CIT v. Bipinchandra Chimanlal Doshi

INCOME TAX ACT, 1961

--Search and seizure--Block assessmentSatisfaction in the case of assessee (other than searched person) was subsequent to block assessment in the case of searched person----There is no absolute proposition of law that satisfaction note must be prepered immediately after the assessment order framed in the searched person, otherwise the block assessment in the case of assessee (other than searched person) shall fail. Further, Block assessment order could not be set aside on mere ground that satisfaction note was recorded subsequent to assessment framed in case of searched person and, thus, it was belated.--AO framed the block assessment under section 158BC read with section 158BD and 143(3) in the case of assessee. Feeling aggrieved and dissatisfied with the block assessment order, assessee preferred an appeal before Tribunal who allowed the same by quashing and setting aside the block assessment framed on the ground that satisfaction in the case of assessee (other than searched person) was subsequent to the block assessment in the case of searched person and therefore, the same was belated. Held: Satisfaction note can be after the assessment is completed in the case of searched person. Under the circumstances, the order passed by the Tribunal quashing and setting aside the block assessment on the ground that satisfaction note in the case of assessee (other than searched person) was subsequent to the assessment framed in the case of searched person and therefore belated, could not be sustained.