TMI Blog2012 (6) TMI 382X X X X Extracts X X X X X X X X Extracts X X X X ..... the assessee in respect of whom details of suppressed income were received, were assessable by the same Assessing Officer - when the same Assessing Officer has jurisdiction to assess the searched assessee under Section 158BC and the other assessee under Section 158BD whose undisclosed income is also found in the course of such search, there is no necessity for the AO to record satisfaction as required under Section 158BD because there is no transfer of file from one officer to another - setting aside the order of the Tribunal and uphold the assessment under Section 158BD - in favour of revenue. Assessment is also barred by limitation – Held that:- As it is prudent that there is no time limit prescribed under the Act for issuance of noti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing for the respondent. 2. First question to be considered is whether the Tribunal was justified in cancelling the block assessment confirmed in first appeal for the reason that Assessing Officer has not recorded reasons for issuance of notice for assessment under Section 158BD of the Income Tax Act (hereinafter called "the Act"). We notice that the Tribunal held in favour of the assessee following their order in appeal in the case of M/s.Panchajanyam Management Agencies case wherein also similar issue arose for consideration. However, Senior counsel appearing for the Revenue