Where condition precedent to issue notice under section 158BC, viz. undisclosed income found during search proceedings was not satisfied, no notice under section 158BC could have been be issued to petitioner
• Action of the revenue in issuing section 158BC notice despite the appraisal report clearly stating that no incriminating material was found against petitioner was highly deplorable as it amounted to harassment of the taxpayer. The Officers of the Income Tax Department are obliged to proceed in accordance with the statutory provisions and cannot act on their whim and fancy. The Department should adopt a standard operating procedure to provide adequate safeguards before issuing notices under Chapter XVIB.
• The Respondents-revenue, i.e., the jurisdictional Chief Commissioner of Income Tax is directed to pay the costs of Rs. 20,000 to the petitioner within four weeks from today.
Refer: 74 taxmann.com 128 (Bombay)