Section 158BD proceedings upheld where undisclosed income was linked to the petitioner's bank accounts and satisfaction existed.

Proceedings under Section 158BD were sustained because the Assessing Officer had a factual basis to be satisfied that the undisclosed income was attributable to the petitioner. The bank accounts stood in the petitioner's name, the source of funds was unexplained, and the husband's related proceedings were still pending in appeal, so the notice was not invalid merely because that assessment had not attained finality. The transfer of the file within the same locality for these proceedings was also found unobjectionable. The writ challenge therefore failed.

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Issues: Whether the notice issued under Section 158BD of the Income-tax Act, 1961, and the initiation of proceedings thereunder were invalid for want of jurisdiction or want of proper satisfaction that the undisclosed income belonged to the petitioner.

Analysis: The petitioner's challenge was founded on the contention that she was an independent assessee and that the assessing authority could not proceed against her without first recording satisfaction that the undisclosed income belonged to her. The Court noted that the bank accounts stood in the petitioner's name, that the source of the funds was not explained, and that the husband's proceedings were still pending in appeal. In those circumstances, the Court accepted the Revenue's stand that the Assessing Officer had the requisite satisfaction to proceed under the special procedure for block assessment and that the notice could not be faulted merely because the husband's assessment had not attained finality. The Court also found no infirmity in the transfer of the file within the same locality for the purpose of such proceedings.

Conclusion: The initiation of proceedings under Section 158BD was upheld and the writ petition failed.

Ratio Decidendi: A notice under Section 158BD is sustainable where the Assessing Officer has a factual basis to be satisfied that undisclosed income is attributable to the person proceeded against, particularly in pending protective assessment circumstances.

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