Smt. Hardevi Keshwani, Agra V. A.C.I.T., Central Circle, Agra

ITA 340/AGR/2012

• Counselvise Citation: [2019] 117 COUNSELVISE.COM (IT) 0571 (ITAT-AGRA)
• Duration Of Justice: 6 year(s) 9 month(s) 27 day(s)
• Appeal Type: Cross Objection
• Pronouncement Date: 16-05-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Next Hearing Date: 23-05-2013
• Assessment Year: 2006-2007
• Appeal Filed On: 20-07-2012

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL, AGRA BENCH, AGRA BEFORE : SHRI BHAVNESH SAINI, JUDICIAL MEMBER AND SHRI A.L. GEHLOT, ACCOUNTANT MEMBER ITA NO. 369, 339, 340 & 341/AGRA/2012 ASSTT. YEAR : 2004-05, 2005-06, 2006-07 & 2007-08 HARDEVI KESHWANI, VS. A.C.I.T., CENTRAL CIRCLE, 92, SURYA NAGAR, AGRA. AGRA. (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI PANKAJ GARGH, ADVOCATE RESPONDENT BY : SHRI WASEEM ARSHAD, SR. D.R. DATE OF HEARING : 23.05.2013 DATE OF PRONOUNCEMENT OF ORDER : 31.05.2013 ORDER PER BHAVNESH SAINI, J.M.: ALL THE ABOVE APPEALS BY THE SAME ASSESSEE ARE DIR ECTED AGAINST THE DIFFERENT ORDERS OF LD. CIT(A)-I, AGRA DATED 05.03.2012 & 30. 01.2012 FOR THE ASSESSMENT YEARS 2004-05, 2005-06, 2006-07 AND 2007-08. 2. IN ALL THE APPEALS, THE ASSESSEE HAS CHALLENGED THE INITIATION OF PROCEEDINGS U/S. 153C OF THE IT ACT, AS NO PAPER, DOCUMENT OR A NY ADVERSE MATERIAL RELATING TO ASSESSMENT YEARS WERE FOUND DURING THE SEARCH. THE ASSESSEE ALSO ON MERITS CHALLENGED THE ORDERS OF THE LD. CIT(A) IN CONFIRMI NG THE ADDITIONS OF RS.77,433/- ITA NO. 369, 339, 340 & 341/AGRA/2012 2 ON ACCOUNT OF DETERMINATION OF ANNUAL LETTING VALUE U/S. 23(4) OF THE IT ACT OF THE PROPERTIES AT 7% OF INVESTMENTS. 3. BRIEFLY, THE FACTS OF THE CASE ARE THAT THE CASE S PERTAIN TO SHANKER GUTKA GROUP, IN WHICH SEARCH AND SEIZURE OPERATIONS WERE CONDUCTED U/S. 132(1) OF THE IT ACT ON 31.01.2008.THEREAFTER, THE PROCEEDINGS U/S. 153C READ WITH SECTION 153A WERE INITIATED AND AFTER CONSIDERING THE MATERIAL A VAILABLE ON RECORD AND SUBMISSIONS OF THE ASSESSEE, THE AO MADE ADDITIONS ON ACCOUNT OF INCOME FROM HOUSE PROPERTY ON DETERMINING THE ANNUAL LETTING VA LUE OF THE PROPERTY AT 7% OF THE INVESTMENTS AND MADE THE ADDITIONS OF RS.77,433 /-. IT MAY BE NOTED HERE THAT IN ASSESSMENT YEAR 2004-05, THE AO ALSO MADE ADDITION OF RS.5,00,000/- ON ACCOUNT OF UNEXPLAINED GIFT, WHICH HAS BEEN DELETED BY THE LD. CIT(A) VIDE ORDER DATED 05.03.2012. NOTHING IS BROUGHT TO OUR NOTICE IF DEP ARTMENT HAVE CHALLENGED THIS FINDING OF THE LD. CIT(A) IN ANY APPEAL. 4. THE ASSESSEE CHALLENGED INITIATION AND VALIDITY OF PROCEEDINGS U/S. 153C AND ADDITION ON MERITS BEFORE THE LD. CIT(A).THE WRITTE N SUBMISSION OF THE ASSESSEE IS INCORPORATED IN THE APPELLATE ORDER IN WHICH THE AS SESSEE BRIEFLY EXPLAINED THAT NO ACTION U/S. 132 OF THE IT ACT HAS BEEN TAKEN IN THE CASE OF ASSESSEE. THE ASSESSEES SOURCE OF INCOME IS MAINLY INCOME, WHICH IS ASSESSE D UNDER THE HEAD INCOME FROM ITA NO. 369, 339, 340 & 341/AGRA/2012 3 OTHER SOURCES. SEARCH WAS CONDUCTED AND PANCHNAMA WAS DRAWN IN THE NAME OF HER HUSBAND, FATHER-IN-LAW AND BROTHER OF HER HUSBA ND. NO ADVERSE OR INCRIMINATING MATERIAL WAS FOUND AS A RESULT OF SEARCH WHICH CAN BE MADE THE BASIS FOR AO TO HAVE SATISFIED THAT THE INCOME RELATING TO THE ASSE SSEE, HAS BEEN UNEARTHED DURING THE SEARCH. EVEN THE SATISFACTION RECORDED, IF ANY, WHICH IS A PRE-REQUISITE CONDITION FOR THE INITIATION OF PROCEEDINGS AND THE ISSUE OF NOTICE U/S. 153C OF THE IT ACT HAS NEITHER BEEN MENTIONED IN THE ASSESSMENT ORDER NOR HAS BEEN SUPPLIED TO THE ASSESSEE. IN THE ABSENCE OF THE SAME, IT CANNOT BE SAID THAT ANY UNDISCLOSED INCOME RELATING TO THE ASSESSEE HAS BEEN FOUND DURING THE COURSE OF SEARCH. THE ACTION U/S. 153C OF THE IT ACT IN THE CASE OF ANOTHER PERSON CA N ONLY BE TAKEN IF ANY INCRIMINATING MATERIAL REFLECTING UNDISCLOSED INCOM E IS FOUND DURING THE COURSE OF SEARCH. IN THE CASE OF ASSESSEE SINCE NO MATERIAL F OUND DURING THE COURSE OF SEARCH, AGAINST THE ASSESSEE, THEREFORE, NOTICE ISSUED U/S. 153C IS INVALID AND CONSEQUENT ASSESSMENT MADE U/S. 153C READ WITH SECTION 143(3) OF THE IT ACT DESERVES TO BE QUASHED. THE ASSESSEE RELIED UPON CERTAIN DECISIONS IN SUPPORT OF HER CONTENTION. THE