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2018 (4) TMI 1375 - SUPREME COURTValidity of Second (Fresh) Notice u/s 158BD - search proceedings - First notice u/s 158BC was issued to the firm - Assessing Officer, who is assessing the Firm as well as the Appellant, is the same person - Held that:- Section 158BD makes it clear that the AO needs to satisfy himself that the undisclosed income belongs to any person other than the person with respect to whom the search was made under Section 132 or whose books of accounts or other documents or assets were requisitioned under Section 132A. Mere disclosure made by the present assessee before the authority cannot be the basis for reaching a satisfaction that any undisclosed income belongs to him unless the seized books of accounts or other documents or assets are perused, examined or verified by the concerned Assessing Officer. The very object of the Section 158BD is to give jurisdiction to the AO to proceed against any person other than the person against whom a search warrant is issued. Although Section 158BD does not speak of ‘recording of reasons’ as postulated in Section 148, but since proceedings under Section 158BD may have monetary implications, such satisfaction must reveal mental and dispassionate thought process of the Assessing Officer in arriving at a conclusion and must contain reasons which should be the basis of initiating the proceedings under Section 158BD. The order dated 14.08.2000, passed by the Additional Commissioner of Income Tax (Appeals), under Section 144A whereby he, inter-alia, directed the Assessing Officer to take the undisclosed income of the Appellant including from the benami business in the name of two other persons at an aggregate sum of ₹ 17 lakhs as against ₹ 14 lakhs declared by the Appellant in his block return was passed in contravention of law and is not sustainable in the eyes of law. Appeal dismissed - Decided against the assessee.
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