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2014 (11) TMI 607 - HC - Income TaxValidity of assessment u/s 114 r.w section 158BD revision order u/s 263 evidences produced for claiming 50% of commission expenses or not Held that:- Assessees are individuals engaged in the business of financing and commission agency with Sree Gokulam Chits and Finance Company Limited - the proceedings initiated u/s 158BD of the Act by issuance of notice to the assessees was beyond the period of two years of completion of assessment u/s 158BC of the Act in the case of Sree Gokulam Chits and Finance Company Limited - Revenue contended that there is no time limit prescribed in the statute for completion of block assessment in respect of persons other than the person on whom search was made and, therefore, the notices issued u/s 158BD of the Act by the AO are valid - where limitation is not prescribed, action must be taken within reasonable period. The reasonable period would depend upon the facts of each case and it would be open to the assessee to contend that it is bad on the ground of delay - block assessment in respect of the Sree Gokulam Chits and Finance Company Limited was proceeded under Section 158BC of the Act - It is only on the basis of the block assessment of the person with respect to whom search was made under Section 132 of the Act, proceedings under Section 158BD of the Act in respect of any other person can be initiated - the provisions of Sections 158BD and 158BC are intertwined - the jurisdiction to issue notice u/s 158BD of the Act to any person, other than the person with respect to whom search was made, and the consequent time limit prescribed under Section 158BE of the Act in respect of third parties, would certainly be included within the two years period given to the AO for completion of block assessment under section 158BE(1) of the Act - When such an inference can be drawn from a bare reading of the provisions which are explicit, it does not lie in the mouth of the Revenue to state that there is no time limit prescribed in the statute for initiation of proceedings under Section 158BD of the Act in Commissioner of Income Tax v. Umesh Chandra Gupta [2014 (2) TMI 521 - DELHI HIGH COURT] also the same has been held as such no substantial question of law arises for consideration Decided against revenue.
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