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2015 (7) TMI 1296 - ITAT PUNEValidity of notice issued u/s.158BD - block assessment - requisite conditions for such notice were not satisfied - addition u/s 68 and 69C - Held that:- There is no proof with the Department that money was given by the assessee to M/s. Maheshwari Financiers for obtaining the cheques or that after the loans were obtained cash was withdrawn and given to M/s. Maheswari Financiers. Merely on the basis of statement of the Accountant and without any corroborative evidence the addition made by the AO in a block assessment passed u/s.158BD r.w.s. 158BC which has been upheld by the CIT(A), in our opinion, is not correct and proper. Also the block assessment order passed in the case of the searched person has been set aside by the CIT u/s.263 on 23-03-2006. Subsequent to the order passed u/s.263 the AO completed the assessment of the searched persons on 29-12-2006 by making addition u/s.69A amounting to ₹ 1,63,77,713/- as money lent to third parties, a statement made by the Ld. Counsel for the assessee at the bar and not controverted by the Ld. Departmental Representative. Therefore, we find merit in the submission of the Ld. Counsel for the assessee that when the order passed u/s.263 is in force in case of the searched person, there was no question of making addition in the hands of the assessee Since in the instant case the block assessment of the searched persons were completed on 24-12-2003 and since the notice u/s.158BD was issued on 10-02-2006, i.e. after a gap of 26 months, therefore, in view of the decision of the Hon’ble Delhi High Court in the case of Bharat Bhushan Jain [2015 (1) TMI 705 - DELHI HIGH COURT]) the notices issued u/s.158BD are not in conformity with the requirements of section 158BD which were unduly delayed. Therefore, the notice issued u/s.158BD has to be held as invalid and void. - Decided in favour of assessee.
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