or pertains to a person other than the searched person and the material is handed over to the jurisdictional Assessing Officer. The record showed that the statutory satisfaction was recorded and the notice was issued against the respondent as the other person. The provision does not require a separate satisfaction note for each assessment year when the jurisdictional requirements are otherwise met, and a consolidated satisfaction note is sufficient.

Conclusion: The proceedings under section 153C were valid and no separate satisfaction note for each assessment year was required.

Final Conclusion: The challenge to the notice under section 153C failed, the writ appeal succeeded, and the notices were restored.

Ratio Decidendi: For purposes of section 132 and section 153A, the searched person is the person against whom statutory satisfaction is recorded and in whose name the warrant issues, while a person whose premises are searched is not thereby treated as the searched person; proceedings against such other person lie under section 153C upon the requisite satisfaction, without any need for year-wise separate satisfaction notes.

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