LD. CIT(A), HOWEVER, REJECTED THE CONTENTION OF THE ASSESSEE AND DECIDED THE ISSUE AGAINST THE ASSESSEE. THE APPEAL OF THE ASSES SEE ON MERIT OF DETERMINATION OF ANNUAL LETTING VALUE WAS ALSO DISMISSED. ITA NO. 369, 339, 340 & 341/AGRA/2012 4 5. THE LD. COUNSEL FOR THE ASSESSEE REITERATED THE SUBMISSIONS MADE BEFORE THE AUTHORITIES BELOW AND SUBMITTED THAT NO SEARCH HAS BEEN CONDUCTED IN THE NAME OF THE ASSESSEE U/S. 132 OF THE IT ACT, THEREFORE, THE PROCEEDINGS U/S. 153C HAVE BEEN INITIATED AND THE ASSESSMENT ORDERS ARE ALSO PASSED U/S. 153C OF THE IT ACT. HE HAS SUBMITTED THAT SINCE NO MATERIAL IS FOUND AGAINST T HE ASSESSEE DURING THE COURSE OF SEARCH OF OTHER PERSONS AND NO SATISFACTION HAS BEE N RECORDED BEFORE INITIATING THE PROCEEDINGS U/S. 153C OF THE IT ACT, THEREFORE, INI TIATION OF PROCEEDINGS U/S. 153C IS ILLEGAL AND BAD IN LAW. VIDE ORDER DATED 30.11.2 012, THE LD. DR WAS DIRECTED TO FILE SATISFACTION NOTE OF THE AO. FURTHER TIME WAS EXTENDED FOR COMPLYING WITH THE ABOVE ORDER. HOWEVER, NO SATISFACTION NOTE U/S. 153 C HAS BEEN PRODUCED BEFORE US. DURING THE COURSE OF HEARING, THE LD. DR SUBMITTED THAT NO FORMAL SATISFACTION NOTE HAS BEEN RECORDED IN THIS CASE U/S. 153C OF THE IT ACT FOR INITIATING THE PROCEEDINGS AGAINST THE ASSESSEE U/S. 153C OF THE IT ACT. THE L D. DR, HOWEVER, RELIED UPON THE ORDERS OF THE AUTHORITIES BELOW. 6. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS AND THE MATERIAL AVAILABLE ON RECORD AND FIND THAT THE ISSUE IS SQUARELY COVERED IN FAVOUR OF THE ASSESSEE BY ORDER OF ITAT, AGRA BENCH IN THE CASE OF ACIT CIRCLE I, G WALIOR VS. M/S. GLOBAL ESTATE IN ITA NO. 144 TO 149/2011, ASSESSMENT YEARS 2003-0 4 TO 2008-09 DATED ITA NO. 369, 339, 340 & 341/AGRA/2012 5 30.11.2012, IN WHICH ON THE IDENTICAL ISSUE, DEPART MENTAL APPEAL HAS BEEN DISMISSED. THE FINDINGS IN PARA 9 TO 9.7 OF THIS OR DER ARE REPRODUCED AS UNDER : 9. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS AND THE MATERIAL AVAILABLE ON RECORD. SECTION 153A, 153B AN D 153C OF THE IT ACT PROVIDES :- ASSESSMENT IN CASE OF SEARCH OR REQUISITION. 153A . 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 REQUISIT IONED UNDER SECTION 132A AFTER THE 31ST DAY OF MAY, 2003, THE ASSESSING OFF ICER SHALL (A) ISSUE NOTICE TO SUCH PERSON REQUIRING HIM TO FU RNISH WITHIN SUCH PERIOD, AS MAY BE SPECIFIED IN THE NOTICE, THE RETURN OF INCOME IN RESPECT OF EACH ASSESSMENT YEAR FALLING W ITHIN SIX ASSESSMENT YEARS REFERRED TO IN CLAUSE (B), IN THE PRESCRIBED FORM AND VERIFIED IN THE PRESCRIBED MANNER AND SETT ING FORTH SUCH OTHER PARTICULARS AS MAY BE PRESCRIBED AND THE PROVISIONS OF THIS ACT SHALL, SO FAR AS MAY BE, APP LY ACCORDINGLY AS IF SUCH RETURN WERE A RETURN REQUIRE D TO BE FURNISHED UNDER SECTION 139 ; (B) ASSESS OR REASSESS THE TOTAL INCOME OF SIX ASSE SSMENT YEARS IMMEDIATELY PRECEDING THE ASSESSMENT YEAR RELEVANT TO THE PREVIOUS YEAR IN WHICH SUCH SEARCH IS CONDUCTED OR REQUISITION IS MADE : PROVIDED THAT THE ASSESSING OFFICER SHALL ASSESS OR REASSESS THE TOTAL INCOME IN RESPECT OF EACH ASSESSMENT YEAR FALLING W ITHIN SUCH SIX ASSESSMENT YEARS: PROVIDED FURTHER THAT ASSESSMENT OR REASSESSMENT, IF ANY, RELATING T O ANY ASSESSMENT YEAR FALLING WITHIN THE PERIOD OF SI X ASSESSMENT YEARS REFERRED TO IN THIS SECTION PENDING ON THE DATE OF INITIATION OF THE ITA NO. 369, 339, 340 & 341/AGRA/2012 6 SEARCH UNDER SECTION 132 OR MAKING OF REQUISITION UNDER SECTION 132A , AS THE CASE MAY BE, SHALL ABATE. EXPLANATION.FOR THE REMOVAL OF DOUBTS, IT IS HEREB Y DECLARED THAT, (I) SAVE AS OTHERWISE PROVIDED IN THIS SECTION, SECTION 153B AND SECTION 153C , ALL OTHER PROVISIONS OF THIS ACT SHALL APPLY TO T HE ASSESSMENT MADE UNDER THIS SECTION; (II) IN AN ASSESSMENT OR REASSESSMENT MADE IN RESP ECT OF AN ASSESSMENT YEAR UNDER THIS SECTION, THE TAX SHALL B E CHARGEABLE AT THE RATE OR RATES AS APPLICABLE TO SUCH ASSESSMENT YEAR . 