TMI Blog2014 (12) TMI 188X X X X Extracts X X X X X X X X Extracts X X X X ..... on the assessee on whom the search was conducted and proceedings u/s 158BD are to be initiated where the concerned AO has received an information or intimation from Assessing Officer of the person on whom the search was conducted - no material was brought on record whether any intimation or information was received by the AO of the assessee from the AO of Nem Chand Gupta i.e. the person on whom search was conducted - the AO of the person searched and the AO of the assessee were the same as there is an order u/s 127 - Violation of the requisite and mandatory requirement would result in annulment of assessment u/s 158BD r.w. section 158BC – relying upon Commissioner of Income Tax vs. Calcutta Knitwears, Ludhiana [2014 (4) TMI 33 - SUPREME CO ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e, we may record that the grounds of appeal wrongly record and state that search and seizure operations were carried out at the premises of the assessee. This fact does not borne and is contrary to the assertion made in the assessment order. Subsequently, the jurisdiction of the respondent assessee was transferred to DCIT, Special Range 13 in exercise of power and order under Section 127 of the Act. The said order is dated 20.02.1997. Thereupon, the Deputy Commissioner of Income Tax Special Range 13, New Delhi, issued notice under Section 158BC of the Act dated 06.03.1997 which was duly served on the respondent assessee and return of income for block period was filed in Form No. 2B on 17.04.1997. Block assessment order was passed on 29.08.1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rence between the notice u/s 158BD and notice u/s 158BC. As we have already stated that assessee deserved to succeed on this issue because the provisions of sections 158BC and 158BD are separate and distinct. The proceedings u/s 158BC can be initiated only on the assessee on whom the search was conducted and proceedings u/s 158BD are to be initiated where the concerned AO has received an information or intimation from Assessing Officer of the person on whom the search was conducted. No such material was brought on record that whether any intimation or information were received by the AO from the Assessing Officer of Shri Nem Chand Gupta, on whom the search was conducted. Therefore, it cannot be stated that there is no material difference be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ome belongs to a third person i.e. the person other than the person who was searched or whose documents, account books or assets were requisitioned. Thereafter he should handover the said documents to the Assessing Officer of the third person. We would assume in the present case that the Assessing Officer of the person searched and the Assessing Officer of the respondent assessee were the same as there is an order under Section 127 of the Act. However, this would not mean that the Assessing Officer of the person searched should not have recorded the satisfaction before notice was issued under Section 158BD read with Section 158BC of the Act. The requirement of Section 158BD is that the Assessing Officer of the person searched or against who ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f the Act. XXXX 41. We would certainly say that before initiating proceedings under Section 158BD of the Act, the assessing officer who has initiated proceedings for completion of the assessments under Section 158BC of the Act should be satisfied that there is an undisclosed income which has been traced out when a person was searched under Section 132 or the books of accounts were requisitioned under Section 132A of the Act. This is in contrast to the provisions of Section 148 of the Act where recording of reasons in writing are a sine qua non. Under Section 158BD the existence of cogent and demonstrative material is germane to the assessing officers satisfaction in concluding that the seized documents belong to a person other than t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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