TaxTMI 
TaxTMI 
2009 (12) TMI 987
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....e erred in confirming the action of Assessing Officer. 2. On the facts and in the circumstances of the case, the learned Commissioner of Income Tax(Appeals) has erred in confirming the action of the Assessing Officer with regard to passing a time barred order. 3. On the facts and in the circumstances of the case, the learned Commissioner of Income Tax(Appeals) has erred in confirming the action of the Assessing Officer for not allowing the opportunity of confirming with the builder from whom documents were ceased. 4. On the facts and in the circumstances of the case, the learned Commissioner of Income Tax(Appeals) has erred in not admitting additional evidence under Rule 46A which ought to have been referred to Assessing Officer in....
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....ereto is also bad in law. She also referred to a decision of ITAT, Ahmedabad Bench in ITA No. 209/A/2007 in Kuintesh Bhupathrai Desai Vs. ACIT pronounced on 26-03-2009 and also arising from the same search on Om Developers, wherein it is held that assessment order passed under section 158BD on the basis of notice issued under that section after passing the order under section 158BC in the case of person searched would be bad in law. For the sake of convenience she referred to para No.6 from that order. "6. We have considered the rival submissions and have also perused the materials available on record. In our considered view, the issue is squarely covered in favour of the assessee and against the Revenue by the decision of I.T.A.T. Delhi ....
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....isdiction under the said section enabling the Assessing Officer assessing the other person in respect of whom the Assessing Officer assessing the other person in respect of whom the Assessing Officer assessing the person searched gives a finding that the undisclosed income unearthed as a result of search belongs to the said person and once such a finding is given the provisions of section 158BD come into operation. This, therefore, involves assumption of jurisdiction and cannot be construed as a procedural matter. In the absence of a finding in this behalf, there is no jurisdiction to the other Assessing Officer at all to proceed further in the matter. As the time-limit set in section 158BE applies to such finding, it is only logical that t....
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....ble Supreme Court in Manish Maheshwari's case [2007] 289 ITR 0341 and Manoj Agarwal's case when he finds while examining the case of person searched that certain income arising from the ceased material would belong to a person other than the person searched, then he has to record a satisfaction before passing order under section 158BC in the case of person searched and transfer the material to the Assessing Officer of such other person. But where material found in search is glaringly apparent that it belongs to a third person other then the person searched, then no specific satisfaction is required to be recorded and therefore, it is not necessary to issue notice under section 158BD before the closure of the assessment of the person searche....
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.... 113 ITD 377 Delhi the issue before the Hon'ble Courts was relating to the cases where a finding that undisclosed income does not belong to the searched person but it belongs to the other person was necessitated. That is the issue was whether to assess the undisclosed income in the hands of the person searched OR in the hands of the other person. As against this the nature of the evidences found in the acse at hand is of such nature that perforce the undisclosed income evidenced therein has to be assessed both in the hands of the person searched AND also in the hands of the other person. e. In this case the Diary B-2 contained notings regarding purchase of flats/units at Chandan Park by various persons. Due particulars of the specifi....