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2009 (1) TMI 364 - AT - Income TaxBlock assessment u/s 158BD - Search u/s132 - Incriminating documents found - assessment passed u/s 158BD is bad in law and void ab initio as no ''satisfaction'' has been recorded by AO - assessee has disclosed income u/s 44AE in respect of two vehicles taken on lease - HELD THAT:- One has to ascertain the satisfaction from the record of the person whose premises has been searched and in whose case order u/s 158BC has been passed. In the instant case, the record of M/s. H.E. Distilleries Pvt. Ltd. along with assessment order show the requisite satisfaction. The word 'satisfaction' as per the book Advance Law Lexicon by P. Ramanadha Iyer (2005 Edition) has mentioned that the phrase 'satisfaction' occurring in many taxing statutes means simply 'makes up its mind' - Jiten & Co. v. Sales Tax Officer [1976 (12) TMI 174 - DELHI HIGH COURT]. The phrase 'is satisfied' means, simply 'makes up its mind'. Whenever legislation used the word 'satisfied' it must mean 'reasonably satisfied'. It is clear that the assessee admitted at the time of search that he is having unaccounted income from the transportation of unaccounted production of liquor. In a letter addressed to the revenue, he admitted such income and stated that he will declare such income. While making assessment in the case of M/s. H.E. Distilleries Pvt. Ltd. u/s 158BC, the person managing the affairs of M/s. H.E. Distilleries Pvt. Ltd. admitted that transportation is done by the assessee. Thus, it is clear that the assessee was in receipt of an amount which consists of income liable to tax though such income was not declared in the return of income filed after the search. A device was adopted to show the income u/s 44AE. Such device cannot be accepted in view of the decision of Hon'ble Apex Court in the case of McDowell & Co. Ltd. v. CTO [1985 (4) TMI 64 - SUPREME COURT]. Therefore, we feel that requisite satisfaction has been recorded by AO who was having jurisdiction over the person, who was raided and such satisfaction can be clearly inferred from the record which includes the assessment order u/s 158BC and other relevant documents. Hence, the order passed by AO is in accordance with section 158BD.
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