TMI Blog2014 (2) TMI 1168X X X X Extracts X X X X X X X X Extracts X X X X ..... is also required to hand over the books of account or other documents or assets seized to the Assessing Officer having jurisdiction over such non-searched person and, thereafter, the Assessing Officer who has jurisdiction would proceed under section 158BC, against the person who has not been searched. In the instant case the Tribunal committed no error in upholding the version of the assessee-respondent. Recording of satisfaction under section 158BD being absent, without assigning separate reasons in this case, order impugned is upheld. - Decided in favour of assessee. - TAX APPEAL NO. 1141 of 2013 - - - Dated:- 10-2-2014 - MR. AKIL KURESHI AND MS SONIA GOKANI, JJ. FOR THE APPELLANT : MR KM PARIKH, ADVOCATE ORDER Ms. S ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ferred by the Revenue raising the following substantial questions of law for our consideration : A. Whether, on the facts and in the circumstances of the case, the Income-tax Appellate Tribunal has erred in law in quashing and set ting aside the notice under section 158BD of the Act and the assess ment order passed under section 158BD read with section 158BC(c) of the Act in the case of the assessee by holding that the reasons recorded for issuance of the notice under section 158BD of the Act by the Assessing Officer cannot be said to be valid satisfaction for issu ance of notice under section 158BD of the Act and thereby, ignoring the fact that the satisfaction of the Assessing Officer was evident from the reasons so recor ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the case laws on the subject particularly relying on case of Manish Maheshwari v. Asst. CIT [2007] 289 ITR 341 (SC). It was held that for taking recourse to the block assessment under section 158BC in relation to the person not searched, whenever search has been conducted under section 132 or the documents have been requisitioned under section 132A, the Assessing Officer of the searched person needs to record his satisfaction that undisclosed income belongs to the person other than the person with respect to whom search was carried out under section 132 of the Act. He is also required to hand over the books of account or other documents or assets seized to the Assessing Officer having jurisdiction over such non-searched person and, thereaft ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r affect the validity of the proceedings. 14. However, the vital and mandatory requirement of recording the satisfaction under section 158BD is concerned, as has been rightly noted by the Tribunal, such satisfaction is absent as far as Jayraj Group is concerned in whose case search under section 132 of the Income-tax Act has been carried out by the department. As such an essential requirement prior to initiating the proceedings under section 158BC, has not been fulfilled, the Tribunal is justified in quashing the notice issued against the assessee respondent and the assessment order passed pursuant thereto. As the order of the Tribunal is in consonance with the law laid down on the subject in case of Manish Maheshwari (su ..... X X X X Extracts X X X X X X X X Extracts X X X X
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