Smt. Rekhaben Thakkar v. Assistant Commissioner of Income-tax, Central Circle-1, Baroda

IT : When cheque issued by assessee to searched person was found from searched person, cheque did no more continue to belong to assessee; further where no satisfaction was recorded by Assessing Officer of person searched and cheque was also undated, conditions for issuing notice to assessee under section 153C were not satisfied
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[2015] 61 taxmann.com 60 (Ahmedabad - Trib.)
IN THE ITAT AHMEDABAD BENCH 'A'
Smt. Rekhaben Thakkar
v.
Assistant Commissioner of Income-tax, Central Circle-1, Baroda*
G.D. AGRAWAL, VICE-PRESIDENT
AND S.S. GODARA, JUDICIAL MEMBER
IT APPEAL NOS. 3088 TO 3093 (AHD.) OF 2008 AND 666 TO 671 (AHD.) OF 2010
[ASSESSMENT YEARS 1999-2000 TO 2004-05]
JUNE  12, 2015
Section 153C of the Income-tax Act, 1961 - Search and seizure - Assessment of income of any other person (Condition precedent) - Assessment years 1999-2000 to 2004-05 - During search at premises of Group K, an undated cheque issued by assessee in favour of its director was seized - Assessing Officer issued notice under section 153C to assessee - Whether where no satisfaction was recorded by Assessing Officer of person searched, and satisfaction was recorded by Assessing Officer of assessee being 'other person', notice issued to assessee under section 153C was not valid - Held, yes - Whether since cheque, on basis of which notice was issued, was undated, it could not be said to pertain to any of years for which notice was issued - Held, yes - Whether since cheque was in name of director of Group K which was searched and cheque was found from person upon whom cheque was drawn, cheque, in fact, belonged to said group and could not be said to be continued to 'belonging to' assessee who issued cheque - Held, yes - Whether, therefore, conditions for issue of notice to assessee under section 153C were not satisfied - Held, yes [Para 17] [In favour of assessee]