153B . (1) NOTWITHSTANDING ANYTHING CONTAINED IN SECTION 153 , THE ASSESSING OFFICER SHALL MAKE AN ORDER OF ASSESSMENT OR REASSESSMENT, (A) IN RESPECT OF EACH ASSESSMENT YEAR FALLING WIT HIN SIX ASSESSMENT YEARS REFERRED TO IN CLAUSE (B) OF SECTION 153A , WITHIN A PERIOD OF TWO YEARS FROM THE END OF THE FINANCIAL YEAR IN WHICH T HE LAST OF THE AUTHORISATIONS FOR SEARCH UNDER SECTION 132 OR FOR REQUISITION UNDER SECTION 132A WAS EXECUTED; (B) IN RESPECT OF THE ASSESSMENT YEAR RELEVANT TO THE PREVIOUS YEAR IN WHICH SEARCH IS CONDUCTED UNDER SECTION 132 OR REQUISITION IS MADE UNDER SECTION 132A , WITHIN A PERIOD OF TWO YEARS FROM THE END OF THE FINANCIAL YEAR IN WHICH THE LAST OF THE AUTHORISATI ONS FOR SEARCH UNDER SECTION 132 OR FOR REQUISITION UNDER SECTION 132A WAS EXECUTED : [ PROVIDED THAT IN CASE OF OTHER PERSON REFERRED TO IN SECTION 153C , THE PERIOD OF LIMITATION FOR MAKING THE ASSESSMENT OR R EASSESSMENT SHALL BE THE PERIOD AS REFERRED TO IN CLAUSE (A) OR CLAUS E (B) OF THIS SUB- SECTION OR ONE YEAR FROM THE END OF THE FINANCIAL Y EAR IN WHICH BOOKS OF ACCOUNT OR DOCUMENTS OR ASSETS SEIZED OR REQUISI TIONED ARE HANDED OVER UNDER SECTION 153C TO THE ASSESSING OFFICER HAVING PROVIDED FURTHER THAT IN THE CASE WHERE THE LAST OF THE AUTHORISATI ONS FOR SEARCH UNDER SECTION 132 OR FOR REQUISITION UNDER SECTION 132A WAS EXECUTED DURING THE FINANCIAL YEAR COMMENCING ON THE 1ST DAY OF APRIL, 2004 OR ANY SUBSEQUENT FINANCIAL YEAR, (I) THE PROVISIONS OF CLAUSE (A) OR CLAUSE (B) OF THIS SUB-SECTION SHALL HAVE EFFECT AS IF FOR THE WORDS TWO YEARS T HE WORDS TWENTY- ONE MONTHS HAD BEEN SUBSTITUTED; ITA NO. 369, 339, 340 & 341/AGRA/2012 7 (II) THE PERIOD OF LIMITATION FOR MAKING THE ASSES SMENT OR RE- ASSESSMENT IN CASE OF OTHER PERSON REFERRED TO IN SECTION 153C , SHALL BE THE PERIOD OF TWENTY-ONE MONTHS FROM THE END OF THE FINANCIAL YEAR IN WHICH THE LAST OF THE AUTHORISATIONS FOR SEARCH UNDER SECTION 132 OR FOR REQUISITION UNDER SECTION 132A WAS EXECUTED OR NINE MONTHS FROM THE END OF THE FINANCIAL YEAR IN WHICH BOOKS OF ACC OUNT OR DOCUMENTS OR ASSETS SEIZED OR REQUISITIONED ARE HANDED OVER U NDER SECTION 153C TO THE ASSESSING OFFICER HAVING JURISDICTION OVER S UCH OTHER PERSON, WHICHEVER IS LATER :] [PROVIDED ALSO THAT IN CASE WHERE THE LAST OF THE AUTHORISATIONS F OR SEARCH UNDER SECTION 132 OR FOR REQUISITION UNDER SECTION 132A WAS EXECUTED DURING THE FINANCIAL YEAR COMMENCING ON TH E 1ST DAY OF APRIL, 2005 OR ANY SUBSEQUENT FINANCIAL YEAR AND DU RING THE COURSE OF THE PROCEEDINGS FOR THE ASSESSMENT OR REASSESSMENT OF TOTAL INCOME, A REFERENCE UNDER SUB-SECTION (1) OF SECTION 92CA (I) WAS MADE BEFORE THE 1ST DAY OF JUNE, 2007 BUT AN ORDER UNDER SUB-SECTION (3) OF SECTION 92CA HAS NOT BEEN MADE BEFORE SUCH DATE; OR (II) IS MADE ON OR AFTER THE 1ST DAY OF JUNE, 2007 , THE PROVISIONS OF CLAUSE (A) OR CLAUSE (B) OF THIS SUB-SECTION SHALL, NOTWITHSTANDING ANYTHING CONTAINED IN CLAUSE (I) OF THE SECOND PROVISO, HAVE EFFECT AS IF FOR THE WORDS TWO YEARS , THE WORDS THIRTY THREE MONTHS HAD BEEN SUBSTITUTED: PROVIDED ALSO THAT IN CASE WHERE THE LAST OF THE AUTHORISATIONS F OR SEARCH UNDER SECTION 132 OR FOR REQUISITION UNDER SECTION 132A WAS EXECUTED DURING THE FINANCIAL YEAR COMMENCING ON TH E 1ST DAY OF APRIL, 2005 OR ANY SUBSEQUENT FINANCIAL YEAR AND DU RING THE COURSE OF THE PROCEEDINGS FOR THE ASSESSMENT OR REASSESSMENT OF TOTAL INCOME IN CASE OF OTHER PERSON REFERRED TO IN SECTION 153C , A REFERENCE UNDER SUB-SECTION (1) OF SECTION 92CA (I) WAS MADE BEFORE THE 1ST DAY OF JUNE, 2007 BUT AN ORDER UNDER SUB-SECTION (3) OF SECTION 92CA HAS NOT BEEN MADE BEFORE SUCH DATE; OR (II) IS MADE ON OR AFTER THE 1ST DAY OF JUNE, 2007 , THE PERIOD OF LIMITATION FOR MAKING THE ASSESSMENT OR REASSESSMENT IN CASE OF SUCH OTHER PERSON SHALL, NOTWITHSTANDING AN YTHING CONTAINED IN CLAUSE (II) OF THE SECOND PROVISO, BE THE PERIOD OF THIRTY-THREE MONTHS FROM THE END OF THE FINANCIAL YEAR IN WHICH THE LAST OF THE ITA NO. 369, 339, 340 & 341/AGRA/2012 8 AUTHORISATIONS FOR SEARCH UNDER SECTION 132 OR FOR REQUISITION UNDER SECTION 132A WAS EXECUTED OR TWENTY-ONE MONTHS FROM THE END OF THE FINANCIAL YEAR IN WHICH BOOKS OF ACCOUNT OR DOCUMEN TS OR ASSETS SEIZED OR REQUISITIONED ARE HANDED OVER UNDER SECTION 153C TO THE ASSESSING OFFICER HAVING JURISDICTION OVER SUCH OTH ER PERSON, WHICHEVER IS LATER. ] EXPLANATION.IN COMPUTING THE PERIOD OF LIMITATION FOR THE PURPOSES OF THIS SECTION, (I) THE PERIOD