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2018 (8) TMI 1310 - AT - Income TaxAssessment u/s 153C r.w.s 143(3) - agriculture land - capital asset u/s 2(14) or not - AO observed that the land owned by the assessee at Village Rojka Gujar, District- Sohna, Haryana was a barren and rocky terrain, which was not cultivable and no plantation activities were also permissible on the said land. Held that:- A comparative reading of the pre-amended and amended provisions of section 153C clearly shows that the requirement to initiate proceedings u/s 153C in case of a person other than the person referred to in section 153A as per the pre-amended provisions was only that the books of account or documents seized belong to such person and the same are handed over to the Assessing Officer having jurisdiction over such other person. The amended provisions of section 153A, however, have made a material change in this requirement inasmuch as in addition to the satisfaction of the Assessing Officer having jurisdiction over a searched person about any books of account or documents seized being pertained to any other person or any information contained therein being related to such person and handing over of such books of account or documents seized to the Assessing Officer having jurisdiction over such other person, there is an additional requirement that the Assessing Officer having jurisdiction over such other person shall proceed against such other person in accordance with the provisions of section 153A only if he is satisfied that the books of account or documents seized have a bearing on the determination of the total income of such other person. As already discussed, both the seized documents belonging to the assessee in the present case as relied upon by the Assessing Officer in the satisfaction note were not having any bearing on the determination of the income of the assessee for the year under consideration. As a matter of fact, not only no addition on the basis of the said documents was made by the Assessing Officer in the assessment completed u/s 153C/143(3), but even there was no reference whatsoever to the said documents in the said assessment. The initiation of proceedings u/s 153C in the case of the assessee thus was bad in law and the assessment made by the Assessing Officer u/s 153C/143(3) in pursuance thereof is liable to be cancelled being invalid. We order accordingly and allow the additional ground raised by the assessee. - assessment order quashed - Decided in favor of assessee.
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