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Issues:
Validity of assessment under section 158BC of the Income-tax Act, 1961 based on search and seizure conditions. Analysis: The appeal was against the order of the Commissioner of Income-tax (Appeals) for the block period 1-4-1986 to 6-2-1997. An additional ground was admitted regarding the legality of the assessment under section 158BC of the Income-tax Act, 1961. The appellant argued that no search was conducted in their case, nor were any books of account or assets requisitioned under section 132A. The appellant contended that the assessment was invalid as the necessary conditions under section 158BC were not met. The Departmental Representative countered with a letter stating that the warrant only mentioned one individual's name, not the appellant's. The Tribunal examined the arguments and precedents cited by both parties. The Tribunal found that there was no warrant in the appellant's name, and no evidence of a search or requisition of documents in their case. The warrant mentioned only the name of a different individual, not the appellant. The Tribunal considered the provisions of section 158BC, which require the essential conditions of a search under section 132 or requisition of documents under section 132A to be met for initiating proceedings. As these conditions were not satisfied in the appellant's case, the Tribunal concluded that the notice issued for assessment under section 158BC was illegal. Consequently, the assessment was deemed unlawful and annulled. The Tribunal did not address other grounds raised by the appellant on merit due to the annulment of the assessment. In conclusion, the Tribunal allowed the appellant's appeal, ruling in their favor based on the lack of legal basis for the assessment under section 158BC. The Tribunal quashed the notice issued and annulled the assessment as it did not meet the necessary conditions mandated by the Income-tax Act, 1961.
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