2010 (9) TMI 266

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..... account of jewellery were based on estimates, neither the additions to the income nor the penalty could be levied. He pointed out that in the present case the Assessing Officer (in short "AO") himself was not sure as to whom the jewellery belonged to as he had made the additions on account of jewellery in the hands of the appellant as well as in hands of his wife. Mr. Mukesh Chand further submitted that as no notice was issued during the course of the Block Assessment proceedings for initiation of penalty under Section 158BFA(2) of the Act, penalty proceedings were time barred. In this connection, he referred to the assessment order dated 31st January, 2000 for the aforesaid Block Assessment Period passed by the Joint Commissioner of Incom .....

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..... 158BFA of the Act, 1961. If you do not wish to avail yourself of this opportunity of being heard in person or through authorised representative, you may show cause in writing on or before the said date which will be considered before any such order is made u/s 158BFA." (emphasis supplied) 5. From the aforesaid notice, it is apparent that the same is a composite notice issued under Sub-Sections (1) and (2) of the Section 158BFA of the Act. The relevant portion of the Section 158BFA of the Act reads as under :- "158BFA. LEVY OF INTEREST AND PENALTY IN CERTAIN CASES. (1) Where the return of total income including undisclosed income for the block period, in respect of search initiated under section 132 or books of account, other documents o .....

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..... clause (a) of section 158BC; (ii)        the tax payable on the basis of such return has been paid or, if the assets seized consist of money, the assessee offers the money so seized to be adjusted against the tax payable; (iii)       evidence of tax paid is furnished along with the return; and (iv)       an appeal is not filed against the assessment of that part of income which is shown in the return : Provided further that the provisions of the preceding proviso shall not apply where the undisclosed income determined by the Assessing Officer is in excess of the income shown in the return and in such cases the penalty shall be imposed on that .....

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