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TMI Blog2010 (10) TMI 1119X X X X Extracts X X X X X X X X Extracts X X X X ..... ly covered in favour of the assessee by the order of ITAT, in the case of Vimal Vadilal Shah Ors [ 2010 (5) TMI 889 - ITAT AHMEDABAD] following the decision of Special Bench in the case of Manoj Agarwal [ 2008 (7) TMI 446 - ITAT DELHI-A] held that without there being satisfaction recorded prior to completion of assessment of the person searched proceedings so initiated u/s 158BD will not be valid. we hold that the block assessment framed in case assessee are not legally valid and therefore are quashed for the reason that notices u/s 158BD were issued in these cases long after completion of assessment in the case of person searched i.e. Ohm Developers. An identical matter was considered by this Court, CIT v. Mridula, Prop. M/s Dhruv F ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... facts and in circumstances of the case as well as law on the subject, the learned Commissioner of Income Tax (Appeals) has erred in confirming the action of the Assessing Officer in taking action u/s 158BD of the Act. 2. On the facts and in circumstances of the case as well as law on the subject, the learned Commissioner of Income Tax (Appeals) has erred in confirming the action of the Assessing Officer in taking action u/s 158BD of the Act after lapse of about 5 years. 3. On the facts and in circumstances of the case as well as law on the subject, the learned Commissioner of Income Tax (Appeals) has erred in partly confirming the addition of ₹ 3,46,000/- out of addition of ₹ 6,61,000/- made by Assessing Officer for alleg ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Bench D in the group cases of Vimal Vadilal Shah Ors in IT(SS)A. No10 28/Ahd/2008 Ors order dated 21-05-2010 whereby, in the group cases relating to M/s Ohm Developers proceedings u/s 158BD have been quashed. Learned counsel for the assessee, therefore, submitted that the proceedings against the assessee may also be quashed accordingly. On the other hand, ld.DR relied upon the orders of authorities below. 6. On consideration of the rival submissions, we are of the view that the issue is squarely covered in favour of the assessee by the order of ITAT, Ahmedabad Bench D (Camp at Surat) in the case of Vimal Vadilal Shah Ors (supra) in which the Tribunal at paragraph 11 of the order held as under:- 11. In E.J. Ulahanna v. ACI ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 7 We may also point out that recently the Hon ble Punjab Haryana High Court in its unreported judgment in ITA No. 379 of 2010 dated 25-08-2010 in the case of CIT-I, Ludhiana vs M/s Parveen Fabrics Pvt Ltd dismissed the appeal filed by the department by passing the following order: 1. This appeal has been preferred by the revenue under Section 260A of the Income Tax Act, 1961 (in short the Act ) against the order of the Income Tax Appellate Tribunal, Chandigarh Bench (B), Chandigarh (Hereinafter referred to as the Tribunal ) passed in I.T.(SS)A. No19/CHAND/2009 dated 127.8.2009 for the block period 01.04..1996 to 05.02.2003, proposing to raise the following substantial question of law:- Whether on the facts and in law, the Hon bl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f proceedings under Section 158BD of the Act or for recording of satisfaction before taking action under that provision. The plain and reasonable construction that can be placed on the aforesaid provision would be that the recording of satisfaction for taking action against any other person under Section 158BD of the Act has to be between initiation of proceedings under section 158BC and before completion of block assessment under Section 158BC of the Act in the case of the person searched I would, thus, mean that the action contemplated under Section 158BD of the Act against a third party to a search, is necessarily to be during the course of block assessment proceedings under Section 158BC of the searched person. It cannot be after the co ..... X X X X Extracts X X X X X X X X Extracts X X X X
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