9911796707
TMI Blog2010 (7) TMI 718X X X X Extracts X X X X X X X X Extracts X X X X ..... block period April 1, 1996, to March 31, 2002 : "1. Whether, on the facts and in law, the hon'ble Income-tax Appellate Tribunal was justified in holding the recording of satisfaction under section 158BD by the Assessing Officer of the person searched and consequent issuance of notice under section 158BD on February 10, 2006, was belated and beyond the period prescribed by law when section 158BD read with section 158BE does not specify that satisfaction has to be recorded by the Assessing Officer before completion of assessment under section 158BC of the Income-tax Act, 1961, and no time limit has been provided for issue of notice under section 158BD of the Income-tax Act, 1961 ? 2. Whether, on the facts and in the circumstan ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ted the additions made by the Assessing Officer. 3. The Revenue thereafter preferred an appeal before the Tribunal whereby the assessee also filed cross-objections. The Tribunal, vide order dated April 23, 2009, allowed the cross-objections of the assessee but dismissed the appeal of the Revenue as having been rendered infructuous in view of the fact that the assessment stood cancelled after the cross-objections were allowed. While doing so, in so far as the validity of issuance of notice under section 158BD is concerned, the Tribunal has unequivocal terms observed that the realistic position in the case of the present assessee was in pari materia to the case of CIT v. Mridula, Prop. Dhruv Fabrics [2011] 335 ITR 266 (P&H) and, there ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... should record a finding that there was undisclosed income in such assets or books of account or documents of the searched person which belonged to the person other than the one searched. According to the plain reading of section 158BD ibid, the Assessing Officer, while framing assessment of an assessee under section 158BC of the Act against whom action has been taken under section 132 or 132A of the Act, is mandatorily required to record satisfaction before action can be initiated under section 158BD of the Act against such other person. In other words, the satisfaction by the Assessing Officer making assessment under section 158BC of the Act, in the case of the person searched, that there is certain undisclosed income as a result o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ock assessment proceedings under section 158BC of the searched person. It cannot be after the conclusion of the same as there is no occasion for an Assessing Officer to examine the seized material or documents of the searched person when the block assessment proceedings have concluded and no other proceedings are pending before him. If any other time limit is read in the provisions/statute, it shall lead to anomaly and would be arbitrary and unreasonable. It could not be read in the provision that where block assessment under section 158BC of the Act in the case of an assessee against whom action under section 132 or 132A of the Act had been carried out is finalised, the Revenue can take action at any time in the absence of any specific lim ..... X X X X Extracts X X X X X X X X Extracts X X X X
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