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2010 (5) TMI 889 - AT - Income TaxValidity of Block assessment proceedings - Undisclosed income of another person u/s 158BD - period of limitation - satisfaction u/s.158BD has not been recorded by AO of the person searched and notices u/s.158BD has been issued much after the closer of block assessment proceedings u/s.158BC of the person searched - HELD THAT:- As held in Saroj Nursing Home [2007 (9) TMI 325 - ITAT LUCKNOW-B] that proceedings u/s.158BD can be initiated on the satisfaction of the Assessing Officer having jurisdiction over person searched to tax undisclosed Income-tax pertaining to third person who is not subjected to search and books of accounts and in other documents were handed over to the Assessing Officer having jurisdiction over such third person but proceedings initiated u/s.158BD of the Act after a period of six years cannot be regarded as valid. In the case of Shri Vishnubhai R Barot [2009 (12) TMI 987 - ITAT AHMEDABAD] it was held, following the decision of Hon’ble Supreme Court in the case of Manish Maheshwari v [2007 (2) TMI 148 - SUPREME COURT] and Manoj Agarwal. [2008 (7) TMI 446 - ITAT DELHI-A] held that without there being satisfaction recorded prior to completion of assessment of the person searched proceedings so initiated u/s.158BD will not be valid. In that case notice u/s.158BD was issued on 10-06-2004. But searched against Ohm Developers was carried out on 29-10-1999, therefore assessment u/s. 158BD thereof completed after 31-10-2001 could not be held valid. Following these decisions, we hold that the block assessment famed in case of assessee are not legally valid and therefore are quashed for the reason that notices u/s.158BD were issued in these cases long after completion of assessment in the case of person searched i.e. Ohm Developers.
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