DURING WHICH THE ASSESSMENT PROCEED ING IS STAYED BY AN ORDER OR INJUNCTION OF ANY COURT; OR (II) THE PERIOD COMMENCING FROM THE DAY ON WHICH T HE ASSESSING OFFICER DIRECTS THE ASSESSEE TO GET HIS ACCOUNTS AU DITED UNDER SUB- SECTION (2A) OF SECTION 142 AND ENDING ON THE DAY ON WHICH THE ASSESSEE IS REQUIRED TO FURNISH A REPORT OF SUCH AU DIT UNDER THAT SUB- SECTION; OR (III) THE TIME TAKEN IN REOPENING THE WHOLE OR ANY PART OF THE PROCEEDING OR IN GIVING AN OPPORTUNITY TO THE ASSES SEE OF BEING RE- HEARD UNDER THE PROVISO TO SECTION 129 ; OR (IV) IN A CASE WHERE AN APPLICATION MADE BEFORE TH E SETTLEMENT COMMISSION UNDER SECTION 245C IS REJECTED BY IT OR IS NOT ALLOWED TO BE PROCEEDED WITH BY IT, THE PERIOD COMMENCING FROM THE DATE ON WHICH SUCH APPLICATION IS MADE AND ENDING WITH THE DATE ON WHICH THE ORDER UNDER SUB-SECTION (1) OF SECTION 245D IS RECEIVED BY THE COMMISSIONER UNDER SUB-SECTION (2) OF THAT SECTION, 55 [OR] [(V) THE PERIOD COMMENCING FROM THE DATE ON WHICH AN APPLICATION IS MADE BEFORE THE AUTHORITY FOR ADVANCE RULINGS UN DER SUB-SECTION (1) OF SECTION 245Q AND ENDING WITH THE DATE ON WHICH THE ORDER REJECTING THE APPLICATION IS RECEIVED BY THE COMMIS SIONER UNDER SUB- SECTION (3) OF SECTION 245R , OR (VI) THE PERIOD COMMENCING FROM THE DATE ON WHICH AN APPLICATION IS MADE BEFORE THE AUTHORITY FOR ADVANCE RULINGS UN DER SUB-SECTION (1) OF SECTION 245Q AND ENDING WITH THE DATE ON WHICH THE ADVANCE RULING PRONOUNCED BY IT IS RECEIVED BY THE COMMISSI ONER UNDER SUB- SECTION (7) OF SECTION 245R ,] SHALL BE EXCLUDED : PROVIDED THAT WHERE IMMEDIATELY AFTER THE EXCLUSION OF THE AFORESAID PERIOD, THE PERIOD OF LIMITATION REFERRED TO IN CLA USE (A) OR CLAUSE (B) OF THIS SECTION * AVAILABLE TO THE ASSESSING OFFICER FOR MAKING AN O RDER ITA NO. 369, 339, 340 & 341/AGRA/2012 9 OF ASSESSMENT OR REASSESSMENT, AS THE CASE MAY BE, IS LESS THAN SIXTY DAYS, SUCH REMAINING PERIOD SHALL BE EXTENDED TO SI XTY DAYS AND THE AFORESAID PERIOD OF LIMITATION SHALL BE DEEMED TO B E EXTENDED ACCORDINGLY. (2) THE AUTHORISATION REFERRED TO IN CLAUSE (A) AND CLAUSE (B) OF SUB- SECTION (1) SHALL BE DEEMED TO HAVE BEEN EXECUTED, (A) IN THE CASE OF SEARCH, ON THE CONCLUSION OF SE ARCH AS RECORDED IN THE LAST PANCHNAMA DRAWN IN RELATION TO ANY PERS ON IN WHOSE CASE THE WARRANT OF AUTHORISATION HAS BEEN ISSUED; (B) IN THE CASE OF REQUISITION UNDER SECTION 132A , ON THE ACTUAL RECEIPT OF THE BOOKS OF ACCOUNT OR OTHER DOCUMENTS OR ASSETS BY THE AUTHORISED OFFICER. 153C . (1)] 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, BULL ION, JEWELLERY OR OTHER VALUABLE ARTICLE OR THING OR BOOKS OF ACCOUNT OR DOCUMENTS SEIZED OR REQUISITIONED BELONGS OR BELONG TO A PERS ON OTHER THAN THE PERSON REFERRED TO IN SECTION 153A , THEN THE BOOKS OF ACCOUNT OR DOCUMENTS OR ASSETS SEIZED OR REQUISITIONED SHALL B E HANDED OVER TO THE ASSESSING OFFICER HAVING JURISDICTION OVER SUCH OTHER PERSON AND THAT ASSESSING OFFICER SHALL PROCEED AGAINST EACH S UCH OTHER PERSON AND ISSUE SUCH OTHER PERSON NOTICE AND ASSESS OR RE ASSESS INCOME OF SUCH OTHER PERSON IN ACCORDANCE WITH THE PROVISIONS OF SECTION 153A :] [ PROVIDED THAT IN CASE OF SUCH OTHER PERSON, THE REFERENCE T O THE DATE OF INITIATION OF THE SEARCH UNDER SECTION 132 OR MAKING OF REQUISITION UNDER SECTION 132A IN THE SECOND PROVISO TO SECTION 153A SHALL BE CONSTRUED AS REFERENCE TO THE DATE OF RECEIVING THE BOOKS OF ACCOUNT OR DOCUMENTS OR ASSETS SEIZED OR REQUISITIONED BY THE ASSESSING OFFICER HAVING JURISDICTION OVER SUCH OTHER PERSON. (2) WHERE BOOKS OF ACCOUNT OR DOCUMENTS OR ASSETS S EIZED OR REQUISITIONED AS REFERRED TO IN SUB-SECTION (1) HAS OR HAVE BEEN RECEIVED BY THE ASSESSING OFFICER HAVING JURISDICTI ON OVER SUCH OTHER PERSON AFTER THE DUE DATE FOR FURNISHING THE RETURN OF INCOME FOR THE ASSESSMENT YEAR RELEVANT TO THE PREVIOUS YEAR IN WH ICH SEARCH IS ITA NO. 369, 339, 340 & 341/AGRA/2012 10 CONDUCTED UNDER SECTION 132 OR REQUISITION IS MADE UNDER SECTION 132A AND IN RESPECT OF SUCH ASSESSMENT YEAR (A) NO RETURN OF INCOME HAS BEEN FURNISHED BY S UCH OTHER PERSON AND NO NOTICE UNDER SUB-SECTION (1) OF SECTION 142 HAS BEEN ISSUED TO HIM, OR (B) A RETURN OF INCOME HAS BEEN FURNISHED BY SU CH OTHER PERSON BUT NO NOTICE UNDER SUB-SECTION (2) OF SECTION 143 HAS BEEN SERVED AND LIMITATION OF SERVING THE NOTIC E UNDER SUB- SECTION (2) OF SECTION 143 HAS EXPIRED, OR (C) ASSESSMENT OR REASSESSMENT, IF ANY, HAS BE EN MADE, BEFORE THE DATE OF RECEIVING THE BOOKS OF ACCOUNT O R DOCUMENTS OR ASSETS SEIZED OR REQUISITIONED BY THE ASSESSING OFFICER HAVING JURISDICTION OVER SUCH OTHER PERSON, SUCH AS SESSING OFFICER SHALL ISSUE THE NOTICE AND ASSESS OR REASSE SS TOTAL INCOME OF SUCH OTHER PERSON OF SUCH ASSESSMENT YEAR IN THE MANNER PROVIDED IN SECTION 153A .] 