TaxTMI 
TaxTMI 
2010 (8) TMI 731
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.... Corpn. Ltd. v. CIT [2002] 258 ITR 481 (Mad.). 2. The facts of the case are that during the course of search under section 132 of the Act in the case of one Shri T. Rangroop Chand Chordia on June 7, 2000, details regarding property transactions in Ramaniyam Citadel at Block No. 10, Arumbakkam Village, Poonamallee High Road, Chennai, was found in the case of the assessees, Shri M. Janakiraman and his wife, Smt. P. A. Rani. It has been noted that both of them had sold the residential and commercial units constructed on the basis of agreement entered into by them with one builder, M/s. Ramaniyam Real Estate P. Ltd., and the substantial capital gains was not disclosed to the Department. On the basis of this, proceedings under section 158BD of the Act were initiated in these cases. In response to the notices issued, the assessees filed their respective return of income in Form 2B on January 28, 2004 admitting undisclosed income as nil. Against initiation of action under section 158BD, the assessee raised objection before the Assessing Officer which is noted down at page 10 in paragraph 3 of the assessment order and the same is reproduced hereinbelow : "3. The assessee's representative....
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....ph 10.18, he has held as under : "10.18 So, if a survey operation is followed by a search operation and when the appellant had not come forward with any disclosure during the survey or search, the Assessing Officer was well within his jurisdiction to invoke the provisions of section 158BD against the appellant." 5. Thereafter, being further aggrieved, the assessee came up in appeal before the Tribunal in the second appeal. The Tribunal has given the following finding : "(2) IT (SS)A. Nos. 62 and 63/Mds/05 : The first common ground raised in the assessees' appeals pertains to the upholding of the jurisdiction of the Assessing Officer in issuing the notice under section 158BD of the Income-tax Act, 1961. The brief facts are that there was a search action under section 132 on June 7, 2000 in the group cases of Shri T. Rangroop Chand Chordia and Shri Kailash Chand Chordia. Earlier there was a survey conducted in all their premises on December 15, 1999. It was discovered that the assessee along with his wife, Smt. P. A. Rani had entered into a joint venture agreement with the builder, M/s. Ramaniyam Real Estate P. Ltd. for the construction of residential as well as commercial complex....
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....efore confirmed and the assessees' grounds in this regard are rejected." 6. Now, the assessees, through these miscellaneous applications have prayed for recall of the order of the Tribunal on jurisdiction aspect by mentioning that there was no recording of "satisfaction" of the Assessing Officer of the "searched person" and that the seized documents were not handed over by the Assessing Officer of the "searched person" to the Assessing Officer of the "other person", i.e., the assessees. According to the petitions, pre-requisite conditions are required to be satisfied prior to issuance of a valid notice under section 158BD as mandated in the provisions of section 158BD itself which has been clearly spelt out and declared by the hon'ble Supreme Court in the case of Manish Maheshwari (supra). 7. The parties were heard on this issue in detail. During hearing, it was ascertained from the learned Departmental representative as to whether the Assessing Officer of the "searched party" has recorded his "satisfaction" as is required under section 158BD of the Act that any undisclosed income found during the course of search did belong to "other person", i.e, the assessees before us. The fr....
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....f section 254 of the Act within a specified time provided therein on an application to that effect either filed by the Income-tax Officer or the assessee. Section 254(2) is being extracted below for ready reference : "254. (2) The Appellate Tribunal may, at any time within four years from the date of the order, with a view to rectifying any mistake apparent from the record, amend any order passed by it under sub-section (1), and shall make such amendment if the mistake is brought to its notice by the assessee or the Assessing Officer : Provided that an amendment which has the effect of enhancing an assessment or reducing a refund or otherwise increasing the liability of the assessee, shall not be made under this sub-section unless the Appellate Tribunal has given notice to the assessee of its intention to do so and has allowed the assessee a reasonable opportunity of being heard : Provided further that any application filed by the assessee in this sub-section on or after the 1st day of October, 1998, shall be accompanied by a fee of fifty rupees." 9. Needless to mention the Tribunal is a creature of the Income-tax Act and has to exercise its jurisdiction under the enabling or e....
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....re the premises of a director of a company and his wife were searched under section 132 of the Income-tax Act, 1961 and a block assessment had to be done in relation to the company, the Assessing Officer had to (i) record his satisfaction that any undisclosed income belonged to the company, and (ii) hand over the books of account and other documents and assets seized to the Assessing Officer having jurisdiction against the company." 11. It seems that inadvertently the issue regarding recording of satisfaction and handing over of the records as per section 158BD was not dealt with by the Tribunal while deciding the appeals. Since nothing is found to be mentioned about the pre-requisite conditions, in any case, the decision of the hon'ble Supreme Court which tantamount to a provision of law being in existence from its very inception in view of article 141 of the Constitution of India. In that view of the matter, even a subsequent decision rendered by the hon'ble Supreme Court whereby a particular provision has been interpreted in a particular manner has to be treated as the law on the date of enforcement of that particular enactment. In case the decision of the hon'ble Supreme Court....