Undisclosed income - Block assessment - Search and seizure - other party - Section 158BD - Held that - evidences/materials which are relevant are the copies of two agreements found during the course of search. The said agreements were entered between the searched party and the assessee herein. Thus, the impugned materials belonged to both the parties. The said agreements revealed money transactions, which have been accepted by the assessee herein. Hence, it may not be correct to say that the AO of the searched party could not draw conclusions about the undisclosed income of the assessee herein, as observed by Ld CIT(A). On the date of search itself, the ADIT examined the assessee herein u/s 131 of the Act by administering Oath and the assessee herein has confirmed the veracity of the agreements and also the money transactions noted therein - assessee, being the person other than the searched person, has himself has admitted and accepted the materials found during the course of search, that too, on the date of search itself. In this kind of situation, the AO of searched person was aware of this fact at the time of receipt of the materials and documents from the authorised officer itself, i.e., without examining the seized materials, the AO was aware of the fact that the impugned agreements also belonged to the assessee herein and further he is also aware of the fact that the assessee herein has also accepted the veracity of the agreements and the money transactions recorded therein. In this kind of clear situation, it may not be correct to insist that the AO should necessarily record the satisfaction contemplated u/s 158BD of the Act, as the same would mere be an empty formality, particularly in view of the fact that the assessee herein himself has accepted the incriminating materials - The satisfaction of the Assessing officer of the searched person would be mandatory, if the undisclosed income of such other person is found out by him for the first time and further the said materials were not confronted with such other person - the Assessing officer, before proceeding to assess the undisclosed income, should assume the jurisdiction over the said person in a proper and legally permitted way. There is no dispute in the instant case that the assessing officer of the assessee herein has assumed jurisdiction in a proper manner by issuing notice u/s 158B r.w.s. 158BC of the Act. Accordingly, in our view, the assessment framed by the AO u/s 158BD r.w.s. 158BC of the Act cannot be find fault with, in view of the peculiar facts and circumstances of the instant case - notice issued u/s 158BD was legally tenable - Decided in favour of Revenue............................... Income Tax - Case Law
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