9.1 HONBLE SUPREME COURT IN THE CASE OF MANISH MAH ESHWARI VS. ACIT AND OTHERS, 289 ITR 341 CONSIDERING THE EARLIE R PROVISIONS OF SECTION 158BD OF THE IT ACT (ANALOGOUS TO SEC.153C OF IT ACT) HELD THAT - THE CONDITION PRECEDENT FOR INVOKING A BLOCK ASSES SMENT IS THAT A SEARCH HAS BEEN CONDUCTED UNDER SECTION 132, OR DOC UMENTS OR ASSETS HAVE BEEN REQUISITIONED UNDER SECTION 132A. THE SAI D PROVISION WOULD APPLY IN THE CASE OF ANY PERSON IN RESPECT OF WHOM SEARCH HAS BEEN CARRIED OUT UNDER SECTION 132A OR DOCUMENTS OR ASSE TS HAVE BEEN REQUISITIONED UNDER SECTION 132A. SECTION 158BD, H OWEVER, PROVIDES FOR TAKING RECOURSE TO A BLOCK ASSESSMENT IN TERMS OF SECTION 158BC IN RESPECT OF ANY OTHER PERSON, THE CONDITIONS PRECEDE NT WHEREFOR ARE : (I) SATISFACTION MUST BE RECORDED BY THE ASSESSING OFFICER THAT ANY UNDISCLOSED INCOME BELONGS TO ANY PERSON, OTHER THA N THE PERSON WITH RESPECT TO WHOM SEARCH WAS MADE UNDER SECTION 132 O F THE ACT; (II) THE BOOKS OF ACCOUNT OR OTHER DOCUMENTS OR ASSETS S EIZED 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 PE RSON. ITA NO. 369, 339, 340 & 341/AGRA/2012 11 THE CONDITIONS PRECEDENT FOR INVOKING THE PROVISION S OF SECTION 158BD, THUS, ARE REQUIRED TO BE SATISFIED BEFORE TH E PROVISIONS OF THE SAID CHAPTER ARE APPLIED IN RELATION TO ANY PERSON OTHER THAN THE PERSON WHOSE PREMISES HAD BEEN SEARCHED OR WHOSE DO CUMENTS AND OTHER ASSETS HAD BEEN REQUISITIONED UNDER SECTION 1 32A OF THE ACT. IT WAS FURTHER HELD LAW IN THIS REGARD IS CLEAR AND EXPLICIT. THE ONL Y QUESTION WHICH ARISES FOR OUR CONSIDERATION IS AS TO WHETHER THE NOTICE DATED FEBRUARY 6, 1996, SATISFIES THE REQUIREMENTS OF SEC TION 158BD OF THE ACT. THE SAID NOTICE DOES NOT RECORD ANY SATISFACTI ON ON THE PART OF THE ASSESSING OFFICER. DOCUMENTS AND OTHER ASSETS RECOV ERED DURING SEARCH HAD NOT BEEN HANDED OVER TO THE ASSESSING OF FICER HAVING JURISDICTION IN THE MATTER. IT WAS ALSO HELD THAT AS THE ASSESSING OFFICER HAS NOT RECORDED HIS SAT ISFACTION, WHICH IS MANDATORY; NOR HAS HE TRANSFERRED THE CASE TO THE ASSESSING OFFICER HAVING JURISDICTION OVER THE MATTER, WE ARE OF THE OPINION THAT THE IMPUGNED JUDGMENTS OF THE HIGH COURT CANNOT BE SUSTAINED, WHICH ARE SET ASIDE ACCORDINGLY. THE APPEALS ARE ALLOWED . HOWEVER, IN THE FACTS AND CIRCUMSTANCES OF THE CASE, THERE SHALL BE NO ORDER AS TO COSTS. 9.2 HONBLE MADRAS HIGH COURT IN THE CASE OF CIT V. G.K. SENNIAPPAN; 284 ITR 220 HELD THE ASSESSEE WAS ENGAGED IN THE BUSINESS OF CHIT FUND AND REAL ESTATE. IN A SEARCH CONDUCTED AGAINST A THIRD PERSO N IT WAS FOUND THAT THE ASSESSEE HAD UTILIZED UNDISCLOSED INCOME FOR MA KING CONTRIBUTIONS TO CERTAIN UNREGISTERED CHITS CONDUCTED BY THE SAID PERSON. THEREAFTER, A SURVEY WAS CONDUCTED IN THE BUSINESS PREMISES OF THE ASSESSEE WHICH INDICATED CERTAIN REAL ESTATE TRANSACTIONS CARRIED ON BY THE ASSESSEE AND PROFITS DERIVED THEREON HAD NOT BEEN DISCLOSED TO THE DEPARTMENT. THE ASSESSING OFFICER INCLUDED UNDER SECTION 158BB THE UNDISCLOSED INCOME FOUND DURING THE SURVEY MADE UNDER SECTION 1 33A. THE COMMISSIONER (APPEALS) EXCLUDED THAT PORTION WHICH HAD BEEN INCLUDED BASED ON THE MATERIAL FOUND DURING THE SUR VEY ON THE PREMISES THAT IN RESPECT OF BLOCK ASSESSMENT UNDER SECTION 158BB MATERIAL COLLECTED DURING THE SURVEY UNDER SECTION 133A COULD NOT BE ITA NO. 369, 339, 340 & 341/AGRA/2012 12 TAKEN INTO CONSIDERATION. THIS WAS CONFIRMED BY TH E TRIBUNAL. ON APPEAL CONTENDING THAT THE MATERIAL GATHERED IN THE COURSE OF SURVEY UNDER SECTION 133A COULD ALSO BE REGARDED AS A MATE RIAL FOR THE PURPOSE OF BLOCK ASSESSMENT UNDER SECTION 158BB: HELD ACCORDINGLY, DISMISSING THE APPEAL, THAT THE C OMMISSIONER (APPEALS) AND THE TRIBUNAL HAVING DECIDED THE ISSUE IN ACCORDANCE WITH THE STATUTORY PROVISIONS, IT REQUIRED NO INTER FERENCE. 