TMI Blog2013 (3) TMI 177X X X X Extracts X X X X X X X X Extracts X X X X ..... rson in whose case, there was no search made under Section 132 of the Act, the provisions of Section 158 BD are to be invoked. As in the present case as emerges from the record there is no authorization of search or search warrants under Sections 132 (i) in respect of these assessees. No doubt, while searching the premises of their father Lal Singh, some documents and other material which were not belonging to the assessees were seized and on that basis, there could be block assessment. However, in such a situation when there was no authorization in respect of these assessees, it is the provisions of Section 158 BD which would be attracted and not the provisions of 158 BC. Such an assessment without authorization is void ab-initio. See ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sdiction by issuance of notice under Section 158 BC was invalid and void-ab-initio ? 2. Whether on the facts and in the circumstances of the case, the Tribunal was legally justified in cancelling the assessment by holding that the assumption of jurisdiction by issuance of notice under Section 158 158BC was invalid and void ab-initio though the jurisdiction over the person (Lal Singh) in whose case search warrant was issued and the other person (the assessee under consideration) in whose case warrant was not issued vested with thesame assessing officer ?. These questions of law have arisen on the basis of information received from some person to the effect that Prem Jain and Rattan Jain, residents of village Malerkotla are big property ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... estion of law involved, it is not necessary to take note of the nature of these additions. Suffice to state that because of these additions of amount treated as undisclosed income, appellants preferred separate appeals (five in number) before the Income Tax Appellate Tribunal. Main contention of learned counsel for the appellants was that the entire assessment proceedings were without jurisdiction and void ab-initio for the reason that there was no authorization for issuing search warrants against them and in these circumstances, there could not have been any proper assessment against them under Section 158 BC of the Act. It was submitted that in such circumstances, block assessment, if any, could have been only under section 158 BD of th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sed income of other person i.e. a person in whose case, there was no search made under Section 132 of the Act, the provisions of Section 158 BD are to be invoked. These provisions arereproduced below:- Section 158BD of the Income Tax Act, 1961, authorises the Department to asses a person other than the searched person based on materials recovered during search. No independent notice is contemplated under the section because it only givens jurisdiction to the Assessing Officer to assess a person other than the searched person based on materials gathered during search. The procedure for assessment of a person other than the searched person under Section 158 BD is the same procedure contained in Section 158 BC. Since no notice is prescribed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... -87 to 1996-97 was made on January 31,1997,creating a total demand of Rs. 50,13,204/- on the petitioner in his status as individual. As the title of the said Chapter suggests these are special provisions for assessment of search cases and, therefore, a search under Section 132 is a pre- requisite for invoking the provisions of the said Chapter. It is axiomatic that search under section 132 , as contemplated in the Chapter has to be a valid search. An illegal search is no search and as a necessary corollary in such a case, Chapter XIV-B would have no application. Since in the instant case, we have come to the conclusion that the search conducted on January 11,1996, was without jurisdiction and was thus void ab initio, the imminent consequenc ..... X X X X Extracts X X X X X X X X Extracts X X X X
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