TaxTMI 
TaxTMI 
2011 (9) TMI 1001
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....iod u/s.158BE in case of Jayraj Group cases is barred by limitation and therefore invocation of Section 158BD in case of appellant is bad at law. 3. Assessment u/s.158BD for the block period 01/04/1995 to 19/12/2001 in the case of the appellant is bad in law as on satisfaction was recorded in cases of Jayraj Group before completion of block assessment u/s.158BC in their cases." 3. At the time of hearing before us, it is stated by the learned counsel that the additional grounds are legal grounds which goes to the root of the matter and the necessary facts for adjudicating these grounds are already on record of the Revenue. He therefore requested for admission of the above additional grounds. 4. The learned DR, on the other hand objected to the admission of the additional evidence. 5. We have heard both the parties and perused the material placed before us. In the case of National Thermal Power Co. Ltd. Vs. CIT, 229 ITR 383 (SC), Their Lordships held as under: "Under section 254 of the Income-tax Act, 1961, the Appellate Tribunal may, after giving both the parties to the appeal an opportunity of being heard, pass such orders thereon as it thinks fit. The power of the Tribunal ....
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....roda. 16.3.2006 iii. u/s.158BC rws 263 29.12.2006 2. Date of recording of reasons for initiating action u/s.158BD 23.2.2004 3. Date of order passed in this case u/s.158BD rws 158BC(C) 31.1.2006 7. Copy of the reasons recorded for issue of notice under Section 158BC is at page no.25 of the Revenue's paper book which reads as under: "REASONS FOR ISSUE OF NOTICE U/S.158BD OF THE ACT. Assessee : Shri Upendra N. Patel, Shri Lalit M. Patel & AShri Champak M. Patel "A search and seizure action in the Jayraj Group was carried out u/s.132 (1) on 19 12.2001. Certain incriminating documents pertaining to Shri Upendra N.Patel, Shri Lalit M.Patel & Shri Champak M.Patel has been seized, which have not been accounted for in his regular books of accounts. The seized documents show that Shri Lalit M.Patel and Shri Champak M.Patel have acquired rights in the landed property of M/s.Hindustan Earth Movers Pvt. Ltd, which was finally acquired by Shri Jayesh Dave and Shri Upendra N.Patel, on the basis of final compromise agreement entered into by the respective parties dated 30.09.2000, which was duly approved by the jurisdictional Civil Court, Baroda vide compromis....
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....n 263, in the Jayraj Group of cases. 9. We have heard both the parties and perused the material placed before us. The provisions of section 158BD has been considered by the Hon'ble Apex court in the case of Manish Maheshwari (supra). At Page No.348 of the report, Their Lordships held as under: " The condition precedent for invoking a block assessment is that a search has been conducted under section 132, or documents or assets have been requisitioned under section 132A. The said provision would apply in the case of any person in respect of whom search has been carried out under section 132A or documents or assets have been requisitioned under section 132A. Section 158BD, however, provides for taking recourse to a block assessment in terms of section 158BC in respect of any other person, the conditions precedent wherefor are : (i) satisfaction must be recorded by the Assessing Officer that any undisclosed income belongs to any person, other than the person with respect to whom search was made under section 132 of the Act ; (ii) the books of account or other documents or assets seized or requisitioned had been handed over to the Assessing Officer having jurisdiction over such othe....
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....ined shows that the undisclosed income pertains to some other person he has to give a finding to this effect and thereupon transmit the related seized material to the Assessing Officer having jurisdiction over the other person. All these findings have to be recorded after an honest appreciation of the seized material with an objective mind and there has to be a record reflecting such findings on the basis of which alone the other Assessing Officer can assume jurisdiction to proceed against the other person and it is this record which forms the 'note of satisfaction' or the 'record of satisfaction'. In such circumstance, the recording of such satisfaction is impliedly to be done in the course of the section 158BC proceeding as the satisfaction has to be recorded only by the Assessing Officer making the block assessment in the case of the person searched which in turn means the section 158BC proceedings such satisfaction cannot be recorded beyond the date of the block assessment in the section 158BC proceeding and the date of the block assessment is the outer limit for recording such satisfaction. This is for the reason that the satisfaction has to be recorded by the Asse....
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....er Section 158BD. Obviously, the reason is recorded by the AO who issued the notice under Section 158BD. It seems that the AO considered the provision of section 158BD similar to Section 148 and therefore before the issue of notice, he recorded the reasons for issuing of such notice. ii) The name of the assessee mentioned in the satisfaction note is Shri Upendra N. Patel, Shri Lalit M. Patel & Shri Champak M. Patel. Thus, the reason is recorded in the case of these assessee and not in the case of Jayraj Group of cases. Had the satisfaction recorded by the AO of Jayraj Group of cases, then the name of the assessee would have been "Jayraj Group of cases" and not as Shri Upendra N. Patel, Shri Lalit M. Patel & Shri Champak M. Patel. iii) In the first line of the satisfaction note, the AO has menioned the "Search and seizure action in the Jayraj group of cases was carried out under Section 132(1) on 19-12-2001". If the satisfaction note was recorded by the AO of Jayraj group of cases, he would have mentioned "a search and seizure action has taken place in the case of the assessee." iv) At the end of the notice, the AO has mentioned "since this fact could be discovered from the vario....