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2006 (4) TMI 204 - ITAT JODHPURAssumption of jurisdiction u/s 158BFA(2) - penalty imposed - Block Assessment in search case - Search And Seizure u/s 132 - search initiated before the date on which section 158BFA came into effect - Undisclosed income - HELD THAT:- We are of the considered opinion that 'initiation' means the very beginning of a process or to take the first step. The very first act, in the series of acts is the 'initiation' of the main action. The warrant of authorisation is such initiation of taking proceedings u/s 132 of the Act. Whether, the warrant is actually executed or not, and the date on which the possession of asset was taken by the revenue under the section, is entirely immaterial. The terms "initiation" and "execution" are two different words having different meanings and are not synonymous. The word "execution" means starting or commencing the order or direction or intention by putting into action. Therefore, the initiation is something different from commencement of search. Resultantly, we come to the conclusion that "initiation of search" commences with the issue of authorization by the authorities. Having come to the above conclusion, now it is for certain that the search in this case was initiated on 30-12-1996. Further, it is a well-recognized fact that the penal provision 158BFA(2) came into operation only on 1-1-1997. Meaning thereby that on the day when the search was initiated in the given case, the abovesaid penal provision was not in vogue. Thus, the very assumption of jurisdiction u/s 158BFA(2) is void ab initio. Hence, in the given facts and the circumstances of this case no penalty can be levied in this case u/s 158BFA(2). Since, we have decided the legal issue in the favour of the assessee, there is no need to decide other grounds of appeal. In the result, the impugned penalty is hereby cancelled and the appeal of the assessee is allowed.
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