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2015 (9) TMI 901 - AT - Income TaxValidity of assessment under Section 158BD - Determination of total undisclosed income - Held that:- The satisfaction note was recorded by the Assessing Officer of the appellant instead of Assessing Officer of searched person. Therefore, it has to be inferred that no satisfaction note was recorded, as per the law laid down by in the case of Manish Maheshwari Vs. CIT, [2007 (2) TMI 148 - SUPREME COURT OF INDIA]. Furthermore, the assessment in the case of searched person i.e. Mr. Manoj Kumar Aggarwal, completed on 29th August, 2002 and the notice under Section 158BD in this case was issued on 15th April, 2004 that is nearly after lapse of two years and two months. The Hon’ble Apex Court in the case of CIT Vs. Calcutta Knitwears, [2014 (4) TMI 33 - SUPREME COURT] held that the recording of satisfaction on the issue of notice under Section 158BD should be done (a) at the time or along with the initiation of proceedings against the searched person under Section 158BC of the Act, (b) along with the assessment proceeding under Section 158BC of the Act, and (c) immediately after assessment proceedings are completed under Section 158BC of the Act of the searched person. The period of limitation prescribed under Section 158BC cannot be extended by issuing the belated notice under Section 158BD. The Hon’ble Jurisdictional High Court in the case of CIT Vs. Bharat Bhushan, [2015 (1) TMI 705 - DELHI HIGH COURT] held that having regard to the intent of the Hon’ble Supreme Court in Calcutta Knitwears, [2014 (4) TMI 33 - SUPREME COURT], the completion of assessment under Section 158BD of the Act nearly after one year, cannot be considered contemporaneous to the assessment proceedings of searched persons. Therefore, the Hon’ble High Court held that the delay in completion of assessment under Section 158BD vitiates the very proceedings itself. Applying the same ratio in this case, the assessment proceedings cannot be sustained in the eyes of law on this score alone - Decided in favour of assessee.
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