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2008 (4) TMI 458 - KARNATAKA HIGH COURTSearch and seizure- block assessment- The respondent-assessee has been engaged in the business of hire purchase, leasing of assets and intercorporate deposits, etc. Between January 3, 1997 and February 28, 1997 a search was conducted under section 132 of the Act by the Income tax Department in the premises of the assessee. During the said search certain incriminating documents were found which transpired that the assessee-company had not disclosed its true and correct income in its returns for the preceding assessment. Therefore, notices under section 158BC of the Act were issued on January 13, 1997 and July 10, 1997 against the respective assessees requiring them to submit the returns of income disclosing therein their true and correct income for the block assessment period. Assessee filed appeals before the Tribunal contending that the block assessment order were barred by limitation. The revenue challenged the maintainability of the appeals. Held that- allowing the appeals, the assessee ought to have filed these appeals against the order of the block assessment before the Commissioner (Appeals) and not before the Tribunal and the Tribunal has no jurisdiction to entertain the appeals and its order could not be allowed to sustain in law. Since the search was initiated in both the case after January 1 1997, under section 158(1)(b), the limitation for completion of block assessment under section 158BC was two years. Therefore, the block assessment orders passed against the assessee were within the period of limitation.
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