TMI Blog2010 (1) TMI 974X X X X Extracts X X X X X X X X Extracts X X X X ..... assessment years 1998-99 to 2001-02 were processed under section 143(1) of the Act. A search and seizure operation was carried out at the premises of one Shri Ashish Munjal on February 14, 2001. According to the Assessing Officer an information for initiation of proceedings under section 158BD in the case of the assessee was given by the Deputy Commissioner of Income-tax, Central Circle-1, Ludhiana, on December 20/24, 2002. Notice under section 158BD/158BC was issued on September 18, 2003. It emerges out from the assessment order that notice sent through speed post at M-51, Greater Kailash-1 Market had been returned back by the postal authorities with the remark "no such person at M-51, Greater Kailash-1 is available". Thereafter the Assessing Officer had served the notice on the director Shri Surinder Kapoor at his residence at RDC-77, Ghaziabad, on October 20, 2003. The Assessing Officer has framed block assessment under section 158BD read with section 144 of the Income-tax Act whereby he determined the undisclosed income for the block period at Rs. 76,04,911. Dissatisfied with the assessment order the assessee carried the matter in appeal before the learned Commissioner of In ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssessee. He has reproduced the letter written by the Deputy Commissioner of Income-tax, Central-1, Ludhiana, who has a jurisdiction over Shri Ashish Munjal. The learned Commissioner called for a remand report from the Assessing Officer. On a detailed analysis of the facts and circumstances the learned Commissioner of Income-tax (Appeals) reached a conclusion that no satisfaction was recorded by the Assessing Officer of the searched person. Accordingly he quashed the assessment order. The learned Commissioner of Income-tax (Appeals) has also observed that no valid service of notice was effected upon the assessee before taking up the proceeding under section 158BD of the Act. The learned Departmental representative has applied for an adjournment on the ground that he has written to the Assessing Officer for supply of information whether any satisfaction was recorded other than the one reproduced by the learned Commissioner of Income-tax (Appeals), by the Assessing Officer at Ludhiana while processing the block assessment in the case of searched person. Learned counsel for the assessee opposed the prayer of the learned Departmental representative. He pointed out that the case was li ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... submitted that the learned Commissioner of Income-tax (Appeals) is not justified to quash the assessment order. Learned counsel for the assessee on the other hand submitted that in paragraph 4 of this letter by the learned Deputy Commissioner of Income-tax, Central Circle 1, Ludhiana, has categorically left it to the Assessing Officer of the assessee to record his satisfaction for initiating the proceedings under section 158BD of the Act. He relied upon the order of the learned Commissioner of Income-tax (Appeals) and the decision of the hon'ble Supreme Court in the case of Manish Maheshwari [2007] 289 ITR 341 apart from the decision relied upon by the learned Commissioner of Income-tax (Appeals). We have duly considered the rival contentions and gone through the record carefully. Section 158BD has a direct bearing on the controversy. Therefore it is salutary upon us to take note of this section. "158BD. Where the Assessing Officer is satisfied that any undisclosed income belongs to any person, other than the person with respect to whom search was made under section 132 or whose books of account or other documents or any assets were requisitioned under section 132A, then, the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f Shri Ashish Munjal, on February 14, 2001 by Deputy Director of Income-tax, Unit-VII(4), New Delhi. The following premises were covered. (a) Residence of Sh. Ashish Munjal, S-23, Greater Kailash, New Delhi. (b) Office premises of Sh. Ashish Munjal, at M/s. Hero Cycles Ltd., Unit-II, Sahibabad, Ghaziabad. (c) Farm House No. 17, Village Satbari, Mehrauli, New Delhi. The farm house is owned by M/s. Flair Builder P. Ltd. having office at space number UG-1, M 51, Greater Kailash-1 Market, New Delhi. The return of income for the assessment year 2001-02 has been filed by the company in your office on October 31, 2001 vide receipt No. 2838. 2. During the course of search at farm houses, certain papers, bills, challans and registers indicating the cost of construction of the farm house were found and seized. The Deputy Director of Income-tax has commented that total cost of construction as per seized material works out to Rs. 98.41 lakhs whereas only an expenditure of Rs. 22 lakhs has been reflected in the books of account of the company. The Deputy Director of Income-tax has held that an amount of Rs. 78.41 lakhs represents the unaccounted investment to be taxed in the hands of M/ ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
