TMI Blog2006 (6) TMI 148X X X X Extracts X X X X X X X X Extracts X X X X ..... e Act, set aside this assessment on the following points, vide his order dt.20th Nov., 2001: "(a) No enquiries were made for Sarurpur land deal of Rs. 39,03,600 and profits estimated at Rs. 2,56,666 without any verification of it. (b) No enquiries were made for deal of Rs. 21,10,368 and commission @ 2 per cent at Rs. 42,206 was taken as profit from this deal. (c) No enquiries whatsoever of transaction of Rs. 23,50,000 were made and only profit of Rs. 63,937 is estimated. (d) Nothing on record to indicate that the AO made any verification in regard to investment of Rs. 18,70,000. (e) Without any verification and without bringing anything on record as regards Badkhal land deal of Rs. 71,40,000 and only addition of Rs. 6,01,400 was made. (f) Additions on account of commission has been made without collecting sufficient information and without examining and verifying it." 3. After such remand by CIT in exercise of powers under s. 263, the AO passed an order dt.31st March, 2003. The assessee filed appeal before CIT(A) against some of the additions made by the AO. One of the pleas raised by the assessee before CIT(A) was that the order dt.31st March, 2003passed by the AO wa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eard under the proviso to s. 129; or (iv) in a case where an application made before the Settlement Commission under s. 245C is rejected by it or is not allowed to be proceeded with by it, the period commencing on the date on which such application is made and ending with the date on which the order under sub-s. (1) of s. 245D is received by the CIT under sub-s. (2) of that section, shall be excluded: Provided that where immediately after the exclusion of the aforesaid period, the period of limitation referred to in sub-s. (1) or sub-s. (2) available to the AO for making an order under cl. (c) of s. 158BC is less than sixty days, such remaining period shall be extended to sixty days and the aforesaid period of limitation shall be deemed to be extended accordingly. Explanation 2: For the removal of doubts, it is hereby declared that the authorisation referred to in sub-s. (1) shall be deemed to have been executed,- (a) in the case of search, on the conclusion of search as recorded in the last Panchnama drawn in relation to any person in whose case the warrant of authorisation has been issued; (b) in the case of requisition under s. 132A, on the actual receipts of the books ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... wise provided in this Chapter, all other provisions of this Act shall apply to assessment made under this Chapter." 5. Sec. 158BE prescribes the time-limit for completion of a block assessment and it lays down that where search is conducted on or after1st Jan., 1997the order of assessment should be passed within 2 years from the end of the month in which the authorization for search was executed. In the present case, the authorization for search was executed on12th Oct., 1999. The order of assessment has to be passed on or before31st Oct., 2001. The order of assessment was passed on31st March, 2001well within the period of limitation. The order of assessment after the same was set aside by CIT under s. 263, was passed on31st March, 2003which is beyond the period of limitation laid down in s. 158BE. 6. The case of the Revenue before us was that by virtue of s. 158BH, other provisions of the Act would apply to block assessment proceedings under Chapter XIV-B of the Act and therefore by virtue of the provisions of s. 153(2A) of the Act, the period of limitation for passing the order of assessment after the same is set aside by CIT under s. 263 would be one year from the end of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Warehousing Corporation vs. CIT (1999) 153 CTR (SC) 177 : (1999) 237 ITR 589 (SC). For the proposition that an interpretation that leads to unjust results should not be adopted, he relied on the decision in the case of CIT vs. S. Teja Singh (1959) 35 ITR 408 (SC). He also placed reliance on the decision of the Tribunal Calcutta Bench in the case of W.C. Shaw (P) Ltd. vs. Asstt. CIT (2005) 94 TTJ (Kol) 169 : (2005) 93 ITD 535 (Kol) and the Delhi Bench of the Tribunal in the case of Shrivirendra Kumar Bhatia vs. Asstt. CIT IT(SS)A Nos. 160 to 162 and 178/Del/2004 order dt. 16th May, 2005 wherein it has been accepted that for a fresh assessment to be passed after remand by the Tribunal under s. 254 or by the CIT under s. 263 the period of limitation would be governed by the provisions of s. 153(2A) of the Act. 9. We have considered the rival submissions. Similar issue, as has been raised in the present appeal. had come up for consideration before the Hon'ble Rajasthan High Court in the case of Ramesh Chand Soni. The facts of the case before the Rajasthan High Court were that the books of accounts of the assessee were directed to be subjected to a special audit under s. 142(2A) of th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ns was as to whether the order of the Tribunal/order of CIT under s. 263 were a direction falling under s. 153(3) or an order setting aside the orders of lower authority and remanding issue for fresh consideration falling under s. 153(2A). The question whether s. 153 at all will be applicable for computing period of limitation for completing/passing an order of assessment under Chapter XIV-B of the Act was not raised nor considered by the Tribunal. The decision of the Hon'ble Rajasthan High Court has however considered and dealt with a larger issue. The Tribunal had no occasion to consider the larger issue as it was neither considered nor argued on behalf of the assessee. The decision of the Hon'ble Rajasthan High Court was also not deliberated upon. We are of the view that these decisions will not be of any assistance to the case pleaded by the Revenue. We therefore hold that the order dt.31st March, 2003was passed beyond the time prescribed for completing assessment under Chapter XIV-B of the Act and the same is annulled. In view of our decision on this issue, the other issues raised by the assessee in the grounds of appeal are not taken up for consideration. 11. In the result, ..... 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