TaxTMI 
TaxTMI 
2016 (6) TMI 526
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....out search and seizure operations on M/s R.K. Madhani & Co. u/s 132 of the Act o 17.12.1998. Consequent thereto a notice u/s 158BC was issued to the assessee and the assessment was framed. The CIT(A) annulled the assessment, vide his order dated 31.5.2001, since the revenue has not carried out any search in the hands of the assessee. The order passed by Ld CIT(A) was confirmed by the Tribunal. Subsequently, the revenue issued notice u/s 158BD of the Act and the assessment under that section was passed on 28- 07-2003. The Ld CIT(A) granted partial relief and the revenue filed appeal before the Tribunal. 3. The assessee moved a petition under Rule 27 of the Appellate Tribunal Rules pleading that the assessing officer of the searched person d....
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....s made therein with regard to the "satisfaction note". Following observations made by Hon'ble High Court of Bombay are relevant here:- "13. In view of the above, while we uphold the impugned order to the extent it holds that there is an error apparent on the record in the order dated 29th December, 2010 in not having considered the letter dated 21st August, 2000, we do not uphold the other observations made by the Tribunal in the impugned order with regard to the exact nature, scope, effect and consequences of the communication dated 21st August, 2000. The regular Bench of the Tribunal to whom the revenue's appeals both on quantum and penalty are restored for hearing would not be influenced in any manner by the observations made in the im....
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....ch and seizure action carried out in the Case of M/s. R.K. Madhani & Co. and its group Of cases on 17.12.98 and 18.12.98 - regarding Ref : M/s. Gyan Construction Co. Search action u/s. 132 of the I.T. Act was carried out at the office premises of M/s. R.K. Madhani & Co., and its group of cases on 17.12.98 & 18.12.98. During the course of search action, statement of Shri Gyanchand was recorded u/s. 132 of the I.T.Act on 18.12.98. Shri Gyanchand R. Madhani has made disclosure of Rs. 46,00,000/- in the group of cases which are as under : Rs. 30 lacs in the hands of M/s. R.K. Madhani & Co. Rs. 10 lacs in the hands of M/s. Gyan Construction Co. Rs. 60 lacs in the hands of M/s. R.K. Chemical Disclosures are made on account of....
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....hall apply accordingly." 10. The provisions of sec. 158BD, in our view, contemplates that the satisfaction should be arrived in an objective manner by the AO of searched person and thereafter, he should hand over the relevant documents to the AO of other person. A careful reading of the letter dated 21.8.2000, referred above, would show that the AO of the searched person has merely given the facts relating to the admissions made by Shri Gyanchand R Madhani and further refers to the disclosure made on account of inflated expenses. While section 158BD refers to the "undisclosed income", the AO did not refer to any undisclosed income emanating from the documents found during the course of search. The AO simply refers to the admission made in....