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2019 (7) TMI 15 - AT - Income TaxBlock assessment u/s 158BD - compliance of the provision u/s 127 by not issuing notice intimating the assessee regarding transfer of jurisdiction - recording of satisfaction by concern AO or any other AO - HELD THAT:- This is the settled principle of law that the notice u/s 158BD r.w.s. 158BC is required to be issued only upon being specified that the undisclosed income belongs to the appellant only by the concerned AO and not by any other authority having the same rank. The judgment as discussed above in the matter of ACIT-vs-Hotel Blue Moon [2010 (2) TMI 1 - SUPREME COURT] reiterates the same principle. Section 158BD further provides the books of account or other incriminating documents or assets ceased or requisitioned u/s 132A shall be handed over to the Assessing Officer having jurisdiction of such other person. In the instant case, the same was also not complied with by the statutory authorities. The entire proceeding has been initiated by the authorities by not applying the provision u/s 127 by not issuing notice intimating the assessee regarding transfer of jurisdiction of the Learned AO and further by not applying the provision of Section 158BC r.w.s. 158 BD by not recording the satisfaction by the jurisdictional AO. In that view of the matter, we find when the very foundation of the block assessment is not stable in the absence of compliance of the statutory provisions as discussed above, the entire proceeding initiated against the assessee is vitiated. Upon considering all the aspect of the matter, we find no merit in the order passed by the authorities below. Further that on the basis of the above discussion and observation we find the entire proceeding is void ab initio i.e. invalid from the very outset and therefore is liable to be quashed and hence the entire proceeding under section 158BD of the Act as initiated by the revenue against the assessee is hereby quashed. - Decided in favour of assessee.
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