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2017 (2) TMI 743 - HC - Income TaxInitiation of proceedings u/s 158BD without jurisdiction - Held that:- From the record, it seems that the finding arrived at by the CIT (Appeals) was not challenged. Assuming but without admitting, even if the same was challenged, the same was not reversed by the Tribunal in its order. In that view of the matter, in our view, unless the finding of the CIT (Appeals) was held to be bad in law and reversed by the Tribunal in appeal, the consequential order is erroneous and the same could not have been done in appeal preferred by both the sides. The Tribunal has to quash and set aside the conclusion arrived at by the CIT (Appeals) holding that the proceedings under Section 158BD is bad in law which is never reversed by the Tribunal. In that view of the matter, unless the basic finding is held to be valid, the consequential order, in our opinion, is bad in law. Therefore, the issue no.2 is answered in favour of the assessee and against the department. Whether the Tribunal had material and was right in law in holding that the total income assessed in the hands of the society in the block return as well as regular return is to be assessed in the hands of Shri Khan and Shri Vijay at the ratio 51% and 49% respectively, since there was no notice served under section 158 BC, in that view of the matter also the assessee could not have been assessed under section 158BD of the Act. Decided in favour of the assessee and against the department.
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