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2018 (11) TMI 1330 - KERALA HIGH COURTBlock assessment validity - AO justification in issuing notice u/s 158BC after a period of more than five years - reasonable period - assessment barred by limitation - whether the time for completion of assessment should have been calculated from the date of the direction of the appellate authority as alleged? - Held that:- It is true that there is no time limit fixed for issuance of notice under Section 158BD of the Act in respect of persons other than searched. But, the Tribunal was right in observing that it would not mean that the proceedings could be delayed unreasonably. Involvement of the sons of Raghunathan was already found by the AO, as is evident from Annexure-A order and it is on that basis that the first appellate authority had, at the first instance, vide Annexure-B order cancelled the assessment with a direction. It was, therefore, essential that the AO should have taken the proceedings under Section 158BD within a reasonable time, and a period of three years for issuance of notice and seven years for completing block assessment is definitely not a reasonable time. We find, absolutely, no illegality in the order of the Tribunal. The question of law is answered in favour of the assessee.
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