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2009 (12) TMI 987 - ITAT AHMEDABADBlock assessment proceedings u/s 158BD - period of limitation - Undisclosed income of another person u/s 158BD - HELD THAT:- The time limit set in sec. 158BE automatically applies for invoking the provisions of sec. 158BD. Legislature did not find it necessary to specify the separate time limit for the same, as the enactment itself shows that both section 158BC and 158BD are inter-linked, inter-laced, interwined and both form part and parcel of the same Chapter. Respectfully following the decision of Manoj Agarwal’s case[2008 (7) TMI 446 - ITAT DELHI-A], we hold that the notice dated 19.4.2004 issued u/s 158BD is time barred and, therefore, the assessment framed on 27.2.2006 u/s 158BD read with sec. 158BC is without jurisdiction and void ab initio. Accordingly, we quash the assessment order dated 27.2.2006 framed u/s 158BD read with section 158BC. Where material found in search is glaringly apparent that it belongs to a third person other then the person searched, then no specific satisfaction is required to be recorded and therefore, it is not necessary to issue notice under section 158BD before the closure of the assessment of the person searched. It is for the AO to decide while examining the ceased material that it belongs to the person searched or to a third person. Whether such distinction is glaring or not is not material as legal requirement is that of satisfaction of the AO which cannot be done away with. Accordingly, the principles laid down in the two cases i.e. Manish Maheshwari’s case [2007 (2) TMI 148 - SUPREME COURT] and Manoj Agarwal’s case would have to be followed. All the points raised by the ld. DR have been considered in Manoj Agarwal’s case and therefore are not required to be separately considered. Thus, respectfully following the decision in Manoj Agarwal’s case [2008 (7) TMI 446 - ITAT DELHI-A] as well as Kuntesh Bhupatrai Desai’s case, we cancel the assessment and allow the appeal of the assessee. Appeal of the assessee is allowed.
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