TMI Blog2010 (11) TMI 631X X X X Extracts X X X X X X X X Extracts X X X X ..... It is only the satisfaction of the Assessing Officer of the person in respect of whom the search is conducted that is relevant - Held that the Tribunal has correctly applied the law as laid down by the Supreme Court in the case of Manish Maheshwari v. Asstt. CIT [2007 -TMI - 2889 - SUPREME COURT OF INDIA] in arriving at the conclusion that the proceedings under section 158BD/BC in respect of the assessee were without jurisdiction - Thus, the appeal is dismissed accordingly. - IT APPEAL NOS. 714 AND 730 OF 2009 - - - Dated:- 23-11-2010 - A.K. SIKRI AND SURESH KAIT, JJ. Sanjeev Sabharwal for the Appellant. Dr. Rakesh Gupta and Ms. Poonam Ahuja for the Respondent. JUDGMENT A.K. Sikri, J. A search was conducted in the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nsactions have been stated by Shri Sunil Bhala to be not pertaining to M/s. GCB Capital Finance (P.) Ltd. A copy of the statement of Shri Sunil Bhala and a copy of assessment order in the case of M/s. GCB Capital Finance (P.) Ltd. is being forwarded to you for reference and necessary action. As communicated earlier, the seized records are lying with the undersigned and these may be perused at any time during office hours by yourself or by any Inspector of Income-tax authorized for this purpose. Yours faithfully (R.K. Jha) Dy. CIT, Circle 12(1), New Delhi" 2. The notices to these assessees were initially issued under section 158BC of the Act which proceedings were dropped and thereafter notices under section 158BD of the Act wer ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he concerned Assessing Officer, who is the Assessing Officer of the person other than the person whose premises are searched, Assessing Officer has to hand over the records of the case. We have already reproduced the exact wording of the letter by which the case was forwarded to the Assessing Officer of these respondents. Nowhere any satisfaction is recorded by the Assessing Officer of M/s. GCB Capital stating that he was satisfied that the income for this block period in respect of assessee had escaped assessment. Further, it is also clear that the records were also not sent, instead he merely stated that these records were available with the forwarding Assessing Officer which could be "perused" by the concerned Assessing Officer during th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he Supreme Court in the case of Manish Maheshwari v. Asstt. CIT [2007] 289 ITR 341/159 Taxman 258 to set aside the proceedings on this ground. Following discussion, therefrom, is of advantage:- "14. From the above, we find that satisfaction of the Assessing Officer must be recorded to the effect that there is undisclosed income belonging to any person, other than the person in respect of whom the search was made under section 132 of the said Act. The second condition is that the books of account or other documents or assets seized or requisitioned have to be handed over to the Assessing Officer having jurisdiction over such person (i.e., the person other than the person in respect of whom the search was made). It is only thereafter that t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... having jurisdiction over such other person. It is from that point on, that the Assessing Officer of such other person is required to proceed in accordance with the other provisions of Chapter XIV and issue notice under section 158BC. 16. The learned Counsel for the appellant also submitted that the satisfaction of the Additional Director of Income-tax was sufficient compliance with the provisions of section 158BD. We cannot agree with this submission because the plain reading of the provisions of section 158BD specify that it is the Assessing Officer who is to be satisfied that there is any undisclosed income belonging to such other person. The Additional Director of Income-tax (Investigation) was not the Assessing Officer of Yadav Co. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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