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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 ..... n case of Assistant Commissioner of Income-tax v. A.R. Enterprises reported in (2013 (1) TMI 345 - SUPREME COURT ) to quash the notice issued against the assessee and the assessment order passed pursuant thereto. As the order of the First Appellate Authority is not in consonance with the law laid down by the Hon’ble Supreme Court (supra), we set aside the same and quash the assessment order. - IT(SS)A. No: 632/AHD/2011 - - - Dated:- 13-4-2016 - SHRI N.K. BILLAIYA, ACCOUNTANT MEMBER AND SHRI KUL BHARAT, JUDICIAL MEMBER For The Appellant: Shri J.P. Shah, A.R. For The Respondent: Shri Narendra Singh, Sr. D.R. PER N.K. BILLAIYA, ACCOUNTANT MEMBER: 1. With this appeal, the assessee has challenged the validity of the order of the Ld. CIT(A)-II, Ahmedabad dated 19.10.2011 pertaining to A.Y. 2007-08. 2. With the first ground of appeal, the assessee has challenged the correctness of the assessment made u/s. 153A r.w.s. 153C 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 cas ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 in terms of Section 153A in respect of any other person, the condition precedent where for is that satisfaction must be recorded by the Assessing Officer that any money, bullion, jewellery or other valuable article or thing, seized or requisitioned, belongs to; or any books of account or documents seized or requisitioned, pertains or pertain to, or any information contained therein, relates to, a person other than the person referred to Section 153A, then, the books of account or documents or assets, seized or requisitioned shall be handed over to the Assessing Officer having jurisdiction over such other person. 12. Thus, it can be seen that the condition precedent is that the A.O must record his satisfaction. 13. In respect of an analogous provision of Section 158BD, the Hon ble Supreme Court in the case ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nst such other person as per the provisions of Chapter XIV-B which would mean that on such satisfaction being reached that any undisclosed income belongs to such other person, he must proceed to serve a notice to such other person as per the provisions of sec. 158BC of the Act. If the Assessing Officer who is seized of the matter against the raided person reaches such satisfaction that any undisclosed income belongs to such other person over whom he has no jurisdiction, then, in that event, he has to transmit the material to the Assessing Officer 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 provisi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uired to hand over the books of account or other documents or assets seized, to the Assessing Officer having jurisdiction over such person and thereafter, the Assessing Officer who has the jurisdiction would proceed under Section 158BC against such person who has not been searched. 15. In the instant case, as could be seen from the record, search had been carried out in case of Garden Group of Surat. On examination of the relevant documentary evidence, we find that the A.O has issued notice u/s. 153C of the Act which contains a reference to the satisfaction. However, it can be seen that the satisfaction recorded by the A.O is in the case of this very assessee. The relevant notice read as under:- Notice u/s. 153C of the Income Tax Act, 1961 Office of the Asst. Commissioner of Income-tax, Central Circle-1, Room No. 505, Aayakar Bhavan, Majuragate, Surat. No: ACIT-CC-1/SRT/153C/08-09 Date: 29.12.2008 To, Amika Indian Textiles and Art Museum Pvt. Ltd. Garden Mill Complex, Sahara Gate, Surat-395010. Sir/Madam, A Search u/s. 132 of the I.T. Act was conducted in the case of Garden Group of Surat on 12.06.2008. Whereas I a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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