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2022 (5) TMI 167 - AT - Income TaxValidity of proceedings u/s 158BD - Time limit for completion of block assessment - In course of search operation conducted by Revenue u/s 132(1) various books of accounts and documents were found and seized by Revenue - HELD THAT:- The Notice u/s 158BC of the 1961 Act, was issued by the AO of the assessee, on 05th May, 2000, which was served on the assessee, on 08th May, 2000. The assessment is to be completed within a period of two years from the end of month in which notice u/s 158BC was served by the AO on the assessee, which in the instant case was served by the AO on the assessee, on 08th May, 2000, thus, the assessment for the Block Period ended 23.08.1998, in the instant case is to be completed latest by 31st May, 2002, as is provided u/s 158BE - In the instant case, the assessment order for the Block Period from 01.04.1988 to 23.08.1998 under the provisions of Section 158BC read with Section 158BD, was passed by the AO, on 30th May, 2002, which is within the aforesaid limitation period of two years from the end of the month in which notice u/s 158BC was served by the AO which in the instant case was served on 08th May, 2000. The notice u/s 158BC was issued by AO on 5th May, 2000, which was served on 08th May, 2000. The time limit for passing assessment for Block Period was two years from the end of month in which notice u/s 158BC was served, i.e. 31st May, 2002. The Block Period assessment order passed by AO u/s 158BC(c) read with Section 158BD, was dated 30th May, 2002, which is within limitation period. Thus, the contentions of the assessee are devoid of any merit and are hereby rejected. Eligibility of Shri R K Jain who claimed himself to be CIT(A) holding charge of Allahabad, passed the appellate order - This appellate order was passed by Shri R K Jain on 28.09.2006 which is covered by order of Hon’ble High Court specifying date of vacation of office as CIT(A), Allahabad by said Shri R K Jain and hence this appellate order dated 28.09.2006 is null and void. If the assessee wanted to agitate the order of Hon’ble Allahabad High Court, it could have approached Hon’ble Allahabad High Court or Hon’ble Apex Court, but to agitate the said issue before tribunal ( being a body lower in hierarchy to Hon’ble High Court) once the appellate order dated 28.09.2006 passed by Shri R K Jain is covered by the period declared by Hon’ble High Court when he was not holding the charge of CIT(A), Allahabad, is clearly a misuse and abuse of process of law and is contemptuous on the part of the assessee. Thus, we hold that the ld. CIT(A) rightly proceeded to pass impugned appellate order dated 16th February, 2017. Thus, there is no merit in the arguments of the assessee, which stand rejected. We order accordingly. Validity of Second appellate order u/s 250(6) - We have observed that ld. CIT(A) dismissed the appeal of the assessee on the merits of the additions made by the AO in limine without discussing the issues on merits which were raised by the assessee in its appeal filed before ld. CIT(A). The reference is drawn to provision of Section 250(6) of the Act, whereby it is incumbent upon ld. CIT(A) to decide the appeal on merits, after recording his reason for the decision arrived on the issues raised by the assessee in its appeal, but the appellate order in the instant case was passed by ld. CIT(A in limine without discussing the issues on merits wherein he merely confirmed the additions without giving his own reasons for decision by passing a non-speaking and non-reasoned order on merits of each of the additions made by the AO . Thus, the appellate order passed by ld. CIT(A) on the merits of additions made to the income of the assessee by AO,which is a non-speaking and unreasoned order is clearly not sustainable in the eyes of law. Based on facts and circumstances of the case and in the interest of justice and fairness to both the parties, the matter can go back to the file of ld. CIT(A) limited to fresh adjudication of all the issues on merits of additions made by the AO, so raised by the assessee in its appeal filed before ld. CIT(A) on merits in accordance with law. So far as issues raised by assessee on legal grounds, as adjudicated by us in this order, shall remain final and binding on both the parties, per our decision in this order.Thus keeping in view the entire facts and circumstances of the case as discussed above and in fairness to both the parties with a view to grant justice, we are inclined to set aside and remand the matter back to the file of ld. CIT(A) limited to adjudication of issues concerning additions to income made by the AO, to be adjudicated on merits and in accordance with law. Appeal partly allowed for statistical purposes.
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