TaxTMI 
TaxTMI 
2021 (8) TMI 1173
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.....2) under Section 143(3) read with Section 153 C of the Income Tax Act, 1961 ('Act') for the Assessment Year (AY) 2016-17 and the second notice of demand of the same date issued by the Opposite Party No.2 under Section 156 of the Act calling upon the Petitioner to pay a sum of Rs. 7,71,81,350/-. 2. On 18th June, 2018 this Court inter alia allowed two applications seeking amendment of the writ petition viz., Misc. Case No.3489 of 2018 Misc. Case No.4517 of 2018 whereby certain averments were permitted to be inserted to the effect that the Petitioner's assessment were reopened under Section 153C of the Act for the AY 2012-13 to 2016-17 and that the Assessing Officer (AO) had not recorded a satisfaction note before initiation of the ....
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....aled the undisclosed income of a 3rd person viz., the present Petitioner and no such note of satisfaction was transmitted to the AO having jurisdiction to assess the present Petitioner under Section 153C of the Act. He points out that even the assessment orders passed under Sections 153A in respect of the searched persons do not indicate that any incriminating materials vis-à-vis the present Petitioner was found during the course of search. 8. The above submissions have been considered. It is seen in the present case that the documents relied upon by the AO were found in the course of survey of the Petitioner and not during the search of the aforementioned two persons viz., Sri Jami Ramesh and Sri Jami Sivasai against whom the sea....
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....sine qua non. Under Section 158BD the existence of cogent and demonstrative material is germane to the assessing officers' satisfaction in concluding that the seized documents belong to a person other than the searched person is necessary for initiation of action under Section 158BD. The bare reading of the provision indicates that the satisfaction note could be prepared by the assessing officer either at the time of initiating proceedings for completion of assessment of a searched person under Section 158BC of the Act or during the stage of the assessment proceedings. It does not mean that after completion of the assessment, the assessing officer cannot prepare the satisfaction note to the effect that there exists income tax belonging to a....
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....on note of the AO of the searched persons about any such incriminating material vis-à-vis the present Petitioner is also not disputed. The assessment order challenged in the present petition relates to disallowance of expenditure under Section 140A(3) of the Act that is payable to the cultivators, expenses towards Hamali i.e. labour charges, unexplained money under Section 69A of the Act, negative cash and unaccounted stock. This was not on account of the discovery of incriminating materials concerning the Petitioner found in the course of the search. In fact there was no search warrant under Section 132 of the Act against the Petitioner firm. 12. The legal position as regards Section 153 C of the Act has been explained in the dec....
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....ly stipulates that when inter alia any document is found in the possession or control of any person in the course of a search it may be presumed that such document belongs to such person. It is similarly provided in Section 292C(1)(i). In other words, whenever a document is found from a person who is being searched the normal presumption is that the said document belongs to that person. It is for the Assessing Officer to rebut that presumption and come to a conclusion or "satisfaction" that the document in fact belongs to somebody else. There must be some cogent material available with the Assessing Officer before he/she arrives at the satisfaction that the seized document does not belong to the searched person but to somebody else. Surmise....