TMI Blog2004 (12) TMI 49X X X X Extracts X X X X X X X X Extracts X X X X ..... red by K. S. Radhakrishnan J.- Whether the Assessing Officer has got jurisdiction to make an assessment under section 158BC read with section 158BD of the Income-tax Act in the absence of search conducted under section 132 of the Act in the premises of the assessee, is the question posed before us. The Tribunal took the view that since no search has been conducted under section 132 of the Income-tax Act in the premises of the assessee in respect of his business, it would be illegal to make an assessment under section 158BC read with section 158BD as has been done by the Assessing Officer. The assessee, a partnership firm engaged in the business of manufacture and sale of note books, greeting cards, X mas cards, etc., has been assessed t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... no jurisdiction to make an assessment under section 158BC read with section 158BD and, hence, the assessment be cancelled. We are surprised to note that the Tribunal has accepted the stand taken by the assessee. Had the Tribunal taken pains to read section 158BD, there would have been no doubt about the Assessing Officer's jurisdiction to make assessment under section 158BC read with section 158BD even if search was not conducted in the premises of the assessee under section 132 of the Act. In this connection we may refer to sections 158BC and 158BD, as follows: "158BC. Where any search has been conducted under section 132 or books of account, other documents or assets are requisitioned under section 132A, in the case of any person, th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pass an order of assessment and determine the tax payable by him on the basis of such assessment; (d) the assets seized under section 132 or requisitioned under section 132A shall be retained to the extent necessary and the provisions of section 132B shall apply subject to such modifications as may be necessary and the reference to 'regular assessment' or 'reassessment' in section 132B shall be construed as references to 'block assessment'. 158BD. Where the Assessing Officer is satisfied that any undisclosed income belongs to any person, other than the person with respect to whom search was made under section 132 or whose books of account or other documents or any assets were requisitioned under section 132A, then, the books of account ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... v. Harsh Prakash [2001] 251 ITR 608, wherein the court held as follows: "A bare reading of the provisions of section 158BD (quoted above) would show that for taking action under the said section, the Assessing Officer is merely required to be satisfied that the books of account or other documents or assets found in the search show undisclosed income of the person other than one against whom the search was conducted. Merely because no books of account or other documents or assets were found in the search against the two above named persons, it cannot be said that no action for alleged undisclosed income was called for against the petitioner under section 158BD. The expression 'undisclosed income' had been defined to include income based on ..... X X X X Extracts X X X X X X X X Extracts X X X X
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