TaxTMI 
TaxTMI 
2015 (9) TMI 127
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....25,000 3. Anil Kumar Agarwal 2004-05 30,000 4. Anil Kumar Agarwal 2005-06 30,000 5. Anil Kumar Agarwal 2006-07 30,000 6. Anil Kumar Agarwal 2007-08 30,000 7. Chanderpal Agarwal 2007-08 30,000 8. Chanderpal Agarwal 2008-09 30,000 In addition, there was one more issue of un-explained gift in the hands of Shri Anil Kumar Agarwal in AY. 2002-03 of Rs. 74,980/-. 2. Assessee contended before the Ld. CIT(A) that proceedings U/s. 153C does not empower addition of un-explained/low withdrawals and also the matters which are already settled in the assessment years. However, Ld. CIT(A) did not consider the assessee's contentions and dismissed the appeals in all the impugned years. 3. Assessee apart from raising various grounds contesting the additions made, also raised additional grounds commonly in all the cases as under: "9. We would like to submit that as per the ratio laid down by the Hon'ble Supreme Court of India in the case of National Thermal Power Co. Ltd., V. CIT (1998) 229 ITR 383 (SC) the ITAT has jurisdiction to examine the question of law which though not arose before the AO but aros....
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....hat 'during the course of search incriminating material regarding undisclosed income of the assessee was found'. This statement is common for both assessees. This bland statement can not be considered as satisfaction for initiation of proceedings u/s 153C as it does not indicate the nature of seized material and how income is assessable in assessee hands. As seen from the orders also, there is no discussion about any incriminating material or incomes to be assessed under the provisions of Section 153C. Provisions of Section 153C are as under: "153C. (1) [Notwithstanding anything contained in section 139, section 147, section 148, section 149, section 151 and section 153, where the Assessing Officer is satisfied that,- (a) any money, bullion, jewellery or other valuable article or thing, seized or requisitioned, belongs to; or (b) any books of account or documents, seized or requisitioned, pertains or pertain to, or any information contained therein, relates 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 othe....
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....cer having jurisdiction over such other person, such Assessing Officer shall issue the notice and assess or reassess total income of such other person of such assessment year in the manner provided in section 153A. 19. Substituted for "Notwithstanding anything contained in section 139, section 147, section 148, section 149, section 151 and section 153, where the Assessing Officer is satisfied that any money, bullion, jewellery or other valuable article or thing or books of account or documents seized or requisitioned belongs or belong 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" by the Finance Act, 2015, w.e.f. 1-6-2015. 20. Substituted for "and that Assessing Officer shall proceed against each such other person and issue such other person notice and assess or reassess income of such other person in accordance with the provisions of section 153A" by the Finance (No. 2) Act, 2014, w.e.f. 1-10-2014". 7. As can be seen from the above, if there was incriminating material AO should come to a satisfac....
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....tisfaction has to be recorded by the Assessing Officer who conducted search, that any money, bullion, jewellery or other valuable article or thing or books of account or documents seized or requisitioned belongs or belong to a person other than the person referred to in Section 153A of the Act. Thereafter, the Assessing Officer having jurisdiction over third party on receipt of the seized material or books of accounts or document being handed over to him shall record his own satisfaction after examining the same independently without being influenced by the satisfaction of the Seizing Officer. In other words it is not an automatic action. We find satisfaction of two officers is missing. In this connection we set out the text of the order of the Assessing Officer which is as follows. A search and seizure operation u/s. 132 was carried out in the group case of Dr. T. Yadhaiah Goud and others on 25*3*2010. During the course of search operation documents belonging to SHETTY PHARMACEUTICALS & BIOLOGICAL LTD., has been seized. Hence it is considered to initiate proceeding u/s. 153C of the I. T. Act. The aforesaid Section mandates recording of satisfaction of the Assessing Officer(s....