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2018 (7) TMI 1088 - ITAT KOLKATAValidity of the proceeding initiated u/s 158BD - main grievance of the assessee company is that sec. 158BD proceeding could not have been initiated against the assessee company because the shares seized from the premises of UIC Group did not belong to it, when the search was conducted on 07.05.2002 - Held that:- From the facts emerging as noted by us the assessee company though had purchased the shares of certain UIC Group companies in October, November, 1999 and February, 2000, it had been sold to the four persons named above before the date of search on 07.05.2002 and the assessee company has received the amount of ₹ 1,21,65,000/- through account payee cheque and has deposited it in bank account and have duly recorded in the books of account and incorporated the above details in the Income Tax Return. The jurisdictional fact for assumption of jurisdiction is absent and, therefore, the AO could not have invoked jurisdiction u/s. 158BD of the Act against the assessee company. Therefore, the AO erred in invoking sec. 158BD proceedings against the assessee company and, therefore, the order of AO passed after invoking section 158BD is ‘Null’ in the eyes of law and so has to be quashed. The jurisdictional fact which is the condition precedent for invoking jurisdiction u/s. 158BD is absent, the very invocation and framing of assessment u/s. 158BD is ab initio void and consequently is null in the eyes of law and is quashed. Since the facts of the other four appeals are identical and orders have been passed without satisfying the jurisdictional fact for invoking jurisdiction u/s. 158BD AO lacks jurisdiction to initiate and pass orders in consequence to sec. 158BD of the Act, therefore, the impugned orders passed by the AO are null in the eyes of law and are, therefore, quashed. - Decided in favour of assessee.
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