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of <h1>High Court upholds Tribunal's decision to quash assessments under Section 158 BC. Survey material deemed invalid.</h1> <h3>Commissioner of Income Tax, Valsad Versus Parmar Builders & Developers</h3> Commissioner of Income Tax, Valsad Versus Parmar Builders & Developers - TMI Issues:Validity of assessment proceedings under Section 158 BC of the Income Tax Act based on material collected during a survey action.Analysis:Issue 1: Validity of Assessment Proceedings under Section 158 BC:The appeals arose from a common judgment by the Income Tax Appellate Tribunal, which set aside the assessments for block assessment periods due to the use of material collected during a survey for making additions. The Revenue challenged this decision, raising substantial questions of law regarding the validity of the assessment. The Tribunal allowed the appeals by quashing the assessments made under Section 158 BC of the Act.Issue 2: Material Used for Assessment:The assessee, a partnership firm in civil construction, faced assessment proceedings after a search/survey at their office premises. The Assessing Officer (AO) made additions to the undisclosed income based on the seized material. The CIT(A) partially allowed the appeal, reducing the additions made by the AO. However, the assessee contended that the material used for additions was collected during the survey and not a search under Section 132 of the Act, challenging the validity of the assessment proceedings under Section 158 BC.Issue 3: Judicial Review and Decision:The High Court reviewed the Tribunal's judgment and the orders passed by the AO and CIT(A). After examining the appraisal report, it was confirmed that the material used for the assessment under Section 158 BC was gathered during a survey and not a search under Section 132. The Court upheld the Tribunal's decision to set aside the assessments, concluding that no error was made in holding the assessment proceedings invalid. Consequently, the appeals were dismissed, affirming the Tribunal's view.In conclusion, the High Court upheld the decision of the Tribunal to quash the assessments under Section 158 BC of the Income Tax Act, as the material used for additions was collected during a survey and not a search. The Court found no substantial question of law and dismissed the appeals, affirming the Tribunal's ruling.
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