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2015 (11) TMI 412 - HC - Income TaxValidity of notice under Section 158-BD - Whether recording of satisfaction by the Assessing Officer of the person searched is a necessary ingredient to validate block assessment proceedings under Section 158-BD? - Held that:- In the present case, as already noticed, the Revenue has been unable to produce the satisfaction note of the AO of the searched person, to the effect that there was "cogent and demonstrative" material to conclude that the seized documents showed undisclosed income belonging to the Assessee. The absence of such satisfaction note on the file also explains why the AO resorted to Section 147 of the Act to reopen the assessment in the first place instead of issuing notice under Section 158 BD of the Act. Consequently, on this short ground of there being no satisfaction note, which is a mandatory requirement under Section 158 BD of the Act, as explained by the Supreme Court in Commissioner of Income-Tax v. Calcutta Knitwears (2014 (4) TMI 33 - SUPREME COURT), the entire block assessment proceedings are held to be bad in law. In the circumstances of the present case, the notice under Section 158-BD issued to the Assessee is held to be bad in law. - Decided in favour of assessee.
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