TaxTMI 
TaxTMI 
2010 (7) TMI 664
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....uary 5, 2003, in I.T.S.S. No. 19/CHANDI/2008 for the block period April 1, 1998, to February 5, 2003 : "Whether, on the facts and in law, the hon'ble Income-tax Appellate Tribunal was justified in holding the recording of satisfaction under section 158BD by the Assessing Officer of the person searched and consequent issuance of notice under section 158BD on September 2, 2005 was belated and beyond the period prescribed by law when section 158BD read with section 158BE does not specify that satisfaction has to be recorded by the Assessing Officer before completion of assessment under section 158BC of the Income-tax Act, 1961 ?" 2. Briefly, the facts may be noticed. The assessee, an individual, is carrying on business of manufacturing h....
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.... case of S. K. Bhatia's group was required to record his satisfaction that undisclosed income discovered, belonged to some person other than the person searched. The block assessment in the case of S. K. Bhatia's group was finalized under section 158BC on March 30, 2005, and the satisfaction recorded to initiate action under section 158BD of the Act against the assessee was on July 15, 2005, which was clearly beyond time envisaged by the aforesaid provisions. Hence, this appeal. 3. The point for consideration in this appeal is, whether initiation of proceedings under section 158BD of the Act, by recording satisfaction on July 15, 2005, and issuing a notice dated September 2, 2005, which was served on the assessee on September 8, 2....
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....orizations for search under section 132 or for requisition under section 132A, as the case may be, was executed in cases where a search is initiated or books of account or other documents or any assets are requisitioned after the 30th day of June, 1995, but before the 1st day of January, 1997 ; (b) within two years from the end of the month in which the last of the authorizations for search under section 132 or for requisition under section 132A, as the case may be, was executed in cases where a search is initiated or books of account or other documents or any assets are requisitioned on or after the 1st day of January, 1997. (2) The period of limitation for completion of block assessment in the case of the other person ....
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....ication is made and ending with the date on which the order under sub-section (1) of section 245D is received by the Commissioner under sub-section (2) of that section, shall be excluded : Provided that where immediately after the exclusion of the aforesaid period, the period of limitation referred to in subsection (1) or sub-section (2) available to the Assessing Officer for making an order under clause (c) of section 158BC is less than sixty days, such remaining period shall be extended to sixty days and the aforesaid period of limitation shall be deemed to be extended accordingly. Explanation 2.-For the removal of doubts, it is hereby declared that the authorization referred to in sub-section (1) shall be deemed to ha....
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....certain undisclosed income as a result of examination of seized material which belongs to some other identified person, is essential for assuming jurisdiction under section 158BD of the Act. The satisfaction required to be recorded is prima facie satisfaction and is not firm or conclusive satisfaction at that stage. 7. Section 158BE of the Act prescribes the time limit for framing of assessments under sections 158BC and 158BD of the Act. The Assessing Officer of the person against whom action under section 132 or 132A of the Act has been taken, is the Assessing Officer who initiates the proceedings under section 158BD of the Act by recording satisfaction that any undisclosed income belongs to such other person so as to take action....