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2014 (9) TMI 134 - HC - Income TaxValidity of block assessment u/s 158BD – Satisfaction note recorded after passing block assessment order u/s 158BC – Held that:- The reasoning and ratio of the Tribunal is contrary to the law as decided in Commissioner of Income Tax-III versus Calcutta Knitwears, Ludhiana [2014 (4) TMI 33 - SUPREME COURT] wherein the relevant provisions of Chapter XIV-B of the Act were considered and it has been held that Section 158BD was a machinery provision inserted in the statute for the purpose of carrying out assessment of persons other than the searched persons - a satisfaction note regarding undisclosed income belonging to another person must be recorded, but the satisfaction note need not be recorded before the block assessment order was passed in the case of the person searched - There was nothing in the language of the provisions, which suggested that the satisfaction note cannot be recorded upon completion of the proceedings u/s 158BC of the Act against the “searched person” - Tribunal was not correct in holding that the block assessment proceedings were barred and invalid because the satisfaction note was not recorded by the AO before he had passed the block assessment order u/s 158BC in the case of the person searched – Decided in favour of revenue.
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