TMI Blog2011 (8) TMI 848X X X X Extracts X X X X X X X X Extracts X X X X ..... ribunal, Lucknow Bench in I.T.A No. 525/Luc/2007 for the block period 1.4.1996 to 17.12.2002. 2. This appeal was admitted by a Division Bench of this court on 29.7.2008 on the following substantial questions of law:- "1. Whether on the facts and in the circumstances of the case the Income Tax Appellate Tribunal was justified in law in confirming the order of the CIT(A) who deleted all the additions in holding the assessment void ab initio. 2. Whether on the facts and in the circumstances of the case the Income Tax Appellate Tribunal has erred in law in holding that the recording of satisfaction is prerequisite for initiating proceedings U/s 158 DB. ( i ) As per provisions of section 158BD, if the A.O. satisfied that any und ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... seizure operation was carried out in the premises of Jamuna Prasad Kanhiya Lal group and simultaneously a survey was conducted at the business premises. During search, certain incriminating documents, books were found. Accordingly, a notice u/s 158 BD was issued to the assessee on 24.5.2004. The assessee filed its return showing undisclosed income at ' NIL ' on 10.9.2001. However, on 31.5.2006 the assessment under section 158BD /144 of the Income Tax Act was framed by the Assessing Officer. Being aggrieved with the assessment order, the assessee filed an appeal before the first appellate authority who observed that no valid satisfaction, as required, had been recorded by the Assessing Officer prior to initiating proceedings under section 15 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ly, in the instant case Assessing Officer has not recorded the 'satisfaction' before initiating proceedings under section 158BD. Section 158BD is reproduced hereunder:- 158 BD- Where the Assessing Officer is satisfied that any undisclosed income belongs to any person, other than the person with respect to whom search was made under section132 or whose books of account or other documents or any assets were requisitioned under section 132 a, then the books of account, other documents or assets seized or requisitioned shall be handed over to the Assessing Officer having jurisdiction over such other person and that Assessing Officer shall proceed under section 158BC against such other person and the provisions of this Chapter shall apply acco ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... no books of account or documents belonging to the petitioner were found in the search, it could not be said that there was no scope for action under section158 BD." 10. Admittedly, in the instant case the Assessing Officer has not recorded his satisfaction which is mandatory before initiating proceedings under section 158BD. When it is so, then we find no reason to interfere with the impugned order passed by the Tribunal in view of the settled position of law as mentioned above. Hence, the impugned order passed by the Tribunal along with the reasons mentioned therein is hereby upheld. 11. The answer to all the substantial questions of law is in favour of the assessee and against the revenue. 12. The appeal is dismissed. - - T ..... X X X X Extracts X X X X X X X X Extracts X X X X
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