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2014 (4) TMI 205 - AT - Income TaxAssessment u/s.158BD - recording of necessary satisfaction - period of limitation for issuance of notice - Held that:- CIT(A) has decided issue in a causal manner without referring to facts of case - CIT(A) has not given any finding on submission of assessee that satisfaction was recorded by AO of searched party in respect of company but not in respect of Appellant - CIT(A) failed to appreciate fact that company is having distinct entity - Even if Revenue wanted to proceed against appellant, AO of searched party should have recorded his statement - Under facts and circumstances of present case, satisfaction as recorded by the AO is not valid in view of fact that satisfaction has been recorded by AO other than AO of searched party - Ratio laid down by Jurisdictional High Court in case of Chandrakantbhai Amratlal Thakkar vs. Dy.CIT & Anr [2011 (4) TMI 582 - Gujarat High Court] would apply – Assessment made is required to be quashed on this basis alone - Decided in favour of Assessee. Limitation for notice u/s 158BD – Held that:- Search was conducted on 27/04/2000 and notice was issued u/s.158BD on 29/03/2006, i.e. after a lapse of nearly six years - Proceedings are required to be initiated within a reasonable time even if there is no limitation is provided - As per section 158BE(1) of Act, order u/s.158BC is required to be passed within 2 years from end of month in which last of authorizations for search under section 132 was executed - In respect of assessment made u/s.158BD of Act, two years from end of month in which notice under this Chapter was served on such other person - However, there is no limitation for issuing a notice u/s.158BD is provided under Act, but this cannot be construed as proceedings can be initiated even after lapse of many years or after indefinite period – Decided in favour of Assessee.
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