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2012 (6) TMI 382 - HC - Income TaxCancelling a block assessment - notice for assessment under Section 158BD – as issuing notice for assessment did not record reasons – Held that:- Since the business premises and the residence of Sri.Abdul Gafoor and his wife Mrs.Souda Gafoor who is the managing partner of the respondent-assessee were one and the same, the AO who has jurisdiction to assess the searched assessees was the same officer who has jurisdiction to assess the respondent-firm as well - no scope for transfer of file from one AO having jurisdiction over the searched assessee to another AO for assessment u/s 158BD as both the searched assessee and the assessee in respect of whom details of suppressed income were received, were assessable by the same Assessing Officer - when the same Assessing Officer has jurisdiction to assess the searched assessee under Section 158BC and the other assessee under Section 158BD whose undisclosed income is also found in the course of such search, there is no necessity for the AO to record satisfaction as required under Section 158BD because there is no transfer of file from one officer to another - setting aside the order of the Tribunal and uphold the assessment under Section 158BD - in favour of revenue. Assessment is also barred by limitation – Held that:- As it is prudent that there is no time limit prescribed under the Act for issuance of notice under Section 158BD and the AO has to first complete the assessment that gets time barred first and then proceed to make assessment under Section 158BD later – as assessment was initiated under Section 158BD within two months from completion of assessment under Section 158BC against searched assessees which was made within time – thus the assessment under Section 158BD was initiated within a reasonable time and the same was completed within the statutory period of 2 years as contemplated under Section 158BE(2)(b) - set aside the orders of the Tribunal and restore the appeals back to the files of the Tribunal - in favour of revenue.
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