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TMI Blog2015 (11) TMI 432X X X X Extracts X X X X X X X X Extracts X X X X ..... dated 17.7.2008, Annexure A.III passed by the Income Tax Appellate Tribunal, Delhi Bench 'E', New Delhi in IT (SS) Nos.94/D/2005 for the block period ending 1987-88 to 1997-98, claiming following substantial questions of law:- "i) Whether, on the facts and in the circumstances of the case, the learned ITAT is right in law in quashing the assessment made under section 158BC of the Income Tax Act, 1961 read with section 158BD of the Income Tax Act, 1961 by ignoring the findings of learned CIT(A) recorded in para 5 of her appellate order regarding recording of proper reasons and satisfaction before issue of notice under section 158BD of the Income Tax Act, 1961 which clearly established that the Assessing Officer was well within his ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tly allowed the appeal upholding the proceedings initiated under section 158BD, order under sections 158BC and 158BD of the Act and addition of Rs. 30,37,272/- on account of amount spent by the assessee in the purchase of agricultural land. However, disallowance on account of investment of a sum of Rs. 98,40,000/- made by the assessee in the residential house was restricted to 50% i.e. Rs. 49,20,000/-. Not satisfied with the order, both the appellant and the revenue filed appeals before the Tribunal. Vide order dated 17.7.2008, Annexure A.III, the Tribunal dismissed the appeal of the revenue and allowed that of the assessee. It was held that since the Assessing Officer in the case of Shri Mangal Singh, father of the assessee, the person sea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Apex Court held as under:- "The condition precedent for invoking a block assessment is that a search has been conducted under section 132, or documents or assets have been requisitioned under section 132A. The said provision would apply in the case of any person in respect of whom search has been carried out under section 132A or documents or assets have been requisitioned under section 132A. Section 158BD, however, provides for taking recourse to a person, the conditions precedent wherefor are (i) satisfaction must be recorded by the Assessing Officer that any undisclosed income belongs to any person, other than the person with respect to whom search was made under section 132 of the Act; (ii) the books of account or other documents ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ction recorded by the Assessing Officer in the case of the assessee on 24.8.2001 before issuing notice under section 158BD on 4.8.2001 cannot be called to be legally valid requisite satisfaction as contemplated under section 158BD. The consequence of the same is that the instant assessment framed in the case of the assessee Shri Ajay Singh has been made without recording the mandatory condition of recording satisfaction precedent of section 158BD. Accordingly the assessment framed under Section 158BC/158BD in the instant case is hereby quashed.". 8. Learned counsel for he appellant has not been able to show any illegality or perversity in the findings recorded by the Tribunal. Consequently, the substantial questions of law as claimed are a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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