TMI Blog2002 (12) TMI 228X X X X Extracts X X X X X X X X Extracts X X X X ..... se of Ahuja group of assessees. During search operation, certain incriminating documents were found relating to M/s. A.L. Ahuja HUF, the assessee before us, in respect of sale of flats in DDA, 22 Kalkaji; New Delhi, investment in M-107 Greater Kailash, Part-I, New Delhi; and in plot No. 203/15-I, HUDA Gurgaon. The AO called upon the assessee to file return by serving a notice issued under section 158BC/BD for block assessment years 1986-87 to 1996-97. The assessee filed return declaring undisclosed income at Nil. The assessment was completed at an undisclosed income of Rs. 73,48,800 against which the present appeal has been preferred by the assessee. 3. The learned counsel for the assessee has raised several legal pleas and the first ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rch warrant in the name of Karta Shri R.P. Monga and as such the impugned order prepared under section 158BC was not proper and valid. The Bench also observed in the aforesaid case that it could have been a case for invoking the provisions of section 158BD of the Act but there was no trace of the fact that provisions of section 158BD of the Act had been invoked in the said case. 3.1. Next plea of the learned counsel is that assessee-HUF was being assessed by ITO Ward 11(5) which is not disputed by the Department and first notice for assessment of the block period was issued on 15-10-1996 by DCIT Special Range-35 as is evident from copy of that notice appearing at page 26 of the paper book. The contention of the learned counsel is the DC ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... satisfaction, the learned counsel has placed reliance on Tribunal s order in the case of Ved Parkash Sanjay Kumar v. Asstt. CIT [2001] 76 ITD 107 (Chg.). Reliance was also placed on Tribunal s order in case of Chhabria Mktg. Ltd. v. Dy. CIT [2002] 81 ITD 314 (Mum.). On the basis of these facts the learned counsel submitted that assessment framed by AO is liable to be quashed as the same is void ab initio and invalid. 4. Learned D.R. relied upon the assessment order and submitted that search was conducted in group of Ahuja and A.L. Ahuja HUF is also included in the group of Ahuja. Learned D.R. next contended that the plea of the assessee that DCIT Special Range-35 had no jurisdiction over the assessee to issue notice under ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ses irrespective of the fact that same AO having jurisdiction over the assessee as he is discharging the duties in dual capacity and he has to record satisfaction under section 158BD in the case of assessee who is searched so that he can proceed on the basis of that satisfaction in the case of another assessee who is outside the purview of section 158BC. 6. We have considered the rival submissions and perused the record carefully. After going through the record and considering the arguments of the learned representatives of the parties it is to be noted that search warrant was not admittedly in the name of assessee. The learned D.R. has not been able to bring anything on record to show that A.L. Ahuja HUF was one of the assessee against ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o issued notice viz. DCIT Special Range-35 was having no jurisdiction over assessee-HUF and thus the assessment is liable to go and as it is purely legal plea and goes to the very root of the matter, it could not be waived and could be allowed to raise at any stage. So, assessment framed in pursuance to invalid notice is liable to be quashed. 6.2 Apart from it, it is also to be seen that notice dated 15-10-1996 specifically shows that it was under section 158BC of the Act but assessment has been completed under section 158BC/BD of the Act. For proceedings under section 158BD of the Act, the requirement as laid down in the case relied upon by the learned counsel is that AO who is seized with the search matters should record his satisfa ..... X X X X Extracts X X X X X X X X Extracts X X X X
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