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2014 (12) TMI 1396 - KARNATAKA HIGH COURTValidity of block assessment u/s 158BD - Whether notice issued u/s 158BD does not satisfy the requirements of law on the ground that Assessing Officer has recorded satisfaction after completion of the block assessment under Section 158BC in the case of the person search? - tribunal has held that the satisfaction note has been recorded after the expiry of time limit under Section 158 BE in the case of the search person and therefore the notice issued under Section 158 BD is not validly issued - HELD THAT:- In the instant case, the assessment year in the case of search as was made on 28.03.2003. The notice under Section 158BD is issued on 09.07.2003. The satisfaction note is prior to the date of issue of notice. But certainly, not either on the day the assessment order was passed in the case of searched person or before 31.03.2003. As held by the Apex Court in the aforesaid judgment the satisfaction note has to be prepared immediately after the assessment proceedings are completed under Section 158BC of the Act of the searched person. Therefore on the ground that such a note was not prepared either at the time when the order was issued under Section 158BD or before 31.03.2003, the proceedings initiated under Section 158BD cannot be held valid. What remains is the question of word “immediately” used in the aforesaid provision. However in the instant case we do not propose to go into the said question because the order passed by the tribunal has to be sustained on the ground that satisfaction has not been recorded in the case of the searched person. Admittedly, in this case the satisfaction note is prepared in the case of the assessee itself. It ought to have been prepared in the case of the person searched. Therefore the entire initiation of proceedings under Section 158BD is vitiated. In that view of the matter the order passed by the tribunal confirming the order of the appellate authority cannot be found fault with.
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