TMI Blog2011 (7) TMI 727X X X X Extracts X X X X X X X X Extracts X X X X ..... tion contemplated under section 158BD of the Act against a third party to a search, is necessarily to be during the course of block assessment proceedings under section 158BC of the searched person - Appeal is dismissed - 171 of 2011 - - - Dated:- 19-7-2011 - ADARSH KUMAR GOEL, AJAY KUMAR MITTAL JJ. JUDGMENT Ajay Kumar Mittal J.- 1. This appeal under section 260A of the Income-tax Act, 1961 (for short "the Act"), has been filed by the Revenue against the order dated June 25, 2010, passed by the Income-tax Appellate Tribunal, Chandigarh Bench "B", Chandigarh (in short "the Tribunal") in ITSS(A) No. 5/Chandi/2010, for the block period from April 1, 1998, to February 5, 2003. 2. The following substantial question of law has ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 001-02 and 2002-03. 4. The Assessing Officer, Central Circle II, Ludhiana, having jurisdiction over the cases of the Bhatia group, on examination of the matter sent his satisfaction under section 158BD of the Act in the case of the present assessee for the block period from April 1, 1998, to February 5, 2003, on July 15, 2005. The block assessment in the case of the Bhatia group of companies was completed on March 30, 2005. After service of relevant notice and completion of other legal formalities the undisclosed income of the assessee for the block period aforesaid was computed at Rs. 8,81,830. Accordingly, the block assessment was finalized at the aforesaid undisclosed income, vide order under section 158BC read with section 158BD of th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nder (page 271) : "According to the plain reading of section 158BD ibid, the Assessing Officer, while framing assessment of an assessee under section 158BC of the Act against whom action has been taken under section 132 or 132A of the Act, is mandatorily required to record satisfaction before action can be initiated under section 158BD of the Act against such other person. In other words, the satisfaction by the Assessing Officer making assessment under section 158BC of the Act, in the case of the person searched, that there is certain undisclosed income as a result of examination of the seized material which belongs to some other identified person, is essential for assuming jurisdiction under section 158BD of the Act. The satisfaction ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the seized material or documents of the searched person when the block assessment proceedings have concluded and no other proceedings are pending before him. If any other time limit is read in the provisions/statute, it shall lead to anomaly and would be arbitrary and unreason-able. It could not be read in the provision that where block assessment under section 158BC of the Act in the case of an assessee against whom action under section 132 or 132A of the Act had been carried out is finalized, the Revenue can take action at any time in the absence of any specific limitation prescribed in the statute. A construction which leads to such an anomaly should be avoided." 10. In view of the above, no substantial question of law as claimed by ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