9.3. SEC. 153A OF THE IT ACT STARTS WITH THE WORD NOTWITHSTANDING ANYTHING CONTAINED, IT IS NON-OBSTANTE CLAUSE. FOR APPLICABILITY OF ABOVE PROVISION, THE INITIATION OF SEARCH IS NECESS ARY. ONCE A WARRANT OF AUTHORIZATION OR REQUISITION IS ISSUED AND SEARC H IS CONDUCTED AND PANCHNAMA IS DRAWN, THE ASSESSMENTS FOR THE ALL THE RELEVANT YEARS WOULD GET REOPENED IRRESPECTIVE OF WHETHER ANY INCR IMINATING MATERIAL IS FOUND OR NOT IN RELATION TO A PARTICULAR AY. IN OTHER WORDS, EVEN IF THE MATERIAL FOUND SHOWS THE CONCEALMENT IN ONLY ON E YEAR, ALL THE COMPLETED ASSESSMENTS FALLING IN THE PERIOD OF SIX AYS PRECEDING THE YEAR OF SEARCH WILL GET REOPEN. THERE WAS AN IDENTI CAL PROVISION CONTAINED IN CHAPTER XIV-B OF THE ACT, WHICH PROVID ES THAT WHERE AFTER 30 TH JUNE, 1995, A SEARCH IS INITIATED U/S 132 OR BOOKS ACCOUNTS ETC. ARE REQUISITIONED U/S 132A, THE AO SHALL PROCE ED TO ASSESS UNDISCLOSED INCOME IN ACCORDANCE WITH PROVISIONS OF CHAPTER XIV-B FOR MAKING ASSESSMENT FOR BLOCK PERIOD BUT IN THE B LOCK ASSESSMENTS, THE QUESTION OF ASSESSING AN UNDISCLOSED INCOME IN RELATION TO ANY AY WAS RESTRICTED TO THE INCRIMINATING MATERIAL ON UND ISCLOSED ASSETS DISCOVERED DURING THE COURSE OF SEARCH AND SEIZURE OR IN THE POST SEARCH INQUIRY THE MATERIAL WAS RELATABLE TO SUCH E VIDENCE DISCOVERED IN SEARCH. THE INCOME ASSESSED IN THE REGULAR ASSES SMENTS WAS NOT TO BE CONSIDERED IN THE BLOCK ASSESSMENTS. HOWEVER, IN THE PRESENT PROVISIONS U/S 153A, THERE IS NO SUCH PROVISION PRO VIDED IN THE ACT. ONCE WARRANT OF AUTHORIZATION IS ISSUED AND THE SEA RCH IS CONDUCTED AND PANCHNAMA IS DRAWN, THE ASSESSMENTS FOR ALL THE SEVEN YEARS INCLUDING THE CURRENT YEAR HAVE TO BE COMPLETED U/S 153A, 153B AND 153C. EVEN THE ASSESSMENTS WHICH ARE COMPLETED BEFO RE THE DATE OF SEARCH SHALL GET REOPENED AND THOSE ASSESSMENTS WHE RE THE PROCEEDINGS ARE PENDING AT THE TIME OF SEARCH SHALL ABATE. THE AO, THEREFORE, SHALL ASSESS OR REASSESS SUCH INCOME FOR ALL THESE YEARS. ITA NO. 369, 339, 340 & 341/AGRA/2012 13 9.4 SEC. 153C OF THE IT ACT HOWEVER PROVIDES FOR TA KING RECOURSE TO A ASSESSMENT OF INCOME OF ANY OTHER PERSON OTHER THAN THE PERSON SEARCHED AND THE CONDITIONS PRECEDENT FOR INVOKING SUCH PROVISIONS AGAINST SUCH OTHER PERSON ARE: 1. THE SEARCH OR REQUISITION MUST HAVE TAKEN PLACE IN CASE OF ANY PERSON. 2. WHERE THE AO IS SATISFIED THAT ANY MONEY, BULLION, JWELLERY OR OTHER VALUABLE ARTICLES OR OTHER THINGS OR BOOKS OF ACCOUNTS OR DOCUMENTS SEIZED OR REQUISITIONS BELONGS OR BELONG TO A PERSON OTHER THAN THE PERSON REFERRED TO IN SEC. 153A. 3. THE BOOKS ACCOUNTS OR DOCUMENTS OR ASSETS SEIZED OR REQUISITIONED SHALL BE HANDED OVER TO THE AO HAVING JURISDICTION OVER SUCH OTHER PERSON. 4. THE AO HAS PROCEEDED U/S 153C AGAINST SUCH OTHER PE RSON. 9.5 AS IS NOTED ABOVE, THERE ARE CERTAIN DISTINGUIS HED FEATURES IN EARLIER PROVISIONS OF LAW IN CHAPTER XIV-B CONTAINE D U/S SEC. 158BA, 158BB AND 158BC AS COMPARED TO SEC. 153A BUT THE PR OVISIONS CONTAINED U/S 158BD ARE MORE OR LESS SIMILAR TO PRO VISIONS CONTAINED IN SEC. 153C OF THE IT ACT EXCEPT UNDISCLOSED INCO ME WHICH IS MENTIONED IN SEC. 158BD, HOWEVER, IN SEC. 153C, IT IS MENTIONED ANY MONEY, BULLION, JWELLERY OR OTHER VALUABLE ARTICLES OR THINGS OR BOOKS ACCOUNTS OR DOCUMENTS SEIZED OR REQUISITIONS. THE C ONDITIONS PRECEDENT FOR INVOKING PROVISIONS U/S 158BD AS IS H ELD BY HONBLE SUPREME COURT IN THE CASE OF MANISH MAHESHWARI (SUP RA) ARE THEREFORE SAME AS ARE PROVIDED U/S 153C OF THE IT A CT. IT IS ADMITTED FACT THAT NO SEARCH WARRANT WAS EXECUTED IN THE CAS E OF THE PRESENT ASSESSEE U/S 132(1) OF THE IT ACT, THEREFORE, PROVI SIONS OF SEC. 153A WERE NOT APPLICABLE. THE AO HAS, THEREFORE, PROCEED ED AGAINST THE ASSESSEE U/S 153C OF THE IT ACT. THIS VIEW IS FURTH ER STRENGTHENED BY THE JUDGMENT OF HONBLE GUJRAT HIGH COURT IN THE CA SE OF VIJAYBHAI N. CHANDRANI VS. ACIT, 333 ITR 436 IN WHICH IT WAS HELD AS UNDER : SECTION 153A, 153B AND 153C OF THE INCOME-TAX ACT, 1961, LAY