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2007 (9) TMI 296 - AT - Income TaxValidity of the block assessment order - Search And Seizure - pre-requisite condition for completing the assessment u/s 158BD - Notice u/s 143(2) - HELD THAT:- From the order of learned first appellate authority it is clear that even before him the Department could not produce the satisfaction recorded by the AO in the case of person searched. From the said order it is also clear that intimation regarding undisclosed income of the assessee was given to the AO of the present assessee after the issuance of notice. Thus, on facts the argument of the learned counsel for the assessee have remained uncontroverted. So far as the legal position is concerned, in the case of Manish Maheshwari [2007 (2) TMI 148 - SUPREME COURT], the Hon'ble Supreme Court has held that satisfaction is a pre-requisite condition for completing the assessment u/s 158BD. The ld DR has not been able to cite any authority, contrary to the decisions referred. Hence, we hold that the assessment order passed in the instant cases without making compliance of the pre-requisite condition i. e., recording of satisfaction, cannot be legally justified. Hence on this basis itself the assessment is liable to be quashed. We, accordingly, quash the assessment order. Time limitation for issuance of Notice u/s 143(2) - In view of the authority, the Tribunal Delhi Bench in the case of Smt. Tulika Mishra (to which both of us were parties)[2007 (3) TMI 747 - ITAT DELHI], has quashed the assessment order on the ground that the notice u/s 143(2) was not served upon the assessee within the prescribed period. On this ground we have held the assessment order to be null and void in that case. Hence following the same decision, we declare the assessment order as null and void in this case also because notice u/s 143(2) was not served upon the assessee within the prescribed period. Hence on this ground also the assessment order is liable to be quashed. The same is accordingly quashed. Thus, the legal grounds taken in the cross-objection stand allowed - Since we have quashed the assessment order by allowing legal grounds raised by the assessee, we are not required to consider other grounds raised in the cross-objection. In the result, appeal of the Revenue stands dismissed and the cross-objection of the assessee is allowed.
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