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2015 (9) TMI 1013 - AT - Income TaxValidity of proceedings u/s 153C - Held that:- The Assessing Officer of the person searched and such other person may be the same but these are two different assessees and, therefore, the Assessing Officer has to carry out the dual exercise, first as the Assessing Officer of the person searched in which he has to record the satisfaction, during the course of assessment proceedings of the person searched. After recording such satisfaction note in the file of the person searched, the same is to be placed in the file of such other person. Then, in his capacity as the Assessing Officer of such other person, he should take cognizance of such satisfaction note and thereafter issue notice under Section 153C. In this case, this exercise of recording the satisfaction during the assessment proceedings of the person searched has not been carried out. On the other hand, the Assessing Officer recorded the satisfaction in the case of such other person which does not satisfy the condition of assuming jurisdiction under Section 153C. Notices u/s 153C have been issued for Assessment Year 1999-2000 to 2004-2005. The only document on the basis of which the notices have been issued is an undated cheque found during the course of search at the premises of Kabhai Chauhan Group on 04.03.2005. An undated cheque found on 04.03.2005 cannot pertain to the previous years 1998-1999 to 2003- 04. It can pertain to previous year 2004-05 and thus, can be relevant only for Assessment Year 2005-06 and not in earlier years. Admittedly, there is no seized material in the years for which notices u/s 153C have been issued. the agreement between the tenant and the petitioner found from ‘S’ was held to be belonging to the assessee because it was not belonging to the person searched. However, cheque issued by the assessee was in the name of Vijay K. Chauhan i.e., the person of the Group which was searched. The cheque was found from the person upon whom the cheque was drawn. Therefore, in our opinion, the cheque “belongs to” the person upon whom it was drawn and cannot be said to be continued to “belonging to” the person who issued the cheque. Therefore, in our opinion, the conditions for issue of notice u/s 153C were not satisfied. - Decided in favour of assessee.
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