TaxTMI 
TaxTMI 
2007 (11) TMI 443
X X X X Extracts X X X X
X X X X Extracts X X X X
....der section 132 was conducted on the business/ residential premises of Shri L. Sambashiva Reddy, who is the managing director of M/s. Saravana Construction (P.) Ltd., Bangalore. During the course of search, certain documents showing receipt of huge cash loans, repayment of cash loans and payment of interest on these loans to various parties were found and seized. Shri P. Srinivas Nayak, the assessee also advanced loan to M/s. Saravana Construction (P.) Ltd. during the period 1-4-1997 to 31-3-2004. The Assessing Officer has referred to the seized material which indicated the names of the persons who has given cash loan with dates on right hand side, repayment of cash loan by way of instalment on the left hand side and interest paid to these ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ot taken place on the business or residential premises of the assessee and, therefore, he has no right to challenge the search initiated in the case of Shri L. Sambashiva Reddy. Hence, the ground of appeal, relating to the challenge of search in the case of L. Sambashiva Reddy is dismissed. 4. If the search is initiated under section 132(1) of the Income-tax Act, then the Assessing Officer has to issue notice to such person to furnish the return of income in respect of each assessment year falling within six assessment years referred to in clause (b) of section 153A. Section 153C provides that where the Assessing Officer is satisfied any money, bullion, jewellery or other valuable article or thing or books of account or documents seized be....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ment of the income of any other person is assessable under section 153C of the Act. The new section 153C provides that where an Assessing Officer is satisfied that any money, bullion, jewellery or other valuable articles or thing or books of account or documents seized or requisitioned belong or belongs to a person other than the person referred to in section 153A then the books of account or documents or assets seized or requisitioned shall be handed over to the Assessing Officer having jurisdiction over such other person and that Assessing Officer shall proceed against such other person and issue such other person notice and assess or reassess income of such other person in accordance with provision of section 153A. From perusal of the r....
X X X X Extracts X X X X
X X X X Extracts X X X X
....rguments is being submitted for ground No. 1(e) as the substantial question of law was raised in ground No. 1(c) and 1(d). In the fact and circumstances of the case, the Hon'ble Bench is requested to issue their finding/direction in this case, since question of law arose first time with reference to the new provision of section 153C of the Act." 7. We have heard both the parties. It is an undisputed fact that books of account or document does not belong to the assessee, as these were seized from the premises of Shri Reddy. It is nowhere stated that these books of account or documents showed that all the transactions belonging to the assessee. Such books of account or documents contained the transactions relating to the group concerns of Sh....