TMI Blog2017 (2) TMI 553X X X X Extracts X X X X X X X X Extracts X X X X ..... n 69C of the Act is academic. In view of the above reasons and particularly the finding of fact that seized document which forms the basis of the present proceedings, do not belong to the petitioner and the same not being shown to be perverse - Decided in favour of assessee - Income Tax Appeal No. 83 of 2014 WITH INCOME TAX APPEAL NO.150 OF 2014 - - - Dated:- 7-2-2017 - M. S. Sanklecha And A. K. Menon, JJ. Mr. Ashok Kotangale with Ms.Padma Divakar for the appellant Mr. J.D. Mistri with Mr.P.C. Tripathi i/b Raj Darak for the respondent ORDER P. C. 1. These two Appeals under Section 260A of the Income Tax Act, 1961 (the Act) challenges the common impugned order dated 22nd March, 2013 passed by the Income Tax Appell ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f which the Assessing Officer after recording satisfaction under Section 153C of the Act proceeded to initiate proceedings in respect of both respondents assessees before us. 4. The Tribunal by the impugned order found that the documents seized from possession of Mr.Dilip Dherai did not belong to the assessee. Consequently, it held that the Assessing Officer did not have jurisdiction to initiate proceedings under Section 153C of the Act, as at the relevant time jurisdiction of Assessing Officer to proceed consequent to the search is only when money, bullion, jewellery or other valuable article or thing or books of accounts or documents seized or requisitioned belongs or belonged to a person other than the person who has been searched, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rior to 1st June, 2015 the proceedings under Section 153C of the Act could only be initiated/proceeded against a party - assessee if the document seized during the search and seizure proceedings of another person belonged to the party - assessee concerned. The impugned order records a finding of fact that the seized documents which formed the basis of initiation of proceedings against the respondent assessees do not belong to it. This finding of fact has not been shown to us to be incorrect. Further, the impugned order placed reliance upon a decision of Gujarat High Court in Vijaybhai Chandrani vs. ACIT 333 ITR Page 436 which records that the condition precedent for issuing notice under Section 153C of the Act is that the document found dur ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e ignored at the alter of suspicion. The Revenue has to strictly comply with Section 153C of the Act. We are of the view that non satisfaction of the condition precedent viz. the seized document must belong to the respondent assessee is a jurisdictional issue and non satisfaction thereof would make the entire proceedings taken thereunder null and void. The issue of Section 69C of the Act can only arise for consideration if the proceedings under Section 153C of the Act are upheld. Therefore, in the present facts, the issue of Section 69C of the Act is academic. 8. In view of the above reasons and particularly the finding of fact that seized document which forms the basis of the present proceedings, do not belong to the petitioner and th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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