DOWN A SCHEME FOR ASSESSMENT IN CASE OF SEARCH AND REQUI SITION. SECTION 153C WHICH IS SIMILARLY WORDED TO SECTION 158BD OF THE ACT, PROVIDES THAT WHERE THE ASSESSING OFFICER IS SATISFIED THAT ANY MONEY, BULLION, JEWELLERY OR OTHER VALUABLE ARTICLE OR THING OR BOO KS OF ACCOUNT OR DOCUMENTS SEIZED OR REQUISITIONED BELONGS OR BELONG TO A PERSON OTHER ITA NO. 369, 339, 340 & 341/AGRA/2012 14 THAN THE PERSON REFERRED TO IN SECTION 153A HE SHAL L PROCEED AGAINST EACH SUCH OTHER PERSON AND ISSUE SUCH OTHER PERSON NOTICE AND ASSESS OR REASSESS INCOME OF SUCH OTHER PERSON. HOWEVER, T HERE IS A DISTINCTION BETWEEN THE TWO PROVISIONS INASMUCH AS UNDER SECTION 153C NOTICE CAN BE ISSUED ONLY WHERE THE MONEY, BUL LION, JEWELLERY OR OTHER VALUATION ARTICLE OR THING OR BOOKS OF ACCOUN T OR DOCUMENTS SEIZED OR REQUISITIONED BELONG TO SUCH OTHER PERSON , WHEREAS UNDER SECTION 158BD IF THE ASSESSING OFFICER WAS SATISFIE D THAT ANY UNDISCLOSED INCOME BELONGS TO ANY PERSON, OTHER THA N THE PERSON WITH RESPECT TO WHOM SEARCH WAS MADE UNDER SECTION 132 O R WHOSE BOOKS OF ACCOUNT OR OTHER DOCUMENTS OR ASSETS WERE REQUIS ITIONED UNDER SECTION 132A, HE COULD PROCEED AGAINST SUCH OTHER P ERSON UNDER SECTION 158BC. THUS A CONDITION PRECEDENT FOR ISSUI NG NOTICE UNDER SECTION 153C AND ASSESSING OR REASSESSING INCOME OF SUCH OTHER PERSON, IS THAT THE MONEY, BULLION, JEWELLERY OR OT HER VALUABLE ARTICLES OR THING OR BOOKS OF ACCOUNT OR DOCUMENTS SEIZED OR REQUISITIONED SHOULD BELONG TO SUCH PERSON. IF THE REQUIREMENT IS NOT SATISFIED, RECOURSE CANNOT BE HAD TO THE PROVISIONS OF SECTION 153C. HELD, ALLOWING THE PETITION, THAT ADMITTEDLY, THE THREE LOOSE PAPERS RECOVERED DURING THE SEARCH PROCEEDINGS DID NOT BELONG TO THE PETITIONER. IT WAS NOT THE CASE OF THE REVENUE THAT THE THREE DOCUMENTS WERE IN THE HANDWRITING OF THE PETITIONER. IN THE C IRCUMSTANCES, WHEN THE CONDITION PRECEDENT FOR ISSUANCE OF NOTICE WAS NOT FULFILLED ACTION TAKEN UNDER SECTION 153C OF THE ACT STOOD VITIATED. 9.6 CONSIDERING THE FACTS RECORDED ABOVE IN THE LIG HT OF THE ABOVE PROVISIONS AND DECISIONS, WE FIND THAT ASSESSEE HAD A CASE FOR QUASHING OF PROCEEDINGS U/S 153C OF THE IT ACT. NO MATERIAL IS PRODUCED BEFORE US TO PROVE THAT THE AO IN THE CASE OF PERSON SEARCHED WAS SATISFIED THAT ANY MONEY, BULLION, JWE LLERY OR OTHER VALUABLE ARTICLES OR THINGS OR BOOKS ACCOUNTS OR DO CUMENTS SEIZED OR REQUISITIONED BELONGS TO OR BELONG TO A PERSON OTHE R THAN THE PERSON REFERRED TO IN SEC. 153A. NO MATERIAL IS PRODUCED B EFORE US TO SHOW IF ANY SATISFACTION WAS RECORDED BY THE AO IN THAT CAS E THAT THE SEIZED MATERIAL BELONGS TO ANY PERSON OTHER THAN THE PERSO N WITH RESPECT TO WHOM SEARCH WAS MADE U/S 132 OF THE ACT. LD. DR DID NOT PRODUCE ANY MATERIAL BEFORE US TO SHOW IF ANY SUCH SATISFAC TION AS REQUIRED U/S 153C WAS RECORDED BY THE AO IN THE CASE OF PERSON S EARCHED. NO MATERIAL IS PRODUCED IN REFERENCE TO ABOVE REQUIREM ENT. NO MATERIAL IS ITA NO. 369, 339, 340 & 341/AGRA/2012 15 ALSO PRODUCED BEFORE US TO SHOW THAT BOOKS ACCOUNTS OR DOCUMENTS OR ASSETS SEIZED HAD BEEN HANDED OVER TO THE AO HAVING JURISDICTION OVER SUCH OTHER PERSON. IN THE ABSENCE OF ANY ADEQUATE M ATERIAL PRODUCED BY LD. DR, WE FIND THE CONTENTION OF LD. COUNSEL FO R ASSESSEE WAS JUSTIFIED THAT IN THIS CASE, THE AO HAS NOT RECORDE D ANY SATISFACTION THAT ANY SEIZED DOCUMENT OR MATERIAL BELONGS TO ANY PERS ON OTHER THAN THE PERSON SEARCHED. SINCE THE REVENUE IS IN APPEAL, TH EREFORE, BURDEN WAS UPON THEM TO PROVE THAT NECESSARY INGREDIENTS OF SE C. 153C HAVE BEEN COMPLIED WITH IN THIS CASE BEFORE INVOKING JURISDIC TION U/S 153C OF THE IT ACT. WE MAY ALSO ADD HERE THAT THE AO HAS NOT RE FERRED TO ANY SEIZED DOCUMENT OR MATERIAL IN THE ASSESSMENT ORDER S ON THE BASIS OF WHICH, ADDITIONS ON MERIT HAVE BEEN MADE. THEREFORE , THE CONDITIONS OF SEC. 153C AS NOTED ABOVE ARE ALSO NOT SATISFIED IN THIS CASE. WE, THEREFORE, DO NOT FIND ANY INFIRMITY IN THE ORDER O F THE LD. CIT(A) IN QUASHING THE PROCEEDINGS U/S 153C OF THE IT ACT. 9.7 CONSIDERING THE ABOVE DISCUSSION, IT IS CLEAR T HAT THE LD. CIT(A) ON PERUSAL OF THE RECORD FOUND THAT THE AO HAS NOWH ERE RECORDED ANY SATISFACTION AS