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TMI Blog2016 (5) TMI 962X X X X Extracts X X X X X X X X Extracts X X X X ..... of the Act. It is the claim of the assessee that the ld. CIT(A) erred in upholding the validity of the proceedings initiated by the A.O. u/s. 153A r.w.s. 153C and the consequential assessment order. 3. Before going into the merits of the case let us first examine the correctness of this ground of appeal qua the assessment order made u/s. 143(3) r.w.s. 153C of the Act. 4. A search action u/s. 132 of the Act was carried out at the business as well as residential premises of the Garden Group of cases on 12.06.2008. 5. Pursuant to the search proceedings, a notice u/s. 153C of the Act was issued and served upon the assessee asking it to furnish its return of income for the year under consideration. 6. Reasons given for initiating the procee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uld not bring any distinguishing decision in favour of the revenue. 10. We have given a thoughtful consideration to the orders of the authorities below. We have also gone through the decision of the Hon'ble Jurisdictional High Court (supra). The undenying fact is that a search operation was conducted at the business and residential premises of Garden Group of Surat. It is also an undisputed fact that certain incriminating material was found which may belong to the assessee. 11. It is a settled proposition of law that the condition precedent for invoking a block assessment is that a search has been conducted u/s. 132, or documents or assets have been requisitioned u/s. 132A. However, Section 153C provides for taking recourse to assessment ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ny undisclosed income belongs to any person, other than the person with respect to whom search was made under Section 132 of the Act; (ii) The books of account or other documents or assets seized or requisitioned had been handed over to the Assessing Officer having jurisdiction over such other person; and (iii) The Assessing Officer has proceeded under Section 158BC against such other person. 12. The conditions precedent for invoking the provisions of Section 158BD, thus, are required to be satisfied before the provisions of the said chapter are applied in relation to any person other than the person whose premises had been searched or whose documents and other assets had been requisitioned under Section 132A of the Act. Xxx 16. Law in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er having jurisdiction over such other person and in such cases the Assessing Officer who has jurisdiction will proceed against such other person by issuing the requisite notice contemplated by sec. 158BC of the Act. The Apex Court in case of Assistant Commissioner of Income-tax v. A.R. Enterprises reported in (2013) 350 ITR 489 (SC) has held thus: 14. A bare reading of the afore-extracted provision makes it clear that the condition precedent for invoking a block assessment is a search conducted under section 132, or documents or assets requisitioned under section 132A. Moreover, section 158BD permits the application of the provisions of this Chapter only on the satisfaction of the Assessing Officer that the seized documents show undisc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... gs under Chapter XIV-B. Further, according to section 158BD of the Act, the Assessing Officer must record his or her satisfaction that any undisclosed income belongs to any person, other than the person with respect to whom search was made under section 132 of the Act. 10. Thus the law laid down on the subject is very clear that for taking recourse to block assessment under section 158BC in relation to the person not searched, whenever search has been conducted under section 132 or the documents have been requisitioned under section 132A, the Assessing Officer of the searched person needs to record his satisfaction that undisclosed income belongs to the person, other than the person with respect to whom search was carried out under Sectio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 09 is required to be assessed/reassessed in accordance with the provisions of section 153 of the Act. You are, therefore, required to furnish return of your income u/s. 153C of the I.T. Act 1961 for A.Y. 2007-08, being one out of the above six assessment years in respect of which you are assessable under the Income-Tax Act, 1961. The return should be filed in the appropriate form as prescribed in Rule 12 of the Income-Tax Rules, 1962. It should be duly verified and signed in accordance with the provisions of section 140 of the said Act and delivered at my office as mentioned above within Fifteen Days from the service of this notice. Yours faithfully, (B.D. Garsar) Asst. Commissioner of Income -Tax Central Circle-1, Surat. 16. On p ..... X X X X Extracts X X X X X X X X Extracts X X X X
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