Sh. Bhuwan Bhaskar Khemka, Sirsa V. ACIT, Chandigarh

ITA 977/CHANDI/2014

• Counselvise Citation: [2015] 140 COUNSELVISE.COM (IT) 95660 (ITAT-CHANDIGARH)
• Duration Of Justice: 11 month(s) 25 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 05-11-2015
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Next Hearing Date: 19-03-2015
• Assessment Year: 2004-2005
• Appeal Filed On: 10-11-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SUSHIL VERMAN
• Assessee Lawyers: SHARMA
• Keywords: Income from undisclosed sources; Search and seizure; Loose papers; Period of limitation; Additional evidence; Advance ruling; Block assessment; Documents seized
• Section: 147; 148; 132; 12; 11; 15; 139; 143(3); 133A; 153A

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DIVISION BENCH,CHANDIGARH BEFORE SHRI BHAVNESH SAINI, JUDICIAL MEMBER AND MS.ANNAPURNA MEHROTRA, ACCOUNTANT MEMBER ITA NOS. 977 TO 980/CHD/2014 A.YS. : 2004-05 TO 2007-08 SHRI BHUWAN BHASKAR KHEMKA, VS THE ACIT, PARKHAN WALI GALI, CENTRAL CIRCLE 1, BHADRA BAZAR, CHANDIGARH. SIRSA. PAN: ACZPK4683Q (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI M.R.SHARMA RESPONDENT BY : SHRI SUSHIL VERMAN,CIT-DR DATE OF HEARING : 29.10.2015 DATE OF PRONOUNCEMENT : 05.11.2015 O R D E R PER BHAVNESH SAINI,JM ALL THE APPEALS BY ASSESSEE ARE DIRECTED AGAINST DIFFERENT ORDERS OF LD. CIT(APPEALS) CENTRAL, GURGA ON DATED 10.09.2014 FOR ABOVE ASSESSMENT YEARS. 2. BRIEFLY THE FACTS OF THE CASE ARE THAT SEARCH & SEIZURE OPERATION UNDER SECTION 132(1) OF THE INCOME TAX AC T WAS CONDUCTED ON M/S OM COMMODITY GROUP OF CASES ON 25.03.2008 BY INVESTIGATION WING OF INCOME TAX DEPARTMENT CHANDIGARH AND FOLLOWING PREMISES WERE COVERED UNDER SECTION 132(1) OF THE INCOME TAX ACT : A) M/S OM COMMODITY BROKERS, FLAT NO. 2,1 ST FLOOR, SIRSA 2 CLUB COMPLEX, SIRSA. B) SHRI PANKAJ KEHMKA, PARKHAN WALI GALI, BHADRA BAZAR , SIRSA. C) SHRI RAJ KUMAR JALLAN, #E140, NEW ANAJ MANDI, SIRSA D) SHRI RAJ KUMAR JALLAN, LO CKER NO. 55, CENTRAL BANK OF PUNJAB, SIRSA 3. IN THE COURSE OF SEARCH OPERATION AT THE RESIDEN CE OF SHRI PANKAJ KHEMKA, STATEMENT OF THE ASSESSEE AND T HE FATHER OF SHRI PANKAJ KHEMKA WAS RECORDED ON 25.03. 2008. IN HIS STATEMENT, THE ASSESSEE SURRENDERED RS. 10 L ACS AS HIS UNACCOUNTED INCOME I.E. RS. 1,82,800/- ON ACCOU NT OF RE-PAYMENT OF INSTALMENTS MADE IN CASH, RS. 2,31,00 0/- ON ACCOUNT OF STOCK OF SUGAR, RS. 2 LACS RECEIVED AS C ASH AGAINST SALE OF SYRUP AND RS. 3,86,200/- ON ACCOUNT OF DISCREPANCIES FOUND IN LOOSE PAPERS. THE ASSESSEE IS STATED TO BE RESIDING WITH HIS SON SHRI PANKAJ KHEM KA AND AS HE HAS ADMITTED RS. 10 LACS AS HIS UNDISCLOSED I NCOME, THEREFORE, THE CASE WAS LINKED WITH GROUP CASES OF M/S OM COMMODITY BROKERS, SIRSA. THE ASSESSING OFFICER IS SUED NOTICE UNDER SECTION 153C OF THE ACT AND ASSESSEE SUBMITTED THAT THE RETURN ALREADY FILED MAY BE TREA TED AS RETURN OF INCOME FILED UNDER SECTION 153C OF THE AC T. THE ASSESSING OFFICER COMPLETED THE ASSESSMENTS BEING A LL THE ORDERS UNDER SECTION 153C READ WITH SECTION 143(3) OF THE ACT DATED 30.12.2009. THE ASSESSING OFFICER MADE TH E ADDITIONS OF RS. 51,000/- FOR ASSESSMENT YEAR 2004- 05, RS. 40,000/- IN ASSESSMENT YEAR 2005-06 ON ACCOUNT OF C ASH DEPOSIT IN THE BANK ACCOUNT NOT EXPLAINED, RS. 50,0 00/- WAS ADDED IN ASSESSMENT YEAR 2006-07 AGAIN AS 3 UNACCOUNTED CASH DEPOSITED IN THE BANK ACCOUNT AND RS. 1,03,600/- AS UNEXPLAINED LOAN. IN ASSESSMENT YEAR 2007- 08, THE ASSESSING OFFICER MADE ADDITION OF RS. 69,6 10/- ON ACCOUNT OF UNEXPLAINED REPAYMENT OF THE LOAN. 4. THE ASSESSEE CHALLENGED THE ADDITIONS BEFORE LD. CIT(APPEALS) AS WELL AS THE VALIDITY OF THE NOTICE UNDER SECTION 153C OF THE INCOME TAX ACT. HOWEVER, BOTH THE ISSUES WERE TURNED DOWN AND APPEALS OF THE ASSESSEE ON THIS ISSUE HAVE BEEN DISMISSED. 