REQUIRED U/S. 153C OF THE IT ACT. D UE TO THE SAME REASON, THE SAME WAS NOT COMMUNICATED TO THE ASSESS EE. THE ISSUE IS, THEREFORE, SQUARELY COVERED BY THE JUDGMENTS NOTED ABOVE AND THEREFORE, THE DECISION IN THE CASE OF DIGVIJAY CHE MICALS (SUPRA) CANNOT BE GIVEN PREFERENCE. WE, THEREFORE, DO NOT F IND ANY INFIRMITY IN THE ORDER OF THE LD. CIT(A) IN QUASHING THE ASSESSM ENT ORDER U/S. 153C OF THE IT ACT. IN THE RESULT, GROUND NO. 1 OF DEPAR TMENTAL APPEAL FAILS AND IS DISMISSED. SINCE WE HAVE CONFIRMED THE QUASH ING OF PROCEEDINGS U/S. 153C OF THE IT ACT, THEREFORE, ALL ADDITIONS MADE IN THE ASSESSMENT ORDER WOULD STAND DELETED. HOWEVER, WE FIND THAT SIMILAR ISSUES ARE COMING UP IN THE SUBSEQUENT ASSE SSMENT YEARS, THEREFORE, WE FIND IT APPROPRIATE TO DISCUSS THE IS SUES ON MERITS BRIEFLY IN THIS ORDER IN ONE OF THE APPEALS ONLY. 6.1 CONSIDERING THE FACTS OF THE CASE, IT IS CLEAR THAT NO SEARCH WAS CONDUCTED AGAINST THE ASSESSEE U/S. 132 OF THE IT ACT, THEREF ORE, PROCEEDINGS U/S. 153C HAVE BEEN INITIATED. THE AO DID NOT MAKE ANY ADDITION AG AINST THE ASSESSEE ON THE BASIS OF ANY ADVERSE MATERIAL. THE AO PASSED THE ASSESSME NT ORDER U/S. 153C OF THE IT ITA NO. 369, 339, 340 & 341/AGRA/2012 16 ACT MAKING ADDITION OF RS.77,433/- ON ACCOUNT OF DE TERMINATION OF ANNUAL LETTING VALUE U/S. 23(4) OF THE IT ACT OF THE PROPERTY AT 7 % OF INVESTMENTS. THE DETERMINATION OF ANNUAL LETTING VALUE IS ONLY ON NO TIONAL BASIS AND FOR THAT, NO INCRIMINATING MATERIAL WAS FOUND AGAINST THE ASSESS EE. NO MATERIAL IS PRODUCED BEFORE US TO PROVE THAT THE AO IN THE CASE OF PERSO N SEARCHED WAS SATISFIED THAT ANY MONEY, BULLION, JEWELLERY OR OTHER VALUABLE ARTICLE S OR THINGS OR BOOKS OF ACCOUNT OR DOCUMENTS SEIZED OR REQUISITION BELONGS TO OR B ELONGING TO A PERSON OTHER THAN THE PERSON REFERRED TO IN SECTION 153A. NO MATERIAL IS PRODUCED BEFORE US TO SHOW IF ANY SATISFACTION WAS RECORDED BY THE AO IN THAT CASE THAT THE SEIZED MATERIAL BELONGS TO ANY PERSON OTHER THAN THE PERSON WITH RE SPECT TO WHOM SEARCH WAS MADE U/S. 132 OF THE IT ACT. THE LD. DR WAS DIRECTED TO FILE COPY OF THE SATISFACTION NOTE RECORDED BY THE AO FOR INITIATING THE PROCEEDINGS U /S. 153C OF THE IT ACT. HOWEVER, THE LD. DR DID NOT PRODUCE ANY SATISFACTIO N NOTE U/S. 153C OR ANY MATERIAL BEFORE US TO SHOW IF ANY SUCH SATISFACTION AS REQUIRED U/S. 153C WAS RECORDED BY THE AO IN THE CASE OF PERSON SEARCHED. NO MATERIAL IS PRODUCED IN REFERENCE TO THE ABOVE REQUIREMENT. NO MATERIAL IS ALSO PRODUCED BEFORE US TO SHOW THAT THE BOOKS OF ACCOUNT OR DOCUMENTS OR ASSETS SE IZED HAD BEEN HANDED OVER TO THE AO HAVING JURISDICTION OVER SUCH OTHER PERSON. IN THE ABSENCE OF ANY MATERIAL PRODUCED BEFORE US, WE FIND THE CONTENTION OF THE L D. COUNSEL FOR THE ASSESSEE WAS JUSTIFIED THAT IN THIS CASE THE AO HAS NOT RECORDED ANY SATISFACTION THAT ANY SEIZED ITA NO. 369, 339, 340 & 341/AGRA/2012 17 DOCUMENTS OR MATERIAL BELONGS TO ANY PERSON OTHER T HAN THE PERSON SEARCHED. THEREFORE, NECESSARY INGREDIENTS OF SECTION 153C HA VE NOT BEEN COMPLIED WITH IN THIS CASE BEFORE INVOKING THE JURISDICTION U/S. 153 C OF THE IT ACT. WE MAY ALSO ADD HERE THAT THE AO HAS NOT REFERRED TO ANY SEIZED DOCUMENTS OR MATERIAL IN THE ASSESSMENT ORDERS ON THE BASIS OF WHICH NOTIONAL AN NUAL LETTING VALUE WAS DETERMINED. THEREFORE, CONDITIONS OF SECTION 153C A S NOTED ABOVE ARE NOT SATISFIED IN THIS CASE. CONSIDERING THE ABOVE DISCUSSION IN T HE LIGHT OF OUR ORDER IN THE CASE OF M/S. GLOBAL ESTATES (SUPRA), WE DO NOT FIND ANY JUSTIFICATION TO SUSTAIN THE PROCEEDINGS U/S. 153C INITIATED BY THE AUTHORITIES BELOW AGAINST THE ASSESSEE. WE, ACCORDINGLY, SET SIDE THE ORDERS OF THE AUTHORITIES BELOW AND QUASH THE PROCEEDINGS U/S. 153C OF THE IT ACT. THEREFORE, ALL THE ADDITIO NS MADE IN THE ASSESSMENT ORDERS U/S. 153C WOULD STAND DELETED. 7. IN THE RESULT, ALL THE APPEALS OF THE ASSESSEE A RE ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT. SD/- SD/- (A.L. GEHLOT) (BHAVNESH SAINI) ACCOUNTANT MEMBER JUDICIAL MEMBER *AKS/- COPY OF THE ORDER FORWARDED TO : 1. APPELLANT 2. RESPONDENT 3. CIT(A), CONCERNED BY ORDER 4. CIT, CONCERNED 5. DR, ITAT, AGRA SR. PRIVATE SECRETARY 6. GUARD FILE TRUE COPY