Block assessment jurisdiction fails where no search or requisition exists against the assessee, rendering section 158BC invalid.

Block assessment under Chapter XIV-B can be initiated only where the statutory foundation of a search under section 132 or a requisition under section 132A exists in relation to the assessee. As no warrant was issued in the assessee's name, no search material was shown against her, and the satisfaction note related only to another person and family members, the jurisdictional preconditions for section 158BC were absent. The notice issued for block assessment could not be sustained, and the assessment was annulled as without legal authority.

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Issues: Whether block assessment proceedings under section 158BC were valid where no search was conducted in the assessee's case and no requisition under section 132A was made against the assessee.

Analysis: Proceedings under Chapter XIV-B could be initiated only if the statutory conditions of a search under section 132 or requisition of books of account, documents or assets under section 132A were satisfied in relation to the assessee. The record showed that no warrant existed in the assessee's name, no material was produced to establish a search against her, and the satisfaction note referred only to the residence and clinic of another person and family members. In these circumstances, the essential jurisdictional preconditions for action under section 158BC were absent, and the notice issued for assessment under section 158BC read with section 143(3) could not be sustained.

Conclusion: The block assessment was without legal authority and was annulled, in favour of the assessee.

Final Conclusion: The appeal succeeded because the absence of a search or requisition against the assessee deprived the revenue of jurisdiction to invoke block assessment proceedings.

Ratio Decidendi: Initiation of block assessment under section 158BC is permissible only when the statutory foundation of a search under section 132 or requisition under section 132A exists in relation to the assessee; absent that foundation, the assessment is void.

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