2014 (12) TMI 1396

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..... s correct in holding that the notice issued under Section 158BD does not satisfy the requirements of law on the ground that Assessing Officer has recorded satisfaction after completion of the block assessment under Section 158BC in the case of the person search? 2. Whether the Tribunal was correct in holding that satisfaction under Section 158BD should be recorded before completion of the block assessment under Section 158BC in the case of the person search in order to initiate proceedings under Section 158BD against the person other than, searched without noticing that Section 158BD has not stipulated any limitation and pendency of block assessment proceedings for recording satisfaction?" 3. We have heard the learned counsel for the p .....

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..... nt of a searched person under Section 158BC of the Act or during the stage of the assessment proceedings. It does not mean that after completion of the assessment, the assessing officer cannot prepare the satisfaction note to the effect that there exists income tax belonging to any person other than the searched person in respect of whom a search was made under Section 132 or requisition of books of accounts were made under Section 132A of the Act. The language of the provision is clear and unambiguous,. The legislature has not imposed any embargo on the assessing officer in respect of the stage of proceedings during which the satisfaction is to be reached and recorded in respect of the person other than the searched person. Para 44: .....

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..... wever in the instant case we do not propose to go into the said question because the order passed by the tribunal has to be sustained on the ground that satisfaction has not been recorded in the case of the searched person. 8. Admittedly, in this case the satisfaction note is prepared in the case of the assessee itself. It ought to have been prepared in the case of the person searched. Therefore the entire initiation of proceedings under Section 158BD is vitiated. In that view of the matter the order passed by the tribunal confirming the order of the appellate authority cannot be found fault with. In the circumstances, without answering the substantial questions of law raised in this appeal, the appeal stands dismissed.
Case laws, Dec .....

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