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Section 158BD of the Income-tax Act, 1961 - Block assessment in search cases - Undisclosed income of any other person - Block period 1-4-1989 to 27-7-1999 Where Assessing Officer having jurisdiction over searched person, had assessed a sum in hands of searched person, initiation of proceedings against assessee (third party) to assess same sum was not justified [In favour of assessee] Recording of satisfaction by the Assessing Officer, having jurisdiction of the searched person, that some undisclosed income belongs to a person other than a searched person, is mandatory before proceedings under section 158BD can be initiated against such other person. The Assessing Officer of the searched company had vide the assessment completed by him already added, on substantive basis, the sum of Rs. 11.53 lakhs to the assessment of the said company. However, proceedings under section 158BD/158BC had been started against the assessee to bring to tax the same amount in the assessee's hands. Held that, from the action of the Assessing Officer it could be clearly inferred that the said Assessing Officer was satisfied that the investment did not belong to some other person. In such a case the proceedings under section 158BD/158BC, insofar as the assessee who was not the searched company, were without jurisdiction as it could not be said that satisfaction as required under section 158BD had been recorded by the Assessing Officer having jurisdiction over the searched person. Ms. Rashmi Chopra for the Appellant. and S.R. Wadhwa for the Respondent. JUDGMENT Siddharth Mridul, J.-This appeal of the Revenue is directed against the order of the Income-tax Appellate Tribunal dated January 31, 2008, in IT (SS) A No. 185/DELHI/2006 for the block period April 1, 1989 to July 27, 1999. 2. A search under section 132 of the Income-tax Act, 1961 (hereinafter referred to as "the said Act"), had been conducted at the residential premises of Sh. R. K. Gupta and Sh. Devender Gupta and their company named M/s. Chintpurni Constructions Pvt. Ltd. The block assessment in the case of the said M/s. Chintpurni Constructions Pvt. Ltd. was completed by the Assessing Officer of the searched person, vide order…

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