TMI Blog2014 (2) TMI 521X X X X Extracts X X X X X X X X Extracts X X X X ..... rger public interest in that it places reasonable fetters upon the jurisdiction of the concerned AO who might otherwise be left with uncontrolled discretion in such matters - Section 158BE expressly states that the satisfaction is to be recorded by the AO with respect to the need to issue notice to the third party before he hands-over possession of books and assets seized or requisitioned, to the AO of such third party – there was no substantial question of law arises – Decided against Revenue. - ITA 2055/2010 - - - Dated:- 6-2-2014 - S. Ravindra Bhat And Rajiv Shakdher,JJ. For the Appellant : Sh. Balbir Singh, Sr. Standing Counsel with Sh. Rupender Sinhmar and Sh. Abhishek Singh Baghel, Advocates. For the Respondent : Nemo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e basis of the above facts and circumstances, it is held that the communication dated 14.7.2003 by the AO holding jurisdiction over Major Aggarwal cannot be constructed to be the satisfaction as required by the provisions of Sec. 158BD. This letter was written after the completion of the Block Assessment of Shri Manoj Aggarwal. Therefore, this cannot be treated as a valid satisfaction, in the light of the judicial pronouncements discussed above. Secondly, it is seen that the notice u/s 158BD was issued on 14.6.2005 which is approximately 34 months after the framing of the assessment of Shri Manoj Aggarwal which was made on 29.8.2002. Therefore, it cannot be said that the notice was issued within reasonable time. Hence, in the light of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ry limited circumstances and that the present case did not constitute one such exception. 6. This Court has considered the submissions. The assessment in this case, of the person searched, was completed on 29.08.2002. The drift of reasoning of the CIT (Appeals) and the Tribunal appears to be that if the AO who deals with the assessment of third parties, like the assessee in this case were to record his satisfaction, based upon the materials he goes by in the case of assessee over whom he has jurisdiction, such satisfaction is to be recorded during the course of assessment proceedings of the person searched. In other words, the jurisdiction to issue notice itself under Section 158BD and the consequent time period prescribed under Secti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... k assessment and was subject to such notice under Section 158BD, to complete the assessment and also to record satisfaction within the basic period of two years. This interpretation, in the opinion of the Court, not only furthers the intention of the Parliament, but also sub-serves the larger public interest in that it places reasonable fetters upon the jurisdiction of the concerned AO who might otherwise be left with uncontrolled discretion in such matters. Fourthly, Section 158BE expressly states that the satisfaction is to be recorded by the AO with respect to the need to issue notice to the third party before he hands-over possession of books and assets seized or requisitioned, to the AO of such third party. This too clearly has a refer ..... X X X X Extracts X X X X X X X X Extracts X X X X
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