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2019 (2) TMI 1471 - HC - Income TaxValidity of assessment u/s 153C - satisfaction requirement of section 153BD undisclosed income belongs to some “other person” - search was declared invalid in case of original person - HELD THAT:- For the purpose of assessment under section 153A of the Act, the validity of the authorisation is imperative; whereas in case of an assessment under section 153C, it is handing over of the books of account or documents or assets seized or requisitioned which is material. Once the AO of the other person is in receipt of the books of account or documents or assets seized or requisitioned, and proceeds further with the assessment, such assessment would not be rendered invalid on account of the search having subsequently held to be invalid. Provisions of Section 158BD & 153C are more or less in pari materia.- In the light of the decision of the Supreme Court in Pooran Mal [1973 (12) TMI 2 - SUPREME COURT) as well as Gunjan Girishbhai Mehta [1973 (12) TMI 2 - SUPREME COURT], merely because the original search is held to be invalid, the consequential action under section 153C of the Act would not become invalid. As held by the Supreme Court in Gunjan Girishbhai Mehta (supra), when the assessee has participated in the proceedings for assessment, the information discovered during the course of search, if capable of generating satisfaction for issuing notice under section 153C, cannot altogether become irrelevant for further action under section 153C - ITAT has erred in quashing the assessment proceedings under section 153C of the Act initiated against the assessee on the ground that the authorisation of search under section 132 of the Act was quashed in the case of the searched person. - Decided in favour of the revenue
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