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TMI Blog2012 (2) TMI 32X X X X Extracts X X X X X X X X Extracts X X X X ..... specially when the same Assessing Officer was also for the searched person and in the instant case and the notice was issued after recording the necessary satisfaction and in further holding the assessment so framed as null and void. 2. During hearing, the crux of arguments on behalf of the revenue by Shri Arun Dewan, learned Sr. DR, is in support to the assessment order by further submitting that the satisfaction was duly recorded by the Assessing Officer and the same Assessing Officer was of the searched person. Alternatively, it was contended that section 292BB of the Act is very clear, therefore, the notice issued u/s 143(2) of the Act is valid. 2.1 On the other hand, the learned counsel for the assessee, Shri Ashish Goyal, contended ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ingh, Village Choras 08.06.2001 4. Shri Devi Singh s/o Shri Mitilal Lodhi, Village Geruwa 08.08.2001 5. Shri Kalyan Singh s/o Motilal Lodhi, village Geruwa 26.07.2002 6. ShriSurendra Singh s/o Shri Kanhaiyalal Village Boras 05.07.2002 As per the revenue, the documents seized from the premises of Shri Shyam Kumar and Shri Ram Kumar Chandak revealed that the assessee entered into an agreement with Shri Babulal on 3.7.1997 for purchase of agricultural land for Rs. 1,30,000/- and one Shri Babulal received Rs. 1,20,000/- as advance from the assessee. In view of these documents, notice u/s 158BD of the Act was issued on 24.8.2006 as the Assessing Officer was of the opinion that the assessee made investment to acquire properties d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n the case of Malani & Chandak group. Nil undisclosed income was returned by the assessee on 12.10.2006 (paper book pages 21 to 28). Notice u/s 143(2) of the Act was issued to the assessee on 24.7.2008 (paper book page 29) after one year 9 months and 12 days from the date of filing of the block return and the order u/s 158BD of the Act was framed on 29.8.2008. The assessee has challenged these proceedings on three counts. (a) Assessment u/s 158BD of the Act was initiated after completion of proceedings u/s 158BC of the Act (b) Notice u/s 143(2) of the Act is beyond the period of limitation and (c) No proper satisfaction u/s 158BD of the Act was existing/recorded 3.2 We find that the learned Commissioner of Income Tax ( ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 12 months from the end of the month in which the return is furnished. However, in the present appeal, the notice could have been given only upto 31.10.2007 as on 1.4.2008 the limitation period had already expired. The issuance of notice u/s 143(2) of the Act is a mandatory requirement, therefore, non-service of notice would be fatal. Chapter XIV-B prescribes the special procedure for making the assessment of search cases and section 158B defines "undisclosed income" and "block period" which are the two basic factors for framing the assessment. Section 158BA is an enabling section, empowering the Assessing Officer, to assess "undisclosed income" as a result of search initiated or requisitioned made after June 30, 1995, in accordance with th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on 158BB and the provisions of section 142, sub-sections (2) and (3) of section 143, section 144 and section 145 shall, so far as may be, apply" An analysis of this sub-section indicates that, after the return is filed, this clause enables the Assessing Officer to complete the assessment by following the procedure like issuance of notice u/s 143(2)/142 and complete the assessment u/s 143(3) or as the case may be. This section does not provide for accepting the return as provided u/s 143(1)(a) of the Act. In case of default in not filing the return or not complying with the notice u/s 143(2)/142, the Assessing Officer is authorised to complete the assessment ex-parte u/s 144. Clause (b) of section 158BC by referring to section 143(2) and (3 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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