TAPAN KUMAR DUTTA versus COMMISSIONER OF INCOME TAX, WEST BENGAL

Citation: [2018] 4 S.C.R. 338 · Decided: 24-04-2018 · Supreme Court of India · Bench: R.K. AGRAWAL · Disposal: Dismissed

Judgment (excerpt)

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338
SUPREME COURT REPORTS
[2018] 4 S.C.R.
TAPAN KUMAR DUTTA
v.
COMMISSIONER OF INCOME TAX, WEST BENGAL
(Civil Appeal No. 2014 of 2007)
APRIL 24, 2018
[R. K. AGRAWAL AND ABHAY MANOHAR SAPRE, JJ.]
Income Tax Act, 1961 – ss.158BD – Undisclosed income
belonging to any person other than the searched person –
Jurisdiction of assessing officer under s.158BD – Held:  Notice
under s.158BD can be issued to a person with respect to whom
search was not conducted but undisclosed income was found as
belonging to such person from the material seized from the residence
or business premises of the person with respect to whom search was
made under s.132 – s.158BD speaks of the condition that “where
the Assessing Officer is satisfied that any undisclosed income belongs
to any person other than the searched person”, which means that
the Assessing Officer must have to be satisfied that any undisclosed
income belongs to any person other than the searched person – In
the instant case, it is not in dispute that the Assessing Officer, who
is assessing the Firm as well as the Appellant, is the same person –
In other words, the same Assessing Officer having jurisdiction over
the searched person can proceed against the present Appellant –
Therefore, the Assessing Officer had jurisdiction to proceed against
the present Appellant to make a block assessment under Chapter
XIV-B of the IT Act, as he was prima facie satisfied that any
undisclosed income belongs to the appellant.
Income Tax Act, 1961 – ss.158BC – Jurisdiction of Assessing
Officer under s.158BC –  Held: Before issuing the notice under
s.158BC against the searched person, no satisfaction that
undisclosed income belongs to the searched person is necessary as
s.158BC speaks of a condition that where any search had been
conducted under s.132 or books of accounts or other documents
or assets or requisition under s.132A in case of any person, then,
the Assessing Officer shall serve notice to such person requiring
him to furnish within specified time a return in the prescribed form.
  [2018] 4 S.C.R. 338
338
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339
Dismissing the appeal, the Court
HELD: 1. Notice under Section 158BD can be issued to a
person with respect to whom search was not conducted but
undisclosed income was found as belonging to such person from
the material seized from the residence or business premises of
the person with respect to whom search was made under Section
132. There must be prima facie satisfaction on the part of the
Assessing Officer on the basis of searched books of accounts or
other documents or assets that any undisclosed income belongs
to any person other than the searched person. The jurisdiction
under Section 158BD is based on the satisfaction of the Assessing
Officer that:- (a) there is undisclosed income; (b) such undisclosed
income does not belong to the person with respect to whom action
under Section 132 was taken and; (c) such undisclosed income
belongs to some other person. Therefore, mere disclosure made
by the assessee before the authority cannot be the basis for
reaching a satisfaction that any undisclosed income belongs to
him unless the seized books of accounts or other documents or
assets are perused, examined or verified by the concerned
Assessing Officer. In the instant case, only after being satisfied
that the appellant fell within the ambit of Section 158BD, a notice
was issued by the Assessing Officer. [Paras 8, 9][343-F-G; 344-
D-F]
2. A conjoint reading of Sections 158BC and 158BD made
it clear that no satisfaction to the effect that undisclosed income
belongs to the searched person is necessary before issuing the
notice under Section 158BC against the searched person as
Section 158BC speaks of a condition that where any search had
been conducted under Section 132 or books of accounts or other
documents or assets or requisition under Section 132A in case
of any person, then, the Assessing Officer shall serve notice to
such person requiring him to furnish within specified time a return
in the prescribed form.  [Para 10][344-F-G]
CIVIL APPELLATE JURISDICTION:  Civil Appeal No. 2014
of 2007.
From the Judgment and Order dated 17.11.2005 of the High Court
of Calcutta in Income Tax Appeal No. 174 of 2005.
TAPAN KUMAR DUTTA v. COMMISSIONER OF INCOME
TAX, WEST BENGAL
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340
SUPREME COURT REPORTS
[2018] 4 S.C.R.
Salman Khurshid, Sr. Adv.,  K. V. Mohan, Ananda Sen,
Ms. Sanchita Ali, Zatin Khurshid, Advs. for the Appellant.
K. Radhakrishna, Sr. Adv.,

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