TMI Blog2005 (3) TMI 714X X X X Extracts X X X X X X X X Extracts X X X X ..... er and shareholder. Consequent to search it was noticed that M/s. Tirupati Reddy (HUF) has made some undisclosed investment out of undisclosed income and accordingly, section 158BD proceedings were initiated. Initially notice dated 8-7-1996 was issued under section 158BC to assessees. It followed by another rectification letter dated 9-8-1996 wherein the Assessing Officer asked the assessees to treat the notice issued under section 158BC dated 9-7-1996 as notice issued under section 158BD of the IT Act. The same was received and acknowledged by the assessees on 13-8-1996. In response to these notices, the assessees filed their respective return of income on 10-9-1996 admitting the undisclosed income. The Assessing Officer framed the assessm ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e date for service of the notice under section 158BD in the appellant s case is 18-7-1996. As per clause ( a ) of sub-section (2) of section 158BE of the Income-tax Act, 1961, the period of limitation for completion of block assessment in the case of other person referred to in section 158BD shall be, ( a ) One year 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 requisitioned after the 30th June, 1995, but before the 1st day of January, 1997. Since the notice under section 158BD in the appellant s case was served on 18-7-1996 the block assessment order ought to have been completed within one year from ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n this clause. There is no dispute regarding the applicability of this limitation clause. Now, we are concerned with whether the assessment framed was well within the time. For this purpose we are going through the paper Book relied by the Department for this Block assessment period. First Notice purported to be section 158BC notice issued on 8-7-1996 which is reproduced as below : "Notice under section 158BC of the Income-tax Act, 1961. PAN/GIR : 201-T Block Period : Assessment years 1986-87 to 1995-96 and 1996-97 Income-tax Office......... Dated : 8-7-1996 To Dr. M. Thirupathy Reddy (HUF) 11 12, Gopalakrishna Iyer St., T. Nagar, Madras - 17. In pursuance of the provisio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of Income-tax Central Circle II(1), Madras - 34." 7. The question before us is, which is the starting point of time for the purpose of computation of limitation under section 158BE(2)( a ). The letter dated 9-3-1996 which was reproduced above clarifies the position that the notice under section 158BC to be taken as notice as issued under section 158BD. If that being the case, that the notice under section 158BD must be 8-7-1996. Under no stretch of imagination, it can be taken as notice dated 9-8-1996 as notice issued under section 158BD. This 9-8-1996 letter is only clarificatory in nature admitting the mistake that it was issued only on the impression that it was notice under section 158BD and however it was by mistake issued styli ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s invalid and which cannot stand in the eye of law and which can be cured under the curable provisions of the I.T. Act. It is null and void and which is not a curable irregularity as it is not a just clerical mistake. The defects cannot be curable under section 292B and this section cannot be attracted and section does not come to the rescue of Department. The action of Assessing Officer cannot be justified by taking recourse of section 292B of the I.T. Act as this is not procedural mistake and time-barring assessment does not come within the purview of mistake, defect or omission referred in section 292B of the Income-tax Act, 1961. Therefore, assessment order is erroneous and an order with body having no soul cannot be stood on its own. T ..... X X X X Extracts X X X X X X X X Extracts X X X X
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