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2016 (6) TMI 526 - AT - Income TaxValidity of assessment u/s 158BD - Held that:- The provisions of sec. 158BD, in our view, contemplates that the satisfaction should be arrived in an objective manner by the AO of searched person and thereafter, he should hand over the relevant documents to the AO of other person. A careful reading of the letter dated 21.8.2000, referred above, would show that the AO of the searched person has merely given the facts relating to the admissions made by Shri Gyanchand R Madhani and further refers to the disclosure made on account of inflated expenses. While section 158BD refers to the “undisclosed income”, the AO did not refer to any undisclosed income emanating from the documents found during the course of search. The AO simply refers to the admission made in the sworn statement and also to the disclosure relating to incriminating documents, but not to the undisclosed income. It is pertinent to note that the admission made in the sworn statement taken u/s 132(4) of the Act is rebuttable one. Accordingly, we are of the view that the AO of the searched person has merely intimated the details of search proceedings to the AO of the assessee and the same, in our considered view, shall not constitute “satisfaction” about “undisclosed income” as contemplated u/s 158BD of the Act. Accordingly, we find merit in the contentions of the assessee on the legal issue. Accordingly, we hold that the “satisfaction” mandated u/s 158BD of the Act was not recorded by the AO of the searched person. In view of the above, we quash the assessment order passed by the AO. - Decided in favour of assessee.
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