TMI Blog2022 (7) TMI 638X X X X Extracts X X X X X X X X Extracts X X X X ..... f the Act. Keeping in view the aforesaid, this Court is of the opinion that the question of law raised in present appeal has been settled by earlier Division Bench in Kabul Chawla ( 2015 (9) TMI 80 - DELHI HIGH COURT] and no incriminating documents or materials had been found and seized at the time of search. Accordingly, no question of law arises for consideration in the present appeal and the same is dismissed. - ITA 193/2022 - - - Dated:- 12-7-2022 - HON BLE MR. JUSTICE MANMOHAN AND HON BLE MS. JUSTICE MANMEET PRITAM SINGH ARORA Appellant Through: Mr.Ajit Sharma, senior standing counsel. Respondent Through: None J U D G M E N T MANMOHAN, J (Oral): C.M.No.30174/2022 Keeping in view the averments in the application, the delay in filing the present appeal is condoned. Accordingly, the application stands disposed of. ITA No.193/2022 1. Present Income Tax Appeal has been filed challenging the Order dated 14th October, 2019 passed by the Income Tax Appellate Tribunal ( ITAT ) in ITA No. 6817/Del./2013 for the Assessment Year 2008-09. 2. Learned Counsel for the Appellant states that the ITAT has erred in confirming the order pa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... essment orders for each of the six years. In other words there will be only one assessment order in respect of each of the six AYs in which both the disclosed and the undisclosed income would be brought to tax . iv. Although Section 153 A does not say that additions should be strictly made on the basis of evidence found in the course of the search, or other post-search material or information available with the AO which can be related to the evidence found, it does not mean that the assessment can be arbitrary or made without any relevance or nexus with the seized material. Obviously an assessment has to be made under this Section only on the basis of seized material. v. In absence of any incriminating material, the completed assessment can be reiterated and the abated assessment or reassessment can be made. The word assess in Section 153 A is relatable to abated proceedings (i.e. those pending on the date of search) and the word reassess to completed assessment proceedings. vi. Insofar as pending assessments are concerned, the jurisdiction to make the original assessment and the assessment under Section 153A merges into one. Only one assessment shall be made ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... reflect undisclosed income of an Assessee before commencing an enquiry under Section 153C of the Act, it would be impermissible for him to commence such enquiry if it is apparent that the documents/assets in question have no bearing on the income of the Assessee for the relevant assessment years. 37. As expressly indicated under Section 153C of the Act the assessment or reassessment of income of a person other than a searched person would proceed in accordance with the provisions of Section 153A of the Act. The concluded assessments cannot be interfered with under Section 153A of the Act unless the incriminating material belonging to the Assessee has been seized. 38. As indicated above, in the present case, the documents seized had no relevance or bearing on the income of the Assessee for the relevant assessment years and could not possibly reflect any undisclosed income. This being the undisputed position, no investigation was necessary. Thus, the provisions of section 153C, which are to enable an investigation in respect of the seized asset, could not be resorted to; the AO had no jurisdiction to make the reassessment under Section 153C of the Act. (ii) PC ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ble. The word satisfied occurs in many a statute and has its connotation. The term is satisfied means simply makes up its mind [per Lord Pearson in Blyth v. Bivth (1966) 1 ALL E.R. 524 (541)]. Dixon J. has defined it as actual persuasion . It fundamentally means a mind not troubled by doubt or to adopt the language of Smith J. a mind which has reached a clear conclusion (see Angland v. Payne (1944) N.Z.L.R. 610 (626). The Assessing Officer is satisfied when he makes his mind or reaches a clear conclusion when he takes a prima facie view that the material available establishes undisclosed income of a third party. Assessing Officer must reach a clear conclusion that good ground exists for the Assessing Officer of the third person to initiate proceedings as material before him shows or would establish undisclosed income of a third person. At this stage, as the proceedings are at the very initial state, the satisfaction neither is required to be firm or conclusive. The satisfaction required is to decide whether or not block assessment proceedings are required to be initiated. But satisfaction has to be founded on reasonableness. It cannot be capricious sa ..... X X X X Extracts X X X X X X X X Extracts X X X X
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