TMI Blog2016 (6) TMI 526X X X X Extracts X X X X X X X X Extracts X X X X ..... osed income emanating from the documents found during the course of search. The AO simply refers to the admission made in the sworn statement and also to the disclosure relating to incriminating documents, but not to the undisclosed income. It is pertinent to note that the admission made in the sworn statement taken u/s 132(4) of the Act is rebuttable one. Accordingly, we are of the view that the AO of the searched person has merely intimated the details of search proceedings to the AO of the assessee and the same, in our considered view, shall not constitute satisfaction about undisclosed income as contemplated u/s 158BD of the Act. Accordingly, we find merit in the contentions of the assessee on the legal issue. Accordingly, we hol ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pellate Tribunal Rules pleading that the assessing officer of the searched person did not record satisfaction as mandated u/s 158BD of the Act. The Tribunal, vide its order dated 29-12-2010, quashed the assessment order holding that the notice issued u/s 158BD is bad in law. In the proceedings before the Tribunal, the revenue had filed a letter 21.08.2000 issued by the assessing officer of the searched person to the AO of the assessee. The Tribunal passed the order on the presumption that the parties had agreed that there was no satisfaction recorded and the said fact was an admitted position. 4. The revenue filed a miscellaneous petition seeking recall of the order dated 29.12.2010 passed by the Tribunal on the plea that the revenue has ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ored for hearing would not be influenced in any manner by the observations made in the impugned order on the merits of the controversy. 6. Accordingly the appeal of the revenue and the cross objection of the assessee came to be heard by this bench of Tribunal. The Hon ble Bombay High Court, in its order dated23.01.2015 referred above, held that the assessee should be allowed to contest the petition filed under Rule 27 of the Appellate Tribunal Rules, wherein the assessee has contended that there was no satisfaction as mandated u/s 158BD of the Act. 7. The contention of the assessee is that the letter dated 21.08.2000 issued by the assessing officer of the searched person to the AO of the assessee was a mere intimation about a part ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ni Co. ₹ 10 lacs in the hands of M/s. Gyan Construction Co. ₹ 60 lacs in the hands of M/s. R.K. Chemical Disclosures are made on account of inflated expenses and incriminating documents found at the time of search action. Appraisal report of DDIT(Inv.), Unit VII(4), Mumbai, which is self explanatory. You are therefore requested to take necessary action at your end immediately. Copy of statement, warrant of authorisation and appraisal report are enclosed herewith. In case you require any further information/details, you may contact the undersigned when you feel free. Sd/- (S.B. RAJAPATI) ACIT, CIR. 25(3), Mumbai On a careful perusal of the letter cited above, we are of the view that the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... refers to the undisclosed income , the AO did not refer to any undisclosed income emanating from the documents found during the course of search. The AO simply refers to the admission made in the sworn statement and also to the disclosure relating to incriminating documents, but not to the undisclosed income. It is pertinent to note that the admission made in the sworn statement taken u/s 132(4) of the Act is rebuttable one. 11. Accordingly, we are of the view that the AO of the searched person has merely intimated the details of search proceedings to the AO of the assessee and the same, in our considered view, shall not constitute satisfaction about undisclosed income as contemplated u/s 158BD of the Act. Accordingly, we find meri ..... X X X X Extracts X X X X X X X X Extracts X X X X
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