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TMI Blog2007 (11) TMI 340X X X X Extracts X X X X X X X X Extracts X X X X ..... ant much after the framing of block assessment of the searched person is bad in the eye of law and liable to be quashed. 3. On the facts and circumstances of the case, there was no justification for initiating the proceedings under s. 158BD of the Act and as such the assessment framed thereof is null and void and liable to be declared so." 3. The facts and circumstances necessary for adjudication of the aforesaid grounds are as follows. The assessee is an individual engaged in the business of commission agent of fruits. The assessee along with his sons acts as a commission agent for mangoes grown in Vijayawada during the mango season starting in the middle of March till the end of June. Search and seizure operation under s. 132(1) of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ears from the end of the month in which the notice under s. 158BD is served on such other person. 6. The question that has been raised by the assessee before us is as to whether the AO of the other person can issue notice under s. 158BD at any time i.e. well beyond a reasonable time from the date on which he receives intimation from the AO of the person who was subjected to a search under s. 132 of the Act. In the present case the AO of the assessee has issued notice under s. 158BD to the assessee on 4th Dec, 2001 i.e. after a period of 23 months and 10 days from the time when he received intimation from the AO of the person who was subjected to a search. Similar question had arisen for consideration before the Delhi Bench of the Tribunal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and assets seized relate, within 15 days of the seizure and thereafter the AO is required to serve notice on such person to whom the books of account etc. relate requiring him to furnish a block return under s. 158BC. The Gujarat High Court was concerned with the constitutional validity of s. 158BD of the Act and one of the contentions was expressed in the form of an apprehension that a notice under s. 158BD can be issued by the AO in the case of the other person (other than the person who was searched) at any time. While repelling this contention and putting at rest the apprehension saying that it is ill founded, the Gujarat High Court held that the notice under s. 158BD has to be issued within a reasonable period from the date of the sea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssment of Manoj Aggarwal. Even if the period of 60 days is to be reckoned from 15th July, 2003, the date on which the AO of Manoj Aggarwal wrote a letter to the AO of Radhey Shyam Bansal, there is a delay of almost 8 months before issue of the notice under s. 158BD. In such circumstances, we hold that the notice having been issued well beyond a reasonable period of time, the assessment made on the assessee is bad in law." 7. As can be seen from the above order of the Tribunal, a period of 19 months was considered as not reasonable time by the Tribunal in the aforesaid case for issue of notice under s. 158BD from the date of receipt of information by the AO. The Tribunal had placed reliance on the decision of the Hon'ble Gujarat High Court ..... X X X X Extracts X X X X X X X X Extracts X X X X
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