TMI Blog2016 (5) TMI 1520X X X X Extracts X X X X X X X X Extracts X X X X ..... - - - Dated:- 17-5-2016 - SHRI S.V. MEHROTRA, ACCOUNTANT MEMBER AND SHRI SUDHANSHU SRIVASTAVA, JUDICIAL MEMBER For the Appellant : Shri Vinod Kumar Bindal, CA For the Respondent : Shri Ravi Jain, CIT Ld. DR Sh. S.L.Anuragi, DR ORDER PER SUDHANSHU SRIVASTAVA, JUDICIAL MEMBER This appeal is preferred by the assessee against the order passed by the Ld. CIT(A)-III, New Delhi wherein by the impugned order dated 7.10.2014, the assessee s appeal for assessment year 2007-08 has been dismissed both the on the legal ground as well as on merits. 2. The facts of the case, in brief, are that a search and seizure operation was carried out in the Modi Family Group on 9.11.2011. Durin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he time of search. The assessment was also challenged on merits. However, the assessee s appeal was dismissed and now the impugned order is being challenged by the assessee by taking as many as seven grounds but the ground germane to the whole controversy is ground no. 2 which is being taken up first for adjudication. Ground no. 2 reads as under:- 2. The first Appellate Authority erred in law and on facts in holding the issuance of notice u/s 153C for the AY 2007-08 as valid, even when it was barred by time limitation as on the date when the seized documents were handed over to the appellant s AO and, therefore, void ab-initio; which must be quashed. 4. The Ld. AR submitted that the assessment for the year in appeal i. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... XIV of the Act, which is titled procedure for assessment . Section 153A provides for the assessment in case of search or requisition. This section applies to a person in whose case a search is initiated under Section 132 or books of account etc. are requisitioned under Section 132A. The procedure prescribed under Section 153A is that the Assessing Officer shall call upon the assessee who is searched to furnish returns of income for six assessment years immediately preceding the assessment year relevant to the previous year in which the search is conducted or requisition is made. The assessee, on receipt of the notice from the Assessing Officer, shall furnish the returns of income and thereafter the Assessing Officer is empowered to assess ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t belonging to some other person, in whose case the search is not conducted, may be found. In such case, the Assessing Officer has to first be satisfied under Section 153C, which provides for the assessment of income of any other person, i.e., any other person who is not covered by the search, that the books of account or other valuable article or document belongs to the other person (person other than the one searched). He shall hand over the valuable article or books of account or document to the Assessing Officer having jurisdiction over the other person. Thereafter, the Assessing Officer having jurisdiction over the other person has to proceed against him and issue notice to that person in order to assess or reassess the income of such ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ced for ready reference as under:- The AO of the other person assumes jurisdiction under Section 153C with the receipt of the relevant seized material from the AO of the searched person. Also, a copy of the satisfaction received from the AO of the searched person in this regard would enable him to proceed further in the case of the other person under Section 153C. Though there is no statutory requirement for the AO of such other person to record any satisfaction/reason before issuing notice under Section 153C and proceeding further, considering the above aspects, it is advisable for maintaining institutional memory that the AO records receipt of the seized material and the satisfaction from the AO of the searched person and such ..... X X X X Extracts X X X X X X X X Extracts X X X X
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