Law:

Section:

Section 158BD of the Income-tax Act, 1961 - Block assessment in search cases - Undisclosed income of any other person - There is no mention in section 158BD that Assessing Officer, before transferring file to another officer having jurisdiction to assess person other than assessee proceeded under section 132 or 132A, has to record his satisfaction in writing [In favour of revenue] Even though section 158BD is an enabling provision authorizing the department to assess any person other than the searched assessee or assessees against whom documents and records are called for under section 132A, yet assessment in such case has to be completed strictly in accordance with the procedure provided under section 158BC. There is no mention in section 158BD that the Assessing Officer before transferring the file to another officer having jurisdiction to assess the person other than the assessee proceeded under section 132 or 132A has to record his satisfaction in writing. It is pertinent to note that wherever the Assessing Officers are required to record their satisfaction before issuance of notice, statute prescribes the same. A situation of that nature is covered by section 148(2) which requires the officer to record reasons for reopening an assessment before issuing notice. There is no such requirement in section 158BD but the satisfaction referred to therein is only about undisclosed income of a person other than the assessee searched under section 132 or investigated under section 132A and the satisfaction is only for the purpose of transferring the file to the officer having jurisdiction to assess such other person. In fact, after receipt of the documents and materials from the Assessing Officer transferring these, the officer to whom materials are transferred should follow the procedure under section 158BC. Non-recording of reason and non-communication of the same by the Assessing Officer while issuing notice under section 158BC will not invalidate assessment completed under section 158BD, read with section 158BC. In fact, when records are received by the Assessing Officer from another officer under section 158BD he has to only issue notice to file return in Form…

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