Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2015 (8) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2015 (8) TMI 1393 - AT - Income TaxValidity of proceedings initiated u/s 158BD - Search and seizure operations carried out u/s 132 - period of limitation - delay of about 20 months in issuing notice - Held that:- The assessment under section 158BC of the Act of the searched persons was completed on 24.12.2003 and thereafter, satisfaction note was received by the Assessing Officer in-charge of the assessee on 06.04.2004. In view of the proposition laid down by the Hon’ble Supreme Court in CIT vs. Calcutta Knitwears (2014 (4) TMI 33 - SUPREME COURT) we hold that the Assessing Officer in-charge of the searched persons can record satisfaction note after the completion of assessment in the hands of the searched persons and forward the same to the Assessing Officer, who is in-charge of the other person, as provided under section 158BD of the Act. A notice which was issued and served upon the assessee after a considerable delay of about 20 months i.e. from the date of receipt of satisfaction note to the date of issue of notice under section 158BD of the Act, cannot be brushed aside. In view of the said notice under section 158BD of the Act being not issued within reasonable time, though there is no time limit provided under the Act to issue the said notice under section 158BD of the Act, the said notice issued under section 158BD of the Act is invalid notice. Following the ratio laid down by the Hon’ble Delhi High Court in CIT Vs. Bharat Bhushan Jain (2015 (1) TMI 705 - DELHI HIGH COURT ) in line with the proposition laid down by the Hon’ble Supreme Court in CIT vs. Calcutta Knitwears (supra), we hold that the notice issued under section 158BD of the Act in the present case was unduly delayed and the same is held invalid and void. - Decided in favour of assessee.
|