5. THE ASSESSEE HAS FILED APPLICATION UNDER RULE 29 OF APPELLATE TRIBUNAL RULES FOR ADMISSION OF THE ADDIT IONAL EVIDENCE. IT IS STATED IN THE APPLICATION THAT ASSE SSEE HAD OBJECTED TO THE ISSUE OF NOTICE UNDER SECTION 153C AND RECORDING OF SATISFACTION BEFORE ISSUE OF NOTICE BY THE ASSESSING OFFICER WHICH IS EVIDENT FROM THE RECORD. THE ASSESSEE FILED APPLICATION BEFORE ASSESSING OFFICER SEEKING THEREIN COPIES OF THE SATISFACTION RECORDED FOR ISS UE OF THE NOTICE UNDER SECTION 153A AND 153C OF THE ACT. THE ASSESSING OFFICER (DCIT, CENTRAL CIRCLE-I, CHANDIGA RH) VIDE LETTER DATED 18.02.2015 IN RESPONSE TO THE RTI APPL ICATION FILED BY ASSESSEE REPLIED AS UNDER : IN THIS CONNECTION, IT IS INTIMATED THAT THE INFO RMATION SOUGHT BY YOU IS NOT FOUND IN THE RECORD OF THIS OF FICE, THUS THE INFORMATION CANNOT BE SUPPLIED TO YOU. ACCORDINGLY YOUR RTI APPLICATION DATED 21.01.2015 I S HEREBY DISPOSED OFF. 4 6. THE LD. COUNSEL FOR THE ASSESSEE SUBMITTED THAT SINCE THE ASSESSEE UNDER RTI ASKED FROM THE ASSESSING OFF ICER THE COPIES OF SATISFACTION RECORDED BY THE ASSESSIN G OFFICER BEFORE ISSUING NOTICE UNDER SECTION 153C OF THE INC OME TAX ACT AND AS PER RTI REPLY, NO SUCH SATISFACTION IS A VAILABLE ON RECORD, THEREFORE, PROCEEDINGS UNDER SECTION 153 C ARE BAD IN LAW AND ARE LIABLE TO BE QUASHED. THE LD. C OUNSEL FOR THE ASSESSEE, THEREFORE, SUBMITTED THAT THIS RT I INFORMATION IS VITAL AND RELEVANT FOR THE PURPOSE O F DISPOSAL OF THE APPEALS, THEREFORE, REPLY OF THE AS SESSING OFFICER MAY BE ADMITTED AS ADDITIONAL EVIDENCE. 7. ON CONSIDERATION OF THE RIVAL SUBMISSIONS, WE AR E OF THE VIEW THAT ADDITIONAL EVIDENCE, SINCE GOES TO TH E ROOT OF THE MATTER AND IS VITAL FOR JUST DECISION OF THE MA TTER ON THE ISSUE OF SATISFACTION RECORDED UNDER SECTION 15 3C OF THE INCOME TAX ACT, THEREFORE, WE ADMIT THE SAME AS ADDITIONAL EVIDENCE FOR THE PURPOSE OF DISPOSAL OF THE APPEALS. 8. THE LD. COUNSEL FOR THE ASSESSEE SUBMITTED THAT THE LD. CIT(APPEALS) IN ALL THE YEARS WITH REGARD TO SA TISFACTION RECORDED UNDER SECTION 153C OF THE INCOME TAX ACT H AS FOLLOWED HIS ORDER FOR ASSESSMENT YEAR 2008-09, COP Y OF WHICH IS FILED IN THE PAPER BOOK. THE LD. CIT(APPE ALS) RECORDED THAT THE ASSESSING OFFICER, WHO HAS FRAMED ASSESSMENT OF A GROUP IS ONE AND SAME AND SO IT CAN NOT BE SAID THAT HE HAS NOT ADHERED TO THE REQUIREMENTS OF LAW WHILE EXERCISING HIS ROLE IN DUAL CAPACITY. THE LD . 5 CIT(APPEALS), THEREFORE, UPHOLD THE PROCEEDINGS UND ER SECTION 153C OF THE INCOME TAX ACT. THE LD. COUNSE L FOR THE ASSESSEE, THEREFORE, SUBMITTED THAT SINCE RTI R EPLY GIVEN BY THE ASSESSING OFFICER IS AGAINST THE FINDI NGS OF THE LD. CIT(APPEALS), THEREFORE, PROCEEDINGS UNDER SECT ION 153C HAVE NOT BEEN VALIDLY INITIATED. HE HAS SUBMITTED THAT ASSESSING OFFICER HAS INITIALLY ISSUED NOTICE UNDER SECTION 153A OF THE INCOME TAX ACT ON 20.10.2009 (PB-20) WH ICH IS REPLIED BY ASSESSING OFFICER ON 30.11.2009 (PB-21) IN WHICH THE ASSESSEE EXPLAINED THAT SEARCH WAS ILLEGA L AND NO SEARCH WAS CONDUCTED IN THE CASE OF ASSESSEE. H E HAS, THEREFORE, SUBMITTED THAT ASSESSING OFFICER THEREAF TER ISSUED NOTICE UNDER SECTION 153C ON 30.11.2009 (PB- 22) AND AS SUCH, NO SATISFACTION AS REQUIRED UNDER SECT ION 153C EVEN RECORDED BY THE ASSESSING OFFICER BEFORE INITIATING PROCEEDINGS. HE HAS SUBMITTED THAT ASS ESSEE IS RESIDING SEPARATELY FROM HIS SON. HE HAS ALSO SUBM ITTED THAT NEITHER ANY VALUABLE NOR ANY INCRIMINATING DOC UMENTS OR BOOKS OF ACCOUNT WERE FOUND IN THE PREMISES OCCU PIED BY SHRI PANKAJ KHEMKA BEING THE PERSON SEARCHED, THEREFORE, PROCEEDINGS UNDER SECTION 153C OF THE AC T ARE ILLEGAL. 