Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2021 (7) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2021 (7) TMI 372 - AT - Income TaxValidity of 158BD proceedings - date on which jurisdiction u/s 158BD was assumed - HELD THAT:- We find from the letter from the AO of the searched person to AO of the assessee dated 26th August, 1997, it was requested to take over the books of account for the purpose of section 158BD. We find, the AO of the searched person, vide letter dated 26th February, 1998 to the ACIT, Inv. Wing, Faridabad, had handed over the books of accounts pertaining to the assessee which otherwise shows that prior to 04.09.1997, i.e., the date on which jurisdiction u/s 158BD was assumed, the books of account were not handed over to the assessee. We find in the case of Manish Maheshwari vs. ACIT & Anr. [2007 (2) TMI 148 - SUPREME COURT] has observed that before the provisions of section 158BD of the IT Act, 1961 are invoked against a person other than the person whose premises have been searched u/s 132 or documents and other assets have been requisitioned u/s 132A, the conditions precedent have to be satisfied. One of the conditions is that the books of account or other documents or assets seized or requisitioned have to be handed over to the AO having jurisdiction on such other person and, thereafter only the AO has to proceed u/s 158BD against such person. Similar view has been taken in various other decisions relied on by the ld. Counsel. Since the AO in the instant case has taken recourse to section 158BD before receipt of the seized material, therefore, the 158BD jurisdictional conditions cannot be said to have been met. Therefore, the entire proceedings u/s 158BD/143(3) are vitiated and, therefore, such 158BD proceedings which are not in accordance with the law are quashed. - Appeal filed by the assessee is allowed.
|