Dismissing the appeal of the revenue the Tribunal held that Assessments for 2006-07 and 2007-08 beyond purview of assessment. Amendment with effect from 1-4-2017 that block period for other person would be same six assessment years is prospective. Satisfaction note must justify that document found during search does not belong to person in respect of whom search conducted and clearly display reasons based for satisfaction that seized documents belong to another person. Satisfaction of higher forum, Settlement Commission, would prevail over opinion of Assessing Officer-Pen drive seized during search.. Addition made on protective basis in hands of assessee on basis of Satisfaction Note that pen drive belonged to assessee. Satisfaction of Assessing Officer of person in respect of whom search conducted defective and not sustainable in law. Order of Settlement Commission gives protection only to applicants before Settlement Commission-Substantive additions deleted. Protective additions cannot survive except in case of finding that income belongs to person in whose hands protective additions are made. (AY.2006-07 to 2011-12)
Dy. CIT v. Dalmia Bharat Sugar and Industries Ltd. (2021) 91 ITR 295 (Delhi)(Trib.)
S. 153C : Assessment-Income of any other person-Search-Assessments for 2006-07 and 2007-08 beyond purview of assessment-Amendment with effect from 1-4-2017 that block period for other person would be same six assessment years-prospective-Satisfaction note-Must justify that document found during search does not belong to person in respect of whom search conducted and clearly display reasons based for satisfaction that seized documents belong to another person-Satisfaction of higher forum, Settlement Commission, would prevail over opinion of Assessing Officer-Pen drive seized during search-Addition made on protective basis in hands of assessee on basis of Satisfaction Note that pen drive belonged to assessee-Satisfaction of Assessing Officer of person in respect of whom search conducted defective and not sustainable in law-Order of Settlement Commission gives protection only to applicants before Settlement Commission-Substantive additions deleted-Protective additions cannot survive except in case of finding that income belongs to person in whose hands protective additions are made. [S. 132, 153A, 245D, 245I]