9. ON THE OTHER HAND, LD. DR RELIED UPON ORDERS OF THE AUTHORITIES BELOW AND SUBMITTED THAT THERE IS NO NE ED TO RECORD SATISFACTION UNDER SECTION 153C OF THE ACT I N ANY PARTICULAR MANNER. THEREFORE, PROCEEDINGS HAVE BEEN VALIDLY INITIATED. HE HAS RELIED UPON DECISION OF THE KERALA HIGH COURT IN THE CASE OF CIT VS PANCHAJANYAM 6 MANAGEMENT AGENCIES & SERVICES 333 ITR 281, ORDER O F ITAT BANGALORE BENCH IN THE CASE OF SUBHAN JAVEED V ACIT 122 ITD 307 AND ORDER OF ITAT AMRITSAR BENCH IN THE CASE OF ACIT VS VINOD GOEL 111 ITD 70. 10. WE HAVE CONSIDERED RIVAL SUBMISSIONS AND PERUSE D THE MATERIAL AVAILABLE ON RECORD. THE ITAT AGRA BE NCH IN THE CASE OF ACIT, CIRCLE-I GWALIOR VS GLOBAL ESTATE 142 ITD 740 CONSIDERING THE IDENTICAL QUESTION IN THE LIGHT OF VARIOUS DECISIONS IN PARA 9 TO 9.7 OF THE ORDER HEL D AS UNDER : 9. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS AND THE MATERIAL AVAILABLE ON RECORD. SECTION 153A, 153B AND 153C OF THE IT ACT P ROVIDES :- 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 INITIAT ED 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 PERSON REQUIRING HIM TO FU RNISH WITHIN SUCH PERIOD, AS MAY BE SPECIFIED IN THE NOTI CE, THE RETURN OF INCOME IN RESPECT OF EACH ASSESSMENT YEAR FALLING WITHIN SIX ASSESSMENT YEARS REFERRED TO IN CLAUSE (B), IN THE PRESCRIBED FORM AND VERIFIED IN THE PRE SCRIBED MANNER AND SETTING FORTH SUCH OTHER PARTICULARS AS MAY BE PRESCRIBED AND THE PROVISIONS OF THIS ACT SHALL, SO FAR AS MAY BE, APPLY ACCORDINGLY AS IF SUCH RETURN WERE A RETURN REQUIRED 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 FAL LING WITHIN SUCH SIX ASSESSMENT YEARS: 7 PROVIDED FURTHER THAT ASSESSMENT OR REASSESSMENT, IF ANY, RELATING TO ANY ASSESSMENT YEAR FALLING WITHIN THE PERIOD OF SIX ASSESSMENT YEARS REFERRED TO IN THIS SECTION PENDIN G ON THE DATE OF INITIATION OF THE 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, SE CTION 153B AND SECTION 153C , ALL OTHER PROVISIONS OF THIS ACT SHALL APPLY TO THE 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 1 53 , 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 SECTI ON 153A , WITHIN A PERIOD OF TWO YEARS FROM THE END OF THE FINANCIAL YEAR IN WHICH THE LAST OF THE AUTHORISATIONS FOR SEARCH UNDER SEC TION 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 T HE LAST OF THE AUTHORISATIONS FOR SEARCH UNDER SECTION 132 OR FOR REQUISITION UNDER SECTION 132A WAS EXECUTED : [ PROVIDED THAT IN CASE OF OTHER PERSON REFERRED TO IN SECTIO N 153C , THE PERIOD OF LIMITATION FOR MAKING THE ASSESSMEN T OR REASSESSMENT SHALL BE THE PERIOD AS REFERRED TO IN CLAUSE (A) OR CLAUSE (B) OF THIS SUB-SECTION OR ONE YEAR FROM THE END OF THE FINANCIAL YEAR IN WHICH BOOKS OF ACCOUNT OR DOCUMEN TS OR ASSETS SEIZED OR REQUISITIONED ARE HANDED OVER UNDER SECTI ON 153C TO THE ASSESSING OFFICER HAVING PROVIDED FURTHER THAT IN THE CASE WHERE THE LAST OF THE AUTHORISATIONS FOR SEARCH UND ER 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 THE WORDS TWENTY-ONE MONTHS HAD BEEN SUBSTITUTED; (II) THE PERIOD OF LIMITATION FOR MAKING THE ASSES SMENT OR RE- ASSESSMENT IN CASE OF OTHER PERSON REFERRED TO IN S ECTION 153C , SHALL BE THE PERIOD OF TWENTY-ONE MONTHS FROM THE E ND OF THE FINANCIAL YEAR IN WHICH THE LAST OF THE AUTHORISATI ONS FOR SEARCH UNDER SECTION 132 OR FOR REQUISITION UNDER SECTION 132A WAS 8 EXECUTED OR NINE MONTHS FROM THE END OF THE FINANCI AL YEAR IN WHICH BOOKS OF ACCOUNT OR DOCUMENTS OR ASSETS SEIZE D OR REQUISITIONED ARE HANDED OVER UNDER SECTION 153C TO THE ASSESSING OFFICER HAVING JURISDICTION OVER SUCH OTH ER PERSON, WHICHEVER IS LATER :] [PROVIDED ALSO THAT IN CASE WHERE THE LAST OF THE AUTHORISATIONS FOR SEARCH UNDER SECTION 132 OR FOR REQUISITION UNDER SECTION 132A WAS EXECUTED DURING THE FINANCIAL YEAR COMMENCING ON THE 1ST DAY OF APRIL, 2005 OR ANY SUBSEQUENT FINANCIAL YEAR AND DURING THE COURSE OF THE PROCEEDINGS FOR THE ASSESS MENT 