TMI Blog2012 (1) TMI 173X X X X Extracts X X X X X X X X Extracts X X X X ..... the same first. 3. The facts necessary for adjudication of this issue is stated in brief. The Department carried out a search and seizure operation in the hands of the assessee s husband, Shri C.G.Nair on 29-11-1995. The block assessment, in the hands of Shri C.G.Nair was initially completed on 29-11-1996. In the appeal preferred by the said Shri C.G. Nair, the tribunal set aside the assessment and accordingly, the assessing officer reframed the assessment on 15-03-2000. Thus, after completion of more than three years from the date of completion of block assessment proceedings in the hands of Shri C.G. Nair, the assessing officer initiated block assessment proceedings in the hands of the assessee u/s 158BD of the Act on 26.6.2003 by issu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l available on record. It is not in dispute that the block assessment proceedings in the case of Shri M Reghunthan was completed u/s 158BC on 31-07-2001. No doubt, there is no provision in the Income-tax Act fixing the time limit for issuing notice u/s 158BD of the Act in respect of the person other than searched, but, it does not mean that the assessing officer can issue the notice at his sweet will at any time. Finality of the proceedings cannot be seen so lightly. Section 132(9A) enables the authorized officer to examine the books of account or other documents or any money, bullion, jewellery or other valuable articles and if it is not relatable to any person against whom search was conducted, he has to hand over the same to the concerne ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... SB). The special Bench of the Tribunal examined the scheme of the Act and observed on page 481, paragraph 110 111, as under 110. It is clear from the above that the provisions of section 158BD are thus inextricably interlinked and intertwined with section 158BC and they are like Siamese twins. In the circumstance, it is not possible to view section 158BD in isolation and de hors section 158BC as that would militate against the intention behind the enactment of Chapter XIV-B to provide for a complete code for assessment of undisclosed income as different from the assessment of normal income in regular assessment. The concept of undisclosed income as different from what we may call as normal or regular income is at the very core of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... having jurisdiction over the said other person at that material point of time and it is at that stage the second Assessing Officer assumes jurisdiction at that point of time. If the Assessing Officer assessing the person searched does not find any undisclosed income at all, or does not arrive at any finding in respect of the same or having arrived at such finding does not hand over the material to the second Assessing Officer, the provisions of section 158BD do not come into operation at all. The Special Bench again observed as follows on page 484 at paragraph 114 115: 114. Section 158BE provides for time limit for completion of block assessment. It stipulates that the order under section 158BC shall be passed within two years fro ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... BE expires. After the said date, it is not possible to invoke section 158BD at all. In view of the above, issue of notice u/s 158BD after three years from the date of completion of the assessment in respect of the person against whom search was carried out is barred by limitation. A similar view was taken by Hyderabad Bench of this Tribunal in the case of Dy.CIT, Cir. Vs Shri P Venkata Ramana in ITSSA No.08/HYD/2010 order dated 11-02-2011. A similar view was also taken by the Gujarat High Court also in the case of Khandubhai Vasanji Desai Ors vs DCIT (1999) 236 ITR 73 (Guj). The co-ordinate bench of the Tribunal has also taken a similar view in Assist.Commissioner of Income-tax vs Smt. Cicy P Thomas in ITSS No.32/Coch/2007 and CO No.3 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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