TaxTMI 
TaxTMI 
2011 (5) TMI 464
X X X X Extracts X X X X
X X X X Extracts X X X X
....1 (for short "the Act"). 2. We have heard learned counsel, Mr. G. P. Mehta, appearing on behalf of the assessee as well as the learned Departmental representative, Mrs. Kusum Ingale. 3. The short point for our adjudication in this appeal is, whether or not the notice issued under section 158BD of the Income-tax Act, 1961 (for short "the Act"), is bad in law. 4. We first examine the dates and events, which are enumerated below : Date of search 4-8-2000 Notice under section 158BC issued on 16-2-2001 Return of Income for the block period filed under protest on 2-7-2002 Assessment order under section 158BC on 27-9-2002 The Commissioner of Income-tax (Appeals) passed the order cancelling the assessment on 25-3-2003 Appeal filed bef....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ore, this is a fit case for issue of notice under section 158BD on the Act. The Assessing Officer, should carefully record reasons as to his satisfaction that the undisclosed income, detected based on the search carried out in respect of the assessee in his individual status, belongs to the Hindu undivided family, and issue notice under section 158BD of the Act and complete the assessment expeditiously. A report as to the issue of notice under section 158BD should be sent within 10 days." 6. In pursuance of this review order dated December 8, 2003, passed by the Commissioner of Income-tax, the Assessing Officer issued notice dated December 22, 2003, under section 158BD of the Act. The order under section 158BC read with section 158BD, in t....
X X X X Extracts X X X X
X X X X Extracts X X X X
....l, wherein it is held as follows : "Held : Section 158BD provides for assumption of jurisdiction to make a block assessment in the case of a person not searched and against whom no proceedings have till then been initiated. Can it be said that such jurisdiction can be assumed without recording satisfaction ? Not so. It has to be noted that the proceedings under section 158BC are against the person searched and if in the course of such proceeding the Assessing Officer assessing the person searched comes across material indicating the presence of undisclosed income in the hands of the person not searched, there has to be a provision for making a similar assessment in the case of the other person. As section 158BC relates to a person searched....
X X X X Extracts X X X X
X X X X Extracts X X X X
....atisfaction' or the 'record of satisfaction', as one may call it. In such circumstance, the recording of such satisfaction is impliedly to be done in the course of the section 158BC proceeding as the satisfaction has to be recorded only by the Assessing Officer making the block assessment in the case of the person searched which in turn means the section 158BC proceedings. Such satisfaction cannot be recorded beyond the date of the block assessment in section 158BC proceeding and the date of the block assessment is the outer limit for recording such satisfaction. This is for the reason that the satisfaction has to be recorded by the Assessing Officer examining the material in the case of the person searched and he will have to find out whet....