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 FOR SEARCH UNDER SECTION 132 OR FOR REQUISITION UNDER SECTION 132A WAS EXECUTED DURING THE FINANCIAL YEAR COMMENCING ON THE 1ST DAY OF APRIL, 2005 OR ANY SUBSEQUENT FINANCIAL YEAR AND DURING THE COURSE OF THE PROCEEDINGS FOR THE ASSESS MENT OR REASSESSMENT OF TOTAL INCOME IN CASE OF OTHER PERSO N 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, NO TWITHSTANDING ANYTHING CONTAINED IN CLAUSE (II) OF THE SECOND PRO VISO, BE THE PERIOD OF THIRTY-THREE MONTHS FROM THE END OF THE F INANCIAL YEAR IN WHICH THE LAST OF THE AUTHORISATIONS FOR SEARCH UNDER SECTION 132 OR FOR REQUISITION UNDER SECTION 132A WAS EXECUTED OR TWENTY-ONE MONTHS FROM THE END OF THE FINANCIAL YEA R IN WHICH BOOKS OF ACCOUNT OR DOCUMENTS OR ASSETS SEIZED OR R EQUISITIONED ARE HANDED OVER UNDER SECTION 153C TO THE ASSESSING OFFICER HAVING JURISDICTION OVER SUCH OTHER PERSON, WHICHEV ER 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 A CCOUNTS AUDITED 9 UNDER SUB-SECTION (2A) OF SECTION 142 AND ENDING ON THE DAY ON WHICH THE ASSESSEE IS REQUIRED TO FURNISH A REPORT OF SUCH AUDIT 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 COMM ENCING FROM THE DATE ON WHICH SUCH APPLICATION IS MADE AND ENDI NG WITH THE DATE ON WHICH THE ORDER UNDER SUB-SECTION (1) OF SE CTION 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 ADVANC E RULINGS UNDER SUB-SECTION (1) OF SECTION 245Q AND ENDING WITH THE DATE ON WHICH THE ORDER REJECTING THE APPLICATION IS REC EIVED BY THE COMMISSIONER 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 ADVANC E RULINGS UNDER SUB-SECTION (1) OF SECTION 245Q AND ENDING WITH THE DATE ON WHICH THE ADVANCE RULING PRONOUNCED BY IT IS REC EIVED BY THE COMMISSIONER 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 CLAUSE (A) OR CLAUSE (B) OF THIS SECTION* AVAILABLE TO THE ASSESSING OFFICER FOR MAKING AN ORDER OF ASSESSMENT OR REASSESSMENT, AS THE CASE MAY BE, IS LESS THAN SIXTY DAYS, SUCH REMAINING PER IOD SHALL BE EXTENDED TO SIXTY DAYS AND THE AFORESAID PERIOD OF LIMITATION SHALL BE DEEMED TO BE EXTENDED ACCORDINGLY. (2) THE AUTHORISATION REFERRED TO IN CLAUSE (A) AND CLAUSE (B) OF SUB-SECTION (1) SHALL BE DEEMED TO HAVE BEEN EXECUT ED, (A) IN THE CASE OF SEARCH, ON THE CONCLUSION OF SE ARCH AS RECORDED IN THE LAST PANCHNAMA DRAWN IN RELATION TO ANY PERSON 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, BULLION, JEWELLERY OR OTHER VALUABLE ARTICLE OR THI NG OR BOOKS OF ACCOUNT OR DOCUMENTS SEIZED OR REQUISITIONED BELONG S OR BELONG TO A PERSON OTHER THAN THE PERSON REFERRED TO IN SE CTION 153A , THEN THE BOOKS OF ACCOUNT OR DOCUMENTS OR ASSETS SE IZED OR REQUISITIONED SHALL BE HANDED OVER TO THE ASSESSING OFFICER 10 HAVING JURISDICTION OVER SUCH OTHER PERSON AND THAT ASSESSING OFFICER SHALL PROCEED AGAINST EACH SUCH OTHER PERSO N AND ISSUE SUCH OTHER PERSON NOTICE AND ASSESS OR REASSESS INC OME OF SUCH OTHER PERSON IN ACCORDANCE WITH THE PROVISIONS OF S ECTION 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 REC EIVING THE BOOKS OF ACCOUNT OR DOCUMENTS OR ASSETS SEIZED OR R EQUISITIONED BY THE ASSESSING OFFICER HAVING JURISDICTION OVER S UCH 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 PREV IOUS YEAR IN WHICH SEARCH IS 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 SUCH 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 ASSESSING OFFICER SHALL ISSUE THE NOTICE AND ASSESS OR REASSESS TOTAL INCOM E OF SUCH OTHER PERSON OF SUCH ASSESSMENT YEAR IN THE MANNER PROVID ED IN SECTION 153A .] 