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2018 (6) TMI 1223 - ITAT DELHIBlock assessment completed u/s 158BC r.w.s 158BD - Whether neither objection was raised against legal validity of proceedings before the A.O. nor any remedy was sought at any other level? - non recording of satisfaction - Held that:- There were no positive material found to arrive at satisfaction that undisclosed income has been earned by assessee. In the absence of any material, no satisfaction as is required under section 158BD could have been recorded. A.O. has failed to initiate valid proceedings against the assessee. The satisfaction note is an afterthought and ante- dated and prepared after submissions made by the assessee. No explanation have been given in this regard by the department. No satisfaction have been recorded by the A.O. in the case of the person searched. Therefore, no interference is called for in the matter. PB-365 is submission of the assessee in detail which have not been rebutted by the department in which the assessee has similarly explained that there were no incriminating material found during the course of search against the assessee in the case of Vatika Group of Companies and satisfaction note is anti dated. No satisfaction note has been recorded on the date of issue of notice under section 158BD of the Act dated 31.05.2005. The satisfaction note supplied to the assessee on 27.01.2006 is thus, anti-dated and had not been recorded on the date purported i.e., 31.05.2005. Our findings are based mainly on reasons that in the case of person searched, no incriminating material was found against the assessee, therefore, there were no reason to record satisfaction under section 158BD of the Act in the case of the person searched. - Decided in favour of assessee
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