Home Case Index All Cases Income Tax Income Tax + HC Income Tax - 2024 (2) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2024 (2) TMI 752 - HC - Income TaxBlock assessment - Validity of assessment u/s 158BD when record did not show that any satisfaction was recorded nor any notice was issued under the said provision r.w.s.158BC - HELD THAT:- Under Section 158BD, the existence of cogent and demonstrative material is germane to the Assessing Officer’s satisfaction for initiation of action u/s 158BD in concluding that the seized documents belong to a person other than the searched person is necessary for initiating action u/s 158BD. For the purpose of Section 158BD of the Act, a satisfaction note is sine qua non and must be prepared by the Assessing Officer who has jurisdiction over such other person. Since as per admitted case of the assessee, AO has not prepared a satisfaction note either before or along with or even after the assessment proceedings as mandatorily required u/s 158BD, therefore, the entire proceedings initiated by the AO to pass the assessment order u/s 158BC, is patently illegal, particularly when the entire facts and evidences in the form of seizure of books of account including cash book, statement of the appellant assessee and Sri J.M. Kothari u/s 131, statement of parties who made the payment to the entities of the appellant assessee recorded u/s 131 and the letters of Sri J.M. Kothari and the appellant assessee evidencing sufficient explanation regarding cash seized to be belonging to the aforesaid entities and reflected in their cash book were well available on record. Thus impugned order relating to block assessment u/s 158BC(c) passed cannot be sustained and is hereby set aside. Decided in favour of assessee.
|