9.1 HONBLE SUPREME COURT IN THE CASE OF MANISH MAH ESHWARI VS. ACIT AND OTHERS, 289 ITR 341 CONSIDERING THE EARLIER PROVISI ONS 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 DOCUMENTS OR A SSETS HAVE BEEN REQUISITIONED UNDER SECTION 132A. THE SAID PROVISIO N WOULD APPLY IN THE CASE OF ANY PERSON IN RESPECT OF WHOM SEARCH HAS BEEN CARRI ED OUT UNDER SECTION 132A OR DOCUMENTS OR ASSETS HAVE BEEN REQUISITIONED UNDE R SECTION 132A. SECTION 158BD, HOWEVER, PROVIDES FOR TAKING RECOURSE TO A B LOCK ASSESSMENT IN TERMS OF 11 SECTION 158BC IN RESPECT OF ANY OTHER PERSON, THE C ONDITIONS PRECEDENT WHEREFOR ARE : (I) SATISFACTION MUST BE RECORDED BY THE ASSE SSING OFFICER THAT ANY UNDISCLOSED INCOME BELONGS TO ANY PERSON, OTHER THA N 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 H AD BEEN HANDED OVER TO THE ASSESSING OFFICER HAVING JURISDICTION OVER SUCH OTH ER PERSON; AND (III) THE ASSESSING OFFICER HAS PROCEEDED UNDER SECTION 158BC AGAINST SUCH OTHER PERSON. THE CONDITIONS PRECEDENT FOR INVOKING THE PROVISION S OF SECTION 158BD, THUS, ARE REQUIRED TO BE SATISFIED BEFORE THE PROVISIONS OF T HE 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 REQUIS ITIONED UNDER SECTION 132A OF THE ACT. IT WAS FURTHER HELD LAW IN THIS REGARD IS CLEAR AND EXPLICIT. TH E ONLY QUESTION WHICH ARISES FOR OUR CONSIDERATION IS AS TO WHETHER THE NOTICE DATED FEBRUARY 6, 1996, SATISFIES THE REQUIREMENTS OF SECTION 158BD OF THE ACT. THE S AID NOTICE DOES NOT RECORD ANY SATISFACTION ON THE PART OF THE ASSESSING OFFIC ER. DOCUMENTS AND OTHER ASSETS RECOVERED DURING SEARCH HAD NOT BEEN HANDED OVER TO THE ASSESSING OFFICER 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 A SSESSING OFFICER HAVING JURISDICTION OVER THE MATTER, WE ARE OF THE OPINION THAT THE IMPUGNED JUDGMENTS OF THE HIGH COURT CANNOT BE SUSTAINED, WHICH ARE SE T ASIDE ACCORDINGLY. THE APPEALS ARE ALLOWED. HOWEVER, IN THE FACTS AND CIRC UMSTANCES 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 PERSON IT WAS FOUN D THAT THE ASSESSEE HAD UTILIZED UNDISCLOSED INCOME FOR MAKING CONTRIBUTION S TO CERTAIN UNREGISTERED CHITS CONDUCTED BY THE SAID PERSON. THEREAFTER, A S URVEY WAS CONDUCTED IN THE BUSINESS PREMISES OF THE ASSESSEE WHICH INDICATED C ERTAIN REAL ESTATE TRANSACTIONS CARRIED ON BY THE ASSESSEE AND PROFITS DERIVED THEREON HAD NOT BEEN DISCLOSED TO THE DEPARTMENT. THE ASSESSING OF FICER INCLUDED UNDER SECTION 158BB THE UNDISCLOSED INCOME FOUND DURING T HE SURVEY MADE UNDER SECTION 133A. THE COMMISSIONER (APPEALS) EXCLUDED T HAT PORTION WHICH HAD BEEN INCLUDED BASED ON THE MATERIAL FOUND DURING TH E SURVEY ON THE PREMISES THAT IN RESPECT OF BLOCK ASSESSMENT UNDER SECTION 1 58BB MATERIAL COLLECTED DURING THE SURVEY UNDER SECTION 133A COULD NOT BE T AKEN INTO CONSIDERATION. THIS WAS CONFIRMED BY THE TRIBUNAL. ON APPEAL CONTE NDING THAT THE MATERIAL GATHERED IN THE COURSE OF SURVEY UNDER SECTION 133A COULD ALSO BE REGARDED AS A MATERIAL FOR THE PURPOSE OF BLOCK ASSESSMENT UNDE R SECTION 158BB: 12 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 INTERFERENCE. 9.3. SEC. 153A OF THE IT ACT STARTS WITH THE WORD NOTWITHSTANDING ANYTHING CONTAINED, IT IS NON-OBSTANTE CLAUSE. FOR APPLICAB ILITY OF ABOVE PROVISION, THE INITIATION OF SEARCH IS NECESSARY. ONCE A WARRANT O F AUTHORIZATION OR REQUISITION IS ISSUED AND SEARCH IS CONDUCTED AND PANCHNAMA IS DRA WN, THE ASSESSMENTS FOR THE ALL THE RELEVANT YEARS WOULD GET REOPENED IRRESPECT IVE OF WHETHER ANY INCRIMINATING MATERIAL IS FOUND OR NOT IN RELATION TO A PARTICULA R AY. IN OTHER WORDS, EVEN IF THE MATERIAL FOUND SHOWS THE CONCEALMENT IN ONLY ONE YE AR, ALL THE COMPLETED ASSESSMENTS FALLING IN THE PERIOD OF SIX AYS PRECED ING THE YEAR OF SEARCH WILL GET REOPEN. THERE WAS AN IDENTICAL PROVISION CONTAINED IN CHAPTER XIV-B OF THE ACT, WHICH PROVIDES 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 PROCEED TO ASSESS UNDISCLOSED INCOME IN ACCORDANCE WITH PROVISIONS OF CHAPTER XIV-B FOR MAKING ASSESSMENT FOR BLOCK PERIOD BUT IN THE BLOCK ASSESS MENTS, THE