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2013 (3) TMI 177 - PUNJAB & HARYANA HIGH COURTBlock assessment - notice u/s 158BC - Tribunal cancelled the assessments as invalid and void-ab-initio? - Held that:- The Tribunal has rightly pointed out that jurisdiction to assess the undisclosed income for the block period under Chapter XIV-B vests in the AO by virtue of the provisions of Section 158BA in a case where a search under Section 132 is initiated after 30.6.1995. Again, in term of Section 158 BC, a notice under that Section can be issued where any search has been conducted under Section 132. However, assessment is to be carried out in respect of undisclosed income of other person i.e. a person in whose case, there was no search made under Section 132 of the Act, the provisions of Section 158 BD are to be invoked. As in the present case as emerges from the record there is no authorization of search or search warrants under Sections 132 (i) in respect of these assessees. No doubt, while searching the premises of their father Lal Singh, some documents and other material which were not belonging to the assessees were seized and on that basis, there could be block assessment. However, in such a situation when there was no authorization in respect of these assessees, it is the provisions of Section 158 BD which would be attracted and not the provisions of 158 BC. Such an assessment without authorization is void ab-initio. See Promain Ltd. vs. DCIT [2005 (6) TMI 224 - ITAT DELHI] & Ajit Jain Vs. Union of India [2000 (1) TMI 41 - DELHI HIGH COURT] upheld in [2003 (1) TMI 97 - SUPREME COURT] Thus search under Section 132 is a pre- requisite for invoking the provisions of the said Chapter XIV-B - in favour of assessees.
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