TaxTMI 
TaxTMI 
2011 (4) TMI 582
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....rt of goods at 2. Ahmedabad. It is the case of the petitioner that the petitioner's nephew, Atulbhai, had gone to Deesa on September 22, 1998, for purchase of a second-hand truck. As, according to Atulbhai, it was not safe to carry cash with him to Deesa, he decided to go first and finalize the deal and then if need be, on finalization of the deal and the price to be paid, he would be making arrangement for payment. On reaching Deesa and making a deal with the seller of the truck, who was a stranger to Atulbhai, Atulbhai made an arrangement to get cash through Devendra Finance of Deesa. Devendra Finance of Deesa which was contacted by Atulbhai, asked Atulbhai to handover Rs. 2,00,000 to Bansi Finance of Ahmedabad situated at Kalupur and tol....
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....s returns of income for and up to the assessment year 1997-98 with the Assessing Officer, Ward 8(2). That he had generated substantial revenue from his transport business and that the same was being regularly accounted for in the books of account maintained by him. It was further stated that because of the nature of the business carried on by him, Atulbhai was normally having a substantial cash balance which was available with him and which was also duly reflected in the books of account regularly maintained by him and that on September 22, 1998, that is, the date of the search, he had cash balance of Rs. 3,16,719.60 and that Rs. 2,00,000 which Nandkishore had gone to deliver to Bansi Finance were withdrawn from the said amount. 4. ....
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....he petitioner, invited attention to the provisions of section 158BD of the Act to submit that the basic requirement of the said section is that the Assessing Officer of the searched party is required to be satisfied that undisclosed income belongs to any person other than the person with respect to whom search was made under section 132 or whose books of account or other documents or any assets were requisitioned under section 132A of the Act. It was submitted that in the present case, the very fact that in respect of the amount of Rs. 2,00,000 notices under section 158BD of the Act came to be issued to the petitioner as well as to Atulbhai shows the absence of the requisite satisfaction that the said amount is an undisclosed income of the ....
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....ithout jurisdiction and deserves to be quashed and set aside. 8. On the other hand, Mr. M. R. Bhatt, senior advocate, learned counsel for the respondents has supported the impugned notice. The attention of the court was drawn to the affidavit made by respondent No. 2 wherein it is stated that an appraisal report was prepared by the concerned DDIT and sent to the Deputy Commissioner of Income-tax, Central Circle-2(1), Ahmedabad, who is the Assessing Officer having jurisdiction over the case of the search party, that is, M/s. Bansi Finance. He, on being satisfied about necessity of action under section 158BD in the case of the petitioner, made a reference to the Income-tax Officer, Ward 3(4), Ahmedabad, vide his letter dated January 1....
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.... of the Act has not been recorded by the Assessing Officer of Bansi Finance, it may be germane to reproduce the relevant part of the aforesaid communication which reads thus : "2. An action under section 132(1) has been carried out in the group of Bansi Finance on September 22, 1998. An action under section 132(1) has also been conducted at the office of Jalaram Canvassing, Bansi Finance located at 148/3 Kabbutarkhana, Kalupur, Ahmedabad. 3. During the course of search cash of Rs. 2 lakhs has been seized from the custody of Shri Nandkishore M. Thakkar who is an employee of Chandubhai A. Thakkar. An abstract of relevant part of appraisal report is enclosed herewith. 4. Subsequently, statement of Shri Chandubhai A. Tha....
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....warded the papers referred thereto to him. In the entire communication, there is nothing to indicate any satisfaction having been recorded by the Assessing Officer of the person with respect to whom the search was made to the effect that Rs. 2 lakhs seized during the course of the search proceedings was an undisclosed income of the petitioner. 13. Section 158BD of the Act mandates that the Assessing Officer of the person with respect to whom search was made should be satisfied that any undisclosed income belongs to any person, other than the person with respect to whom the search was made under section 132 of the Act and it is after recording such satisfaction that the books of account, other documents or assets seized or requisitio....