QUESTION OF ASSESSING AN UNDISCLOSED INCOME IN RELATION TO ANY AY WAS RES TRICTED TO THE INCRIMINATING MATERIAL ON UNDISCLOSED ASSETS DISCOVERED DURING TH E COURSE OF SEARCH AND SEIZURE OR IN THE POST SEARCH INQUIRY THE MATERIAL WAS RELA TABLE TO SUCH EVIDENCE DISCOVERED IN SEARCH. THE INCOME ASSESSED IN THE REGULAR ASSES SMENTS WAS NOT TO BE CONSIDERED IN THE BLOCK ASSESSMENTS. HOWEVER, IN THE PRESENT P ROVISIONS U/S 153A, THERE IS NO SUCH PROVISION PROVIDED IN THE ACT. ONCE WARRANT OF AUTHORIZATION IS ISSUED AND THE SEARCH IS CONDUCTED AND PANCHNAMA IS DRAWN, THE ASS ESSMENTS FOR ALL THE SEVEN YEARS INCLUDING THE CURRENT YEAR HAVE TO BE COMPLET ED U/S 153A, 153B AND 153C. EVEN THE ASSESSMENTS WHICH ARE COMPLETED BEFORE THE DATE OF SEARCH SHALL GET REOPENED AND THOSE ASSESSMENTS WHERE THE PROCEEDING S ARE PENDING AT THE TIME OF SEARCH SHALL ABATE. THE AO, THEREFORE, SHALL ASSESS OR REASSESS SUCH INCOME FOR ALL THESE YEARS. 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 A GAINST 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 ACCOU NTS OR DOCUMENTS SEIZED OR REQUISITIONS BELONGS OR BELONG TO A PERSON OTHER THAN THE PERSON REFERRED TO IN SEC. 153A. 13 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 CONTAINED U/S SE C. 158BA, 158BB AND 158BC AS COMPARED TO SEC. 153A BUT THE PROVISIONS CONTAIN ED U/S 158BD ARE MORE OR LESS SIMILAR TO PROVISIONS CONTAINED IN SEC. 153C OF THE IT ACT EXCEPT UNDISCLOSED INCOME WHICH IS MENTIONED IN SEC. 158BD, HOWEVER, IN SEC. 153C, IT IS MENTIONED ANY MONEY, BULLION, JWELLERY OR OTHER VALUABLE ARTI CLES OR THINGS OR BOOKS ACCOUNTS OR DOCUMENTS SEIZED OR REQUISITIONS. THE CONDITIONS PRECEDENT FOR INVOKING PROVISIONS U/S 158BD AS IS HELD BY HONBLE SUPREME COURT IN THE CASE OF MANISH MAHESHWARI (SUPRA) ARE THEREFORE SAME AS ARE PROVID ED U/S 153C OF THE IT ACT. IT IS ADMITTED FACT THAT NO SEARCH WARRANT WAS EXECUTE D IN THE CASE 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, PROCEEDED AGAINS T THE ASSESSEE U/S 153C OF THE IT ACT. THIS VIEW IS FURTHER STRENGTHENED BY THE JU DGMENT OF HONBLE GUJRAT HIGH COURT IN THE CASE OF VIJAYBHAI N. CHANDRANI VS. ACI T, 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 S EARCH AND REQUISITION. SECTION 153C WHICH IS SIMILARLY WO RDED TO SECTION 158BD OF THE ACT, PROVIDES THAT WHERE THE ASSESSING OFFICER IS SATISFIED THAT ANY MONEY, BULL ION, JEWELLERY OR OTHER VALUABLE ARTICLE OR THING OR BOO KS OF ACCOUNT OR DOCUMENTS SEIZED OR REQUISITIONED BELONG S OR BELONG TO A PERSON OTHER THAN THE PERSON REFERRED T O IN SECTION 153A HE SHALL PROCEED AGAINST EACH SUCH OTH ER PERSON AND ISSUE SUCH OTHER PERSON NOTICE AND ASSES S OR REASSESS INCOME OF SUCH OTHER PERSON. HOWEVER, THER E IS A DISTINCTION BETWEEN THE TWO PROVISIONS INASMUCH AS UNDER SECTION 153C NOTICE CAN BE ISSUED ONLY WHERE THE MO NEY, BULLION, JEWELLERY OR OTHER VALUATION ARTICLE OR TH ING OR BOOKS OF ACCOUNT OR DOCUMENTS SEIZED OR REQUISITION ED BELONG TO SUCH OTHER PERSON, WHEREAS UNDER SECTION 158BD IF THE ASSESSING OFFICER WAS SATISFIED THAT A NY UNDISCLOSED INCOME BELONGS TO ANY PERSON, OTHER THA N THE PERSON WITH RESPECT TO WHOM SEARCH WAS MADE UNDER SECTION 132 OR WHOSE BOOKS OF ACCOUNT OR OTHER DOCU MENTS OR ASSETS WERE REQUISITIONED UNDER SECTION 132A, HE COULD PROCEED AGAINST SUCH OTHER PERSON UNDER SECTION 158 BC. THUS A CONDITION PRECEDENT FOR ISSUING NOTICE UNDER 14 SECTION 153C AND ASSESSING OR REASSESSING INCOME OF SUCH OTHER PERSON, IS THAT THE MONEY, BULLION, JEWELLERY OR OTHER VALUABLE ARTICLES OR THING OR BOOKS OF ACCOUNT OR DOCUMENTS SEIZED OR REQUISITIONED SHOULD BELONG TO SUCH PERSON. IF THE REQUIREMENT IS NOT SATISFIED, RECOUR SE CANNOT BE HAD TO THE PROVISIONS OF SECTION 153C. HELD, ALLOWING THE PETITION, THAT ADMITTEDLY, THE T HREE