AO must record Requisite satisfaction of person searched to assume jurisdiction u/s 158BD

We set aside the order of the learned CIT(A) and restore the entire matter back to his file for fresh decision. He should first decide the technical aspect as to whether requisite satisfaction was recorded by the AO of searched person or not in order to decide as to whether the AO has properly assumed jurisdictional under Section 158BD of the Act or not. If it is found that the AO has not assumed proper jurisdiction under Section 158BD of the Act, then the assessment order deserves to be quashed, and in case, it is found that proper satisfaction was recorded and assumption of jurisdictional under Section 158BD of the Act by the AO is proper, then various other issues including technical and issues on merits should be decided by the learned CIT(A) afresh. Needless to say, the learned CIT(A) should pass a speaking order after providing reasonable opportunity of hearing to both the sides. This additional ground of the assessee is allowed for statistical purpose.

 ITAT AHMEDABAD, “B” BENCH

BEFORE SHRI D.K. TYAGI, JUDICIAL MEMBER
AND
A.K. GARODIA, ACCOUNTANT MEMBER

IT(SS)A. No.37/Ahd/2005
[Block Period ending 21^st December, 1999]

Jaydeep Enterprises Vs. ACIT, Cent. Cir. 1(4)

Date of Hearing : 2^nd January, 2013

Date of Pronouncement : 24-01-2013

O R D E R

PER A.K. GARODIA, ACCOUNTANT MEMBER: