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TMI Blog2013 (7) TMI 805X X X X Extracts X X X X X X X X Extracts X X X X ..... on 132B of the Act stating that the entire consignment was duly accounted for and recorded in his account books. He produced all the account books and final accounts for the period 2006-07, 2007-08 along with the stock register of 2008-09. The petitioner's statement was recorded on August 18, 2008. On November 30, 2009, the petitioner's assessing authority, namely, the Income-tax Officer, Unit-II (2), Bareilly, passed an order under section 132B, to release the entire quantity in favour of the petitioner, after examining his account books and all other relevant materials, and after recording findings that the silver bullion in question was part of the stock-in-trade, and was duly disclosed by the petitioner. The order has not been challenged and has attained finality. The entire seized silver bullion has been released to the petitioner. On December 31, 2010, the assessment was completed under section 153B(1)(b) read with section 143(3) of the Act in the case of M/s. Harish Kumar Laxman Kumar, the courier, for the assessment year 2009-10 by Income-tax Officer Ward-III(2), Ahmedabad. He recorded all the facts and circumstances, and held that the silver bullion belongs to the petitio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the source of investment in purchasing of silver and the assessment should be completed under section 153C read with section 153A. Rest of the facts stated are paragraph denied." Before considering the submissions of learned counsel for the parties, it will be appropriate to quote the orders of the assessing authority of the petitioner dated November 30, 2009 ; the relevant portion of the order of the assessment of M/s. Harish Kumar Laxman Kumar for the assessment 2009-10 and the short satisfaction note as follows : The assessment order of the petitioner under section 132B of the Act dated November 30, 2009 "Government of India Department of Revenue Office of the Income tax Officer-2(2) Bareilly Name and address of the assessee Shri Sarvesh Kumar Agarwal Prop : Sarvesh Jewellers, Sahukara, Bareilly Order under section 132B of the Income-tax Act, 1961 Dated : 30-11-2009 The assessee has moved an application under section 132B of the Income-tax Act, 1961, on July 30, 2008, before the undersigned stating that the silver bullion weighing 69.900 kgs was sent through the courier, viz., M/s Harish Kumar Laxmi Kumar 225, Kuncha Ghasi Ram, Chandinichowk, Delhi, for sendi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ly." The relevant extract of the assessment order of M/s. Harish Kumar Laxman Kumar, the courier of the assessment year 2009-10 by Income-tax Officer, Ward-III (2), Ahmedabad, dated December 31, 2010. "10. Considering the above facts, I am satisfied that the silver seized to the extent of 70.961 Kgs. from the employee of the assesseefirm belongs to M/s. Sarvesh Jewellers, Prop. Shri Sarvesh Kumar Agarwal, Shahukara, Bareilly, who is assessed to tax with PAN No. AETPA3062K Income-tax Officer, Ward 2(2), Bareilly. Since the above referred seized silver bullion belongs to M/s. Sarvesh Jewellers of Bareilly. So the information along with the satisfaction note, appraisal report and the seized documents/assets is being forwarded to the Income-tax Officer, Ward, 2(2), Bareilly, for necessary action under section 153C of the Income-tax Act. In view of the above, no additions has been made on account of the seized silver bullion in the case of the assessee. Subject to the above discussion the income of the assessee is assessed at returned income of Rs. nil. Assessed under section 153B(b) read with section 143(3) of the Income-tax Act, 1961. Give credit for prepaid taxes after due verifi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... less search and seizure operation under section 132 or section 132A, result into discovery of any undisclosed income, or any such material, which may justify assessments of last six years. The power conferred under section 153A read with section 153C for necessary assessments or reassessment for six years cannot be exercised mechanically without any material of undisclosed income. The notice has been given without any purpose. The exercise is mechanical, only to serve the statute. Shri S. D. Singh submits that in the present case the petitioner's Assessing Officer after going through the relevant books of account, including stock register, ledger and cash book found that the silver bullion is duly recorded in the register and necessary verifications were made. The petitioner's statement was also recorded, which was carefully studied, and revealed nothing adverse. The petitioner is being assessed regularly for a number of years. On the satisfaction recorded by the petitioner's Assessing Officer the entire bullion was released in his favour and thus in the circumstances the second assessment on the satisfaction note for proceeding under section 153C without disclosing any adverse ma ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of Andhra Pradesh [2006] 12 SCC 607 and Ispat Industries Ltd. v. Commissioner of Customs [2006] 12 SCC 583 ; [2006] 7 RC 546 in holding that where law is clear and explicit, the only question that arises is whether the notice satisfies the requirement of the law. The notice should record satisfaction under section 158BD on the part of the Assessing Officer, on which he gets jurisdiction over the matter, to transfer the case to the Assessing Officer. The Act has been amended introducing the provisions of section 153A, 153B, 153C and 153D. The requirement of law is the same as have been spelled out in Manish Maheshwari's case [2007] 289 ITR 341 (SC). In the present case, all the requirements of section 153C having been complied with. After making assessment of the person in whose hands the goods were found, the satisfaction note was recorded and sent to the Assessing Officer of the petitioner. In Manish Maheshwari's case [2007] 289 ITR 341 (SC) the Supreme Court observed that taxing statute must be construed strictly. The court, however, shall not interpret the statutory provisions in such a manner, which would create an additional physical burden on a person. In case of any doub ..... X X X X Extracts X X X X X X X X Extracts X X X X
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