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TMI Blog2018 (2) TMI 673X X X X Extracts X X X X X X X X Extracts X X X X ..... Further noticed that Section 158BE [2] (b) only provides for limitation for completion of block assessment under Section 158BD which is two years from the end of the month in which the notice for such purpose was served on such person, who happen to be other than the searched person. It was in this background the Supreme Court had culled out the ratio, as reproduced in para 44 of the judgment. Thus, even if such satisfaction note were to be recorded after completion of the proceedings under Section 158BC, the same has to be done immediately thereafter. The term 'immediately' has not been defined nor is it possible to quantify it in absolute terms. In any case, period close to nine months for completion of the proceedings under Section 158 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he Act for short] was passed against the searched person on 30th April 2003. Till this date, the Assessing Officer had not recorded any satisfaction on the basis of material on record that the assessment in the hands of the present assessee under Section 158BD of the Act ought to be carried out. Such satisfaction was recorded only on 20th January 2004. The Assessing Officer thereupon passed an order of assessment under Section 158BD of the Act on 17th April 2001 for the Block Period : AY 1992-1993 to AY 2001-2002. He made addition of ₹ 36.67 lacs in the hands of the assessee for the said period. The assessee carried the matter in appeal before the Commissioner with respect to the latter issue. The Commissioner [Appeals] opined as un ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the person other than the searched person in the context of provisions contained in Section 158BC and 158BD of the Act. The cases before the Supreme Court were such where the Tribunals and the High Courts had taken a view that any satisfaction recorded by the Assessing Officer after passing order under Section 158BC of the Act would not satisfy the requirements of law. The Supreme Court reversed such view and held that even after passing of the order under Section 158BC of the Act, it would be open for the Assessing Officer of the searched person to record a satisfaction for initiating proceedings under Section 158BD of the Act. The relevant observations of the Supreme Court in this regard were as under :- 43. In the lead case, the a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the records to the other assessing officer who has jurisdiction over such other person. The satisfaction note could be prepared at either of the following stages:(a) at the time of or along with the initiation of proceedings against the searched person under section 158BC of the Act; (b) along with the assessment proceedings under Section 158BC of the Act, and (c) immediately after the assessment proceedings are completed under Section 158BC of the Act of the searched person. It could be thus seen that while holding that provisions of law no where require that the satisfaction note must be recorded before the proceedings under Section 158BC are completed, it was further provided that such satisfaction note could be prepared at any of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hs for completion of the proceedings under Section 158BC of the Act, without there being any limiting factor on the Assessing Officer to have recorded satisfaction earlier, cannot be stated to be an immediate action. Delhi High Court in the case of Commissioner of Income-Tax v. Bharat Bhushan Jain , reported in 370 ITR 695 [Delhi] had an occasion to examine similar issue. After referring to the judgment of the Supreme Court in the case of Calcutta Knitwears [Supra], it was observed as under :- Having regard to the intent of the Supreme Court in paragraph 44 of the Calcutta Knitwears [Supra], where it was indicated that the Revenue has to be vigilant in issuing notice to the third party under section 158BD, immediately 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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