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Block Assessment u/s 158BD
March, 26th 2007
The Supreme Court has delivered a judgement in the case of Manish Maheshwari vs ACIT 289 ITR 341 (SC) where it has been held that for invoking the provision of Section 158BD in the case of block assessment, satisfaction must be recorded by the AO of the searched person to the effect that undisclosed income belongs to any person other than the person with respect to whom the search was made and, further, the books of account or other documents are to be handed over to the AO having jurisdiction over such person. It has been held by the Supreme Court that recording of satisfaction is mandatory and in the absence of the same the proceedings under Section 158BD shall be bad in the eye of law.
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