TaxTMI 
TaxTMI 
2018 (12) TMI 1968
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....g the facts of the case and submissions made before him. WITHOUT PREJUDICIE TO THE ABOVE 3. That on the facts and in the circumstances of the case, the Ld. CIT(A) also erred in maintaining addition of Rs.68926888/- as made by the Assessing Officer on account of Project at Satellite Hills without properly appreciating the facts of the case and submission made before him. 4. The assessee reserves its right to add, alter, modify or amend the grounds of appeal as and when required." 2. The facts giving rise to the present appeal are that a search and seizure operation u/s 132 of the Income Tax Act, 1961 (hereinafter called as 'the Act') were conducted at the various premises, persons and concerns commonly known as "Satellite Hills" on 19.11.2009. The search operation was initiated in the case of M/s. M/s. Phoenix Devcons Pvt. Ltd. and others on 19.11.2009. It is alleged by the A.O. that during the search operation, various documents/loose papers were seized from the premises of M/s. Phoenix Devcons Pvt. Ltd., 434-Orbit Mall, Indore belonging to M/s. Avalanche Reality Pvt. Ltd. It is also recorded that copies of documents related to the assessee and on the ....
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.... found to be wanting, any action taken would be illegal and not in confirmity with the law. 5. Ld. D.R. supported the order of the authority below and submitted that law does not require the assessing officer of the searched person to make a written note. He has to just satisfy himself and transfer the material to the concerned A.O., who thereafter in accordance with law would issue a notice calling upon the assessee to file return of income and accordingly assess the income. He submitted that throughout, the assessee has not raised any objection with regard to the satisfaction note in the entire proceedings. The assessee had attended the assessment proceedings, filed details, thereafter he filed an appeal before Ld. CIT(A). Before both the authorities, the assessee has not taken any ground that no satisfaction has been recorded. He submitted that no such ground was taken even before the Ld. CIT(A). Under these facts, the assessee cannot be allowed to take an objection that no satisfaction has been recorded and the assessment proceedings are vitiated on this account. 6. We have heard the rival submissions, perused the materials available on record and gone through the orders ....
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....ection 153A shall be construed as reference to the date of receiving the books of account or documents or assets seized or requisitioned by the Assessing Officer having jurisdiction over such other person:] [Provided further that the Central Government may by rules made by it and published in the Official Gazette, specify the class or classes of cases in respect of such other person, in which the Assessing Officer shall nto be required to issue notice for assessing or reassessing the total income for six assessment years immediately preceding the assessment year relevant to the previous year in which search is conducted or requisition is made [and for the relevant assessment year or years as referred to in sub-section (1) of section 153A] except in cases where any assessment or reassessment has abated.] 8. A bare reading of the above provision of law suggests that the satisfaction of the A.O. of the searched person is a sine-qua-non to the effect that "(a) any money, bullion, jewellery or other valuable article or thing, seized or requisitioned belongs to; or (b) any books of accounts or documents, seized or requisitioned pertains or pertain to, for any information cont....
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....ceed against the person other than the person referred to in Section 153A, inspite of the action under Section 139, 147, 148, 149, 151 and 153 of the I.T. Act. However, on closer scrutiny of the two provisions, it is indisputable that, these provisions are machinery provisions and have been provided for in the statute book for the purpose of carrying out assessment of a person other than the searched person under Section 132 or 132A of the I.T. Act in relation to Section 158BD; and Section 153A in relation to Section 153C. Notably, the purpose underlying both these provisions is similar, even though Section 153C does not specifically refer to the expression "undisclosed" income. However, in both the situations, the Assessing Officer engaged in carrying on search of the assessee within his jurisdiction, if seizes or requisitions the items (books of account or other documents or any assets for Section 158BD; and money, bullion, jewellery or other valuable article or thing or books of account or documents for Section 153C), is expected to handover those items to the Assessing Officer having jurisdiction over such other person and thereafter the Asse....
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....ection 153C belongs or belong to a person (other than the person referred to in Section 153A), being sine qua non. He cannot assume jurisdiction to transmit those items to another file which incidentally is pending before him concerning other person (person other than the person referred to in Section 153A). The question as to whether that may influence the opinion of the Assessing Officer having jurisdiction over such other person, also cannot be the basis to take any other view. As a matter of fact, the other Assessing Officer to whom the items are handed over, before issuing notice must himself be satisfied after due verification of the items received and the disclosures made by the other person in the returns for the relevant period already filed by the other person before him. For the same reason, we must reject the argument of the Department that the discretion of the Assessing Officer having jurisdiction will be impaired in any manner, if he were to hold a different view. Similarly, as there is no provision either express or implied (in the Act) to dispense with the requirement of satisfaction, if the Assessing Officer happens to be the sa....