LOOSE PAPERS RECOVERED DURING THE SEARCH PROCEEDINGS DID NOT BELONG TO THE PETITIONER. IT WAS NOT THE CASE OF TH E REVENUE THAT THE THREE DOCUMENTS WERE IN THE HANDWRITING OF THE PETITIONER. IN THE CIRCUMSTANCES, WHEN THE CONDITIO N 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 MONE Y, BULLION, JWELLERY OR OTHER VALUABLE ARTICLES OR THINGS OR BOOKS ACCOUNTS OR DO CUMENTS SEIZED OR REQUISITIONED BELONGS TO OR BELONG TO A PERSON OTHER THAN THE PER SON REFERRED TO IN SEC. 153A. NO MATERIAL IS PRODUCED BEFORE US TO SHOW IF ANY SATIS FACTION WAS RECORDED BY THE AO IN THAT CASE THAT THE SEIZED MATERIAL BELONGS TO AN Y PERSON OTHER THAN THE PERSON 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 SEARCHED. NO MATERIAL IS PRODUCED IN REFERENCE TO ABOVE REQUIREMENT. NO MATERIAL IS ALSO PRODUCED BEFORE US TO SHOW THAT BOOKS ACCOUNTS OR DOCUMENTS OR ASSETS SEIZED H AD BEEN HANDED OVER TO THE AO HAVING JURISDICTION OVER SUCH OTHER PERSON. IN THE ABSENCE OF ANY ADEQUATE MATERIAL PRODUCED BY LD. DR, WE FIND THE CONTENTION OF LD. C OUNSEL FOR ASSESSEE WAS JUSTIFIED THAT IN THIS CASE, THE AO HAS NOT RECORDED ANY SATI SFACTION THAT ANY SEIZED DOCUMENT OR MATERIAL BELONGS TO ANY PERSON OTHER THAN THE PE RSON SEARCHED. SINCE THE REVENUE IS IN APPEAL, THEREFORE, BURDEN WAS UPON TH EM TO PROVE THAT NECESSARY INGREDIENTS OF SEC. 153C HAVE BEEN COMPLIED WITH IN THIS CASE BEFORE INVOKING JURISDICTION U/S 153C OF THE IT ACT. WE MAY ALSO AD D HERE THAT THE AO HAS NOT REFERRED TO ANY SEIZED DOCUMENT OR MATERIAL IN THE ASSESSMENT ORDERS ON THE BASIS OF WHICH, ADDITIONS ON MERIT HAVE BEEN MADE. THEREF ORE, 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 OF THE LD. CIT(A) IN QUA SHING THE PROCEEDINGS U/S 153C OF THE IT ACT. 15 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 NOWHERE RECORDE D ANY SATISFACTION AS REQUIRED U/S. 153C OF THE IT ACT. DUE TO THE SAME REASON, TH E SAME WAS NOT COMMUNICATED TO THE ASSESSEE. THE ISSUE IS, THEREFORE, SQUARELY COV ERED BY THE JUDGMENTS NOTED ABOVE AND THEREFORE, THE DECISION IN THE CASE OF DI GVIJAY CHEMICALS (SUPRA) CANNOT BE GIVEN PREFERENCE. WE, THEREFORE, DO NOT FIND ANY INFIRMITY IN THE ORDER OF THE LD. CIT(A) IN QUASHING THE ASSESSMENT ORDER U/S. 153C O F THE IT ACT. IN THE RESULT, GROUND NO. 1 OF DEPARTMENTAL APPEAL FAILS AND IS DI SMISSED. SINCE WE HAVE CONFIRMED THE QUASHING 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 ISSUES ON MERITS BRIE FLY IN THIS ORDER IN ONE OF THE APPEALS ONLY. 11. IN THE PRESENT CASE, STATEMENT OF THE ASSESSEE WAS RECORDED ON THE DATE OF SEARCH IN WHICH HE HAS SURR ENDERED RS. 10 LACS AS UNACCOUNTED INCOME. ACCORDING TO ASSESSMENT ORDER FOR ASSESSMENT YEAR 2008-09 DATED 30.12.2009, THE ASSESSEE WHILE FILING RETURN UNDER SECTION 153C HAS SURRENDERED RS. 10 LACS IN THE RETURN OF I NCOME SO FILED. THUS, THE STATEMENT OF THE ASSESSEE AND SURRENDER OF RS. 10 LACS WAS CONNECTED WITH THE ASSESSMENT YEAR 2008-09 ONLY. IN THE PRESENT ASSES SMENT YEAR UNDER APPEALS, ASSESSING OFFICER COMPUTED THE INCOME OF THE ASSESSEE ON THE BASIS OF THE RETURNED INCOME AND BY MAKING ADDITIONS OF RS. 51,000/- RS. 40,000/-, RS. 50,000/- + RS. 1,03,600/- AND RS. 69,610/- RESPECTI VELY IN ASSESSMENT YEARS 2004-05, 2005-06, 2006-07 AND 2007 -08. THE ADDITIONS WERE MADE ON ACCOUNT OF UNEXPLAINED C ASH DEPOSIT IN THE BANK ACCOUNT OR LOAN GIVEN OR REPAID . THUS, THE ADDITIONS IN THE PRESENT ASSESSMENT YEARS HAVE NO CO- RELATION WITH THE SURRENDER SO MADE BY THE ASSESSEE IN 16 ASSESSMENT YEAR 2008-09. THE LD. COUNSEL FOR THE ASSESSEE, THEREFORE, RIGHTLY CONTENDED THAT NEITHER ANY VALUABLE NOR ANY INCRIMINATING DOCUMENT OR BOOKS OF ACCOUNT WERE FOUND DURING THE COURSE OF SEARCH TO C ONNECT THE ASSESSEE WITH THE SAME. THUS, NOTHING WAS RECO VERED DURING THE COURSE OF