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TMI Blog2010 (3) TMI 770X X X X Extracts X X X X X X X X Extracts X X X X ..... along with other members, however, it is nobody's case that the said documents belong to the petitioner - It is not even the case of the Revenue that the said three documents are in the handwriting of the petitioner. In the circumstances, when the condition precedent for issuance of notice is not fulfilled any action taken under section 153C of the Act stands vitiated. - Decided in the favour of the assessee - 13787 of 2009 - - - Dated:- 30-3-2010 - MEHTA D. A., DEVANI H. N. MS., JJ. JUDGMENT Ms. H. N. Devani J.- Considering the controversy involved in the present petition, by consent of the learned advocates for the parties, the matter is taken up for final hearing today. Hence, rule. Learned advocate for the respondent i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... has moved the present petition challenging the aforesaid notices. 5. Mrs. Swati Soparkar, learned advocate for the petitioner has invited attention to the provisions of section 153C of the Act to submit that notice under the said provision can be issued only when the Assessing Officer is satisfied that any money, bullion, jewellery or other valuable article or thing or books of account or documents seized or requisitioned belongs or belong to a person other than the person in whose case a search has been initiated under section 132. It is submitted that it is an admitted position that the three loose papers found at the time of the search do not belong to the petitioner ; that the impugned notice itself states that the proceedings have b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... section 65 of the Finance Act, 2003 three new sections viz. 153A, 153B and 153C came to be inserted after section 153 of the Income-tax Act, with effect from the 1st day of June, 2003. The said three sections fall under the heading "Assessment in case of search or requisition". 9. Section 153A which provides for assessment in case of search or requisition reads thus : "(1) Notwithstanding anything contained in section 139, section 147, section 148, section 149, section 151 and section 153, in the case of a person where a search is initiated under section 132 or books of account, other documents or any assets are requisitioned under section 132A after the 31st day of May, 2003, the Assessing Officer shall (a) issue notice to such p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e tax shall be chargeable at the rate or rates as applicable to such assessment year." 10. Section 153B provides for Time-limit for completion of assessment under section 153A. 11. The controversy in issue pertains to the interpretation of the provisions of section 153C of the Act which reads thus : "153C. Assessment of income of any other person.-Notwithstanding anything contained in section 139, section 147, section 148, section 149, section 151 and section 153, where the Assessing Officer is satisfied that any money, bullion, jewellery or other valuable article or thing or books of account or documents seized or requisitioned belongs or belong to a person other than the person referred to in section 153A, then the books of ac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or other valuable article or thing or books of account or documents seized or requisitioned belong to such other person, whereas under section 158BD if 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 assets were requisitioned under section 132A, he shall proceed against such other person under section 158BC. 13. Thus a condition precedent for issuing notice under section 153C and assessing or reassessing income of such other person, is that the money, bullion, jewellery or other valuable article or thing or books of account or documents seized or requisitioned should belong t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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