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2013 (1) TMI 162 - HC - Income TaxJurisdiction of AO u/s 158BD - Undisclosed income of any other person - search under Section 132 - AO treated the claim of the assessee regarding receipt of service charges as income from house property Whether the notice of Search & Seizure dated 28.10.1997 satisfied the requirement of Section 158BD? - Held that:- As decided in MANISH MAHESHWARI and INDORE CONSTRUCTION P. LTD. Versus COMMISSIONER OF INCOME-TAX [2007 (2) TMI 148 - SUPREME COURT OF INDIA] the conditions precedent for invoking the provisions of Section 158-BD are required to be satisfied before the provisions of the said chapter are applied in relation to any person other than the person whose premises had been searched or whose documents and other assets had been requisitioned under Section 132-A of the Act. There is no recording of any satisfaction that any undisclosed income belongs to the respondent/assessee. The communication dated 28.10.1997 merely indicates that books of accounts pertaining to the respondent assessee/assessees were seized and were lying in the custody of the Assessing Officer in respect of the Mody Group of cases. It was further indicated in the communication that since the AO at New Delhi had jurisdiction over the assessee, it was proposed that necessary proceedings may be adopted against the assessee in accordance with the provisions of chapter XIVB of the said Act. There is no satisfaction recorded by the said AO of the Mody Group of companies that any undisclosed income belonged to the assessee. As such the very first mandatory condition precedent for assuming jurisdiction under Section 158BD and subsequently under Section 158 BC has not been satisfied. This failing on its own would render the entire proceedings to be without jurisdiction - in favour of assessee.
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