2010 (12) TMI 1241

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....arch was carried out on 29.10.1999 and in the search certain documents were found showing that the assessee had purchased flat No. A-105 in Yogi Complex and had paid on-money. In order to tax the on-money, the Assessing Officer first carried out some preliminary enquiries and then finally issued notice under section 158BD to the assessee on 10.06.2004 for the block assessment year 1990-91 to 1999-2000 and from 1.4.1999 to 29.10.1999 requiring the assessee to file the return of income for the block period within 45 days. Thereafter the Assessing Officer framed the assessment under section 158BD read with section 158BC on 29.03.2006, wherein he assessed the undisclosed income of Rs. 2,25,000/- being the payment made for acquisition of the afo....

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....s of a third party. 4. After considering the aforesaid submissions, in the impugned order the Learned Commissioner of Income Tax (Appeals) held that only time gap between the proceedings initiated under section 158BC in the case of M/s. Ohm Developers and M/s. Ohm Organizers and the issue of notice to the assessee, was utilized by the Department in making the necessary inquiries with the persons whose names and accounts appeared in the books of the persons searched, before satisfying themselves that the cases were fit for being proceeded against under the provisions of section 158BD of the Act. Therefore, there was not any unusual delay to invalidate the proceedings initiated and in fact, the notice was issued within a reasonable time. ....

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....ers in IT(SS)A Nos. 10 & 28/AHD/2008, notice under section 158BD cannot be issued after the closure of block assessment proceedings in the case of person search from which the proceedings under section 158BD of the Act against the assessee, were initiated. He submitted that on this basis alone, the assessment framed by the Assessing Officer be quashed. 7. On the other hand, Smt. Shalini Verma, ld. Sr. D.R. appearing on behalf of the Revenue could not controvert the aforesaid submissions made by the ld. counsel of the assessee. 8. We have carefully gone through the orders of authorities below. In this case, search under section 132 of the Act was carried out in the business premises of M/s. Ohm Organizers, Surat on 29.10.1999. Certain ....

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....TD 311 (Lucknow) that proceedings U/S.158BD can be initiated on the satisfaction of the Assessing Officer having jurisdiction over person searched to tax undisclosed Income-tax pertaining to third person who is not subjected to search and books of accounts and in other documents were handed over to the Assessing Officer having jurisdiction over such third person but proceedings initiated u/s.l58BD of the Act after a period of six years cannot be regarded as valid. 11. In E.J. Ulahanna v. ACIT in ITA No. 19/Ahd/2007 pronounced on 18-03- 2009, following the decision of Special Bench in the case of Manoj Agarwal (supra) held that without there being satisfaction recorded prior to completion of assessment of the person searched proceed....