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TMI Blog2020 (3) TMI 361X X X X Extracts X X X X X X X X Extracts X X X X ..... ed out on 8/9.04.2010 at the residential/business premises of Shri Tejwant Singh and Shri Ved Prakash Bharti group of companies at Karnal, Panipat and Delhi. A survey under Section 133A of the Act was also carried out at the business premises of M/s Super Mall (P) Limited - the assessee, at Karnal and New Delhi. That during the course of the search on 8/9.04.2010 at the residence of Shri Ved Prakash Bharti, a Director in the assessee company - M/s Super Mall (P) Limited, pen drive was found and seized from the vehicle parked in front of Shri Ved Prakash Bharti's residence. That some documents were seized after taking out the print from the above said pen drive. The said documents contained the details of the cash receipts on sale of shops/offices at M/s Super Mall, Karnal, also besides other concerns. That as a consequence of the aforesaid search and seizure operation, a notice was issued to the assessee - M/s Super Mall (P) Limited (hereinafter referred to as the 'Assessee') under Section 153C of the Act by the Assessing Officer. At this stage, it is required to be noted that co-incidentally it so happened that the Assessing Officer of the assessee and the Assessing Officer of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by the Assessing Officer of the searched party. That as per the scheme of Section 153C of the Act, the Assessing Officer of searched person, i.e., the Directors in this case has to be firstly "satisfied" that any money, jewellery or other valuable articles, books of accounts or documents seized or requisitioned "belong to", i.e., in this case, the assessee company, a person other than the person referred to under Section 153A of the Act. It is submitted that thereafter and on being satisfied that the books of accounts or documents or assets so seized or requisitioned shall be handed over by the Assessing Officer of searched person, i.e., the Directors in this case to the Assessing Officer having jurisdiction over such other person i.e., the assessee company. That the aforesaid requirements before issuing notice under Section 153C of the Act are held to be mandatory by this Court in catena of decisions. Reliance is placed upon the decision of this Court in the case of Commissioner of Income Tax v. Calcutta Knitwears (2014) 6 SCC 444; decision of the Delhi High Court in the case of Pepsi Food Pvt. Ltd. v. Assistant Commissioner of Income Tax 2014 (367) ITR 112 (Delhi); decision of th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e assessee. Therefore, there was a sufficient compliance of the requirements under Section 153C of the Act. 4.2 That even as observed and held by the Delhi High Court in the case of Ganpati Fincap (supra), in case the Assessing Officer of the searched person and the other person is the same, there need not be two separate satisfaction notes recorded by the Assessing Officer of the searched person, where he is also the Assessing Officer of the other person. 4.3 Making the above submissions and relying upon the aforesaid decision, it is prayed to dismiss the present appeals. 5. We have heard the learned counsel for the respective parties at length. 5.1 As observed hereinabove, the short question which is posed for the consideration of this Court is, whether there is a compliance of the provisions of Section 153C of the Act by the Assessing Officer and all the conditions which are required to be fulfilled before initiating the proceedings under Section 153C of the Act have been satisfied or not? 6. This Court had an occasion to consider the scheme of Section 153C of the Act and the conditions precedent to be fulfilled/complied with before issuing notice under Section 153C of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n. At the same time, the satisfaction note by the Assessing Officer of the searched person that the documents etc. so seized during the search and seizure from the searched person belonged to the other person and transmitting such material to the Assessing Officer of the other person is mandatory. However, in the case where the Assessing Officer of the searched person and the other person is the same, it is sufficient by the Assessing Officer to note in the satisfaction note that the documents seized from the searched person belonged to the other person. Once the note says so, then the requirement of Section 153C of the Act is fulfilled. In case, where the Assessing Officer of the searched person and the other person is the same, there can be one satisfaction note prepared by the Assessing Officer, as he himself is the Assessing Officer of the searched person and also the Assessing Officer of the other person. However, as observed hereinabove, he must be conscious and satisfied that the documents seized/recovered from the searched person belonged to the other person. In such a situation, the satisfaction note would be qua the other person. The second requirement of transmitting the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ied that the document seized from the residence of Sh. Ved Parkash Bharti belongs to a person i.e. Super Mall (P) Ltd., other than the person referred in section 153A. Accordingly, it is directed to issue such person (M/s Super Mall (P) Ltd.) notice and assess and reassess income in accordance with the provision of section 153A of the Act. Dated: 22.02.2013 sd/- (VED PARKASH KALIA)" From the aforesaid satisfaction note, it emerges that the Assessing Officer is satisfied that the documents containing the details of the cash receipts on sale of shop/offices at M/s Super Mall, Karnal belonged to the other person - assessee - M/s Super Mall. He is also satisfied that the documents/pen drive are seized from the searched person. He is also satisfied that the documents so seized from the residence of the searched person/Ved Prakash Bharti belonged to the assessee - the other person. Therefore, the Assessing Officer was satisfied and it is specifically mentioned that the documents so seized belonged to the assessee - the other person. Therefore, it cannot be said that the mandatory requirements of Section 153C of the Act, in the facts and circumstances of the case, have not been co ..... X X X X Extracts X X X X X X X X Extracts X X X X
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