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2014 (10) TMI 573 - GUJARAT HIGH COURTValidity of authorization of issue u/s 132 – Notice issued u/s 158BD – Petition filed in the name of individual persons and not in the capacity of heirs of deceased person - Held that:- So far as challenge to the warrant of authorization issued u/s 132 of the Act and to quash the assessment order dated 11.09.2003 framed u/s 158BC of the Act is concerned, it is mainly on the ground that the warrant of authorization issued u/s 132 of the Act was in the name of a dead person i.e. Late Shri Girishbhai K. Mehta and therefore, the warrant of authorization issued u/s 132 of the Act and subsequent assessment order dated 11.09.2003 framed u/s 158BC of the Act are illegal – Relying upon Commissioner of Income Tax – III Versus M/s. Calcutta Knitwears, Ludhiana [2014 (4) TMI 33 - SUPREME COURT] - as such the search warrant was issued for the premises, however such authorization was in the name of the head of the family – Late Shri Girishbhai K. Mehta - However, as such the search warrant was with respect to the premises i.e. 9, “Gayatri”, Motinagar Society and as part of the search in Nirma Group - at the time of search of the premises, the petitioner No.1 infact signed the panchnama, claiming to be the heir of deceased person - Not only that even thereafter when the proceedings u/s 158BC of the Act came to be initiated, no protest was raised by the petitioners and on the contrary, the returns of the income for the block period was filed on 03.10.2002 and the same was also signed by the petitioner No.1 and thereafter the assessment order determining the income as “NIL” has been passed on 11.09.2003 - when the search warrant was issued, it was for the premises and as such as a part of search in Nirma Group, it cannot be said that search warrant was null and void as sought to be contended on behalf of the petitioners. Whether during the search u/s 132 of the Act, the AO finds that any undisclosed income belongs to any person other than the person with respect to whom the search was made u/s 132 of the Act or whose books of account or other documents or any assets were requisitioned u/s 132A of the Act is traced out, the proceedings u/s 158BD of the Act against any other person, other than the person with respect to whom the search was made would be permissible and/or maintainable or not –Held that:- As decided in Commissioner of Income Tax – III Versus M/s. Calcutta Knitwears, Ludhiana [2014 (4) TMI 33 - SUPREME COURT] the courts while interpreting the provisions of fiscal legislation should neither add nor subtract a word from the provisions of instant meaning of the sections - any taxing statute should ordinarily be read, understood in the sense in which it is harmonious with the object of the statute to effectuate the legislative animation - nothing is to be read in, nothing is to be implied; one can only look fairly at the language used and nothing more and nothing less - while interpreting the machinery provision, the courts would interpret a provision in such a way that it would give meaning to the charging provisions and that the machinery provisions are liberally construed by the courts - machinery provisions must, be so construed as would effectuate the object and purpose of the statute and not defeat the same. For invoking a block assessment, there must be a search conducted u/s 132 of the Act, or documents or assessed requisitioned u/s 132A and the AO is satisfied that there exists any undisclosed income which may belong to other person other than the person with respect to whom the search was conducted or requisition was made - the word used under section 158BD of the Act is “where the AO is satisfied that any undisclosed belongings to any person, other than the person with respect to whom search was made under section 132” and it does not say that “where the AO is satisfied that any undisclosed income belongs to any person, other than the person with respect to whom the valid and legal search was made under section 132” - Under the circumstances and assuming without prejudice to the findings with respect to the authorization u/s 132 of the Act, that the search was against a dead person and not valid, in that case also, the block assessment proceedings initiated under section 158BD of the Act by the impugned notices cannot be said to be illegal and/or contrary to the provisions of the statute - as such all the conditions / requirements of section 158BD of the Act are satisfied – thus, the petitioners are not entitled to any reliefs more particularly with respect to the challenge to the notices u/s 158BD of the Act – Decided against assessee.
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