Re: How to decide whether its search case or Not connected to Search or Survey

One of the cleint is Surveyed as per the notice issued by the department on date of survey. On same day, the house of the Director and also the business premises of the associate concerns was searched.
But there is no mention of search carried out in Director’s House or associate biusinesses in survey notice, assessment proceedings or Order.
Further, there is no materials found or seized during the search with any coonectivity to survey.
Should we consider that as Survey or Search or in connection with search?

Querist case  has to be treated  as case of survey and not search .   We presume there was neither any  warrant in the name of the assessee nor the notice was issued under section 153C of the Act . Please refer Circular No . 21 of 2020 dt .4-12 -2020  , Q. No 70 and Answer given by the CBDT. Q. 70. If the assessment order has been framed in the case of  a taxpayer under section 143 (3) /144 of the Act  based on the Search executed in some other tax payers’s case , whether it is to be considered as a search case or non -search case under Vivad se Vishwas ?  Ans . Such case is to be considered as a Search Case .

According to us  the interpretation of the CBDT is not in accordance with provision of the VSV  Act.  A Writ petition is filed before the Bombay High Court in Sushil  Bhatia HUF v .PCIT ( WPNO. (L) (No. 4666of 2021 dt 23 -2 -2021  . Before the Bombay High Court Delhi High Court order in Ashsih Saraf v .PCIT dt 15 -2 -2021 was relied . The matter  is adjourned to 17 -3 -2021 .  We hope the Court may decide on 17 -3 -2021 .    

 

---