SEARCH FOR ASSESSMENT YEAR UND ER APPEALS AND NO MATERIAL WAS FOUND WHICH MAY BELONG TO THE ASSESSEE FOR RECORDING ANY SATISFACTION UNDER SECTI ON 153C FOR INITIATING SUCH PROCEEDINGS AGAINST THE ASSESSE E. IN THE CASE OF M/S GLOBAL ESTATE (SUPRA), THE ISSUE IS CON SIDERED IN DETAIL AND IT WAS HELD THAT, SECTION 153C OF THE INCOME TAX ACT PROVIDES FOR TAKING RECOURSE TO ASSESSMENT OF INCOME OF ANY OTHER PERSON OTHER THAN THE PERSON SEARCHED AND THE CONDITION PRECEDENT FOR INVOKING SUCH PROVISION S AGAINST SUCH OTHER PERSONS ARE : (I) THE SEARCH OR REQUISITION MUST HAVE TAKEN PLACE IN THE CASE OF ANY PERSON; (II) WHERE THE ASSESSING OFFICER IS SATISFIED THAT ANY MONEY, BULLION, JEWELLERY OR OTHER VALUABLE ARTICLES OR OTHER THINGS OR BOOKS OF ACCOUNT OR DOCUMENTS SEIZED OR REQUISITIONED BELONGS OR BELONG TO A PERSON OTHER THAN THE PERSON REFERRED TO IN SECTION 153A; (III) 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; 17 (IV) THE ASSESSING OFFICER HAS PROCEEDED UNDER SECTION 153C AGAINST SUCH OTHER PERSON. 12. CONSIDERING THE FACTS RECORDED ABOVE IN THE LIG HT OF THE RTI INFORMATION PROVIDED BY THE ASSESSING OFFIC ER DATED 18.02.2015 CONFIRMING THAT THE INFORMATION SOUGHT B Y ASSESSEE WITH REGARD TO SATISFACTION RECORDED UNDER SECTION 153C ARE NOT FOUND IN THE RECORD OF THE OFFICE OF T HE REVENUE DEPARTMENT, WOULD CLEARLY SHOW THAT ASSESSE E HAD A CASE FOR QUASHING OF THE PROCEEDINGS UNDER SECTIO N 153C OF THE ACT. NO MATERIAL IS PRODUCED BEFORE US TO PR OVE THAT ASSESSING OFFICER, IN THE CASE OF THE PERSON SEARCH , WAS SATISFIED THAT ANY MONEY, BULLION, JEWELLERY OR OTH ER VALUABLE ARTICLES OR THINGS OR BOOKS OF ACCOUNT OR DOCUMENTS SEIZED OR REQUISITIONED BELONGS TO OR BELONG TO A PERSON OTHE R THAN PERSON REFERRED TO IN SECTION 153A. NO MATERIAL IS PRODUCED BEFORE US TO SHOW IF ANY SATISFACTION WAS RECORDED BY THE ASSESSING OFFICER IN THAT CASE OR DISCERNIBLE FROM RECORD THAT SEIZED MATERIAL BELONGS TO ANY PERSON OTHER TH AN THE PERSON WITH RESPECT TO WHOM SEARCH WAS MADE UNDER SECTION 132 OF THE ACT. RATHER, NO MATERIAL WAS FO UND DURING THE COURSE OF SEARCH WHICH MAY BELONG TO THE ASSESSEE FOR ASSESSMENT YEAR UNDER APPEALS. NO MAT ERIAL IS ALSO PRODUCED BEFORE US TO SHOW IF ANY BOOKS OF ACCOUNT, DOCUMENTS ETC. IF SEIZED, WERE HANDED OVER TO THE A SSESSING OFFICER HAVING JURISDICTION OVER SUCH OTHER PERSON. IN THE ABSENCE OF ANY SATISFACTION RECORDED AS REQUIRED UN DER SECTION 153C OF THE ACT AND NO MATERIAL IS HANDED O VER TO THE CONCERNED ASSESSING OFFICER, WOULD CLEARLY REVE AL THAT 18 ASSESSING OFFICER HAS NOWHERE RECORDED ANY SATISFAC TION AS REQUIRED UNDER SECTION 153C OF THE ACT. DUE TO THE SAME REASON, SAME WAS NOT COMMUNICATED TO THE ASSESSEE E VEN UNDER RTI APPLICATION. THE ISSUE IS, THEREFORE, SQU ARELY COVERED BY ORDER OF ITAT AGRA BENCH IN THE CASE OF GLOBAL ESTATE (SUPRA). THE DECISIONS RELIED UPON BY LD. DR , THEREFORE, WOULD NOT SUPPORT THE CASE OF THE REVENU E AND ARE CLEARLY DISTINGUISHABLE ON FACTS. 13. WE, THEREFORE, DO NOT FIND ANY JUSTIFICATION FO R THE AUTHORITIES BELOW FOR INITIATING OR CONFIRMING THE INITIATION OF PROCEEDINGS UNDER SECTION 153C OF THE ACT. WE, ACCORDINGLY, SET ASIDE AND QUASH THE PROCEEDINGS UN DER SECTION 153C OF THE INCOME TAX ACT, RESULTANTLY, AL L ADDITIONS MADE THEREIN WOULD STAND DELETED. SINCE, WE HAVE QUASHED THE ASSESSMENTS UNDER SECTION 153C OF THE ACT, THEREFORE, THERE IS NO NEED TO DECIDE THE ADDI TIONS ON MERITS. 14. IN THE RESULT, ALL THE APPEALS OF THE ASSESSEE ARE ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT. SD/- SD/- (ANNAPURNA MEHROTRA) (BHAVNESH SAINI) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED: 5 TH NOV., 2015. POONAM COPY TO: THE APPELLANT, THE RESPONDENT, THE CIT(A), THE CIT, DR ASSISTANT REGISTRAR, ITAT/CHD