TaxTMI 
TaxTMI 
2015 (3) TMI 542
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....305 and 306/Agra/2013 for the assessment year 2002-03 and 2006-07. The brief facts of the case are that all the assessees belong to M/s. Shanker Gutka Group, where a search and seizure operation was carried out on 30/31 January 2008. During the course of search, some cash was found and seized. No search warrant was issued in the name of the assessees, but the proceedings under Section 153C were initiated and assessees were asked to file the returns. Later, the A.O. passed the assessment order on account of house property and long term capital gain under Section 153C read with Section 153A/143(3) of the Income Tax Act. The CIT(A) has confirmed the additions, but the Tribunal has deleted the said additions. Being, aggrieved the Department ....
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.... view that the material available establishes "undisclosed income" of a third party. The Assessing Officer must reach a clear conclusion that good ground exists for the Assessing Officer of the third person to initiate proceedings as material before him shows or would establish "undisclosed income" of a third person. At this stage, as the proceedings are at the very initial stage, the "satisfaction" is neither required to be firm or conclusive..." On an enquiry by the Bench, the learned counsel for the Department accepted that in the instant cases, no satisfaction was recorded. He read out para 7 of the Tribunal's order, where it was mentioned that the A.O. did not make any addition against the assessee on the basis of any adverse ma....
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....llery or other valuable articles or other things or books of accounts or documents seized or requisitions belongs or belong to a person other than the person referred to in Section 153A. (c) The books accounts or documents or assets seized or requisitioned shall be handed over to the AO having jurisdiction over such other persons. (d) The AO has proceeded under Section 153C against such other person. The section mandates about recording of the satisfaction by the Assessing Officer(s) and it is a pre-condition for invoking jurisdiction and it is not a mere formality because recording of satisfaction postulates application of mind consciously as the documents seized must be belonging to any other person other than the person referred....
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....son and issue such other person notice and assess or reassess income of such other person. However, there is a distinction between the two provisions inasmuch as under section 153C notice can be issued only where the money, bullion, jewellery or other valuable article or thing or books of account or documents seized or requisitioned belong to such other person, whereas under section 158BD if the Assessing Officer was satisfied that any 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 assets were requisitioned under Section 132A, he could proceed against such other person under Section 158BC. Thus a condition precedent for is....