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2017 (10) TMI 1009 - HC - Income TaxScope of Appeal & The Powers of Appellate Authority - Held that:- Under the amended section 251 of the Act, the Appellate Commissioner may confirm, reduce, enhance, or annul the assessment. But he cannot refer the case back to the Assessing Officer for making a fresh assessment; nor can he direct the Officer to decide in accordance with his directions. Records and Satisfaction under Section 158BD - period of limitation - Held that:- Supreme Court in Manish Maheshwari v. CIT (2007 (2) TMI 148 - SUPREME COURT OF INDIA) has held that section 158-BD provides for taking recourse to a block assessment in terms of Section 158-BC regarding any other person, the conditions precedent for that are: (i) satisfaction must be recorded by the assessing officer that any undisclosed income belongs to any person, other than the person regarding whom search was made under Section 132 of the Act; (ii) the books of accounts or other documents or assets seized or requisitioned had been handed over to the assessing officer having jurisdiction over such other person; and (iii) the assessing officer has proceeded under Section 158-BC against such other person. Because of the authoritative assertion of the legal principles in Manish Maheshwari about section 158 BD, we may obviate any reference to Panchajanyam, whose holding turns on its own facts. The upshot of the discussion is that the assessment order, dt.28.07.2005, is vitiated. The statutory requirement for completing the block assessment under section 158BE(2)(b) is “two years from the end of the month in which the notice under this Chapter was served on such other person in respect of search initiated or books of account or other documents or any assets are requisitioned on or after the 1st day of January 1997.” Determining the limitation under section 158BE (2)(b) of the Act, the Madras High Court in Commissioner of Income Tax vs. K.M. Ganesan [2009 (11) TMI 572 - Madras High Court] has held that if the notice is given first under section 158BC and then correctly given under section 158BD, the limitation runs from the date of first notice. Here, the search under section 132 of the Act was conducted on 04.11.2000; the notice under section 158BC was issued on o8.06.2001. The proceedings were concluded on 28.07.2005, when the Assessing Officer passed the order. The notice under section 158BC of the Act, as is seen, was given way beyond two years ago. Even going by that reckoning, the whole proceedings have been barred by limitation. So, we hold that the impugned order, dt.04.06.2008, of the Appellate Tribunal is unexceptionable and unassailable. The questions of law, therefore, are answered against the Revenue and in favour of the assessee.
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