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Search and assessment

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G. Nitesh Jain

CA Final

43 Points Posted on 05 July 2021

Dear all ,

There has been search and Seizure by the IT Department in premises of Mr.X and they found a bank locker key and after searching they found an undisclosed amount in the locker .
The locker was in the name of Mr.Y ,who opened the locker on request of Mr.X for his use and Mr.Y has never used this locker nor he has any knowledge of the valuables kept in locker
After identifying by dept that locker was of Mr.Y they have questioned Mr.Y and Mr. Y gave a statement that he has no belonging and usage of the locker and he has opened the locker only for use of Mr.X and even Mr.X has given a Statement that the undisclosed amount is of Mr.X only .
Now the dept has given a notice to Mr.Y asking u/s 143(2) asking details regarding the search and Seizure
Can anyone help me with some relevant case laws regarding the issue where Mr.Y is respondent.

Replies (2)

Quick Summary

An IT department search found an undisclosed amount in a bank locker registered to Mr. Y, though it was opened for Mr. X's use. Both Mr. X and Mr. Y provided statements confirming the contents belonged to Mr. X and Mr. Y had no knowledge or use of the locker. Despite this, Mr. Y received a notice under Section 143(2) and is seeking guidance on his position, particularly if he acted as an agent or bailee.

veerendar singh

tax consultant

1829 Points Posted on 05 July 2021

No need to rely on any case law.
go with your own ideas and arguments.

mr. y was acting as an agent or a bailee. there is no concealed income or assets of mr. y has also given statement on oath before an Income tax authority. if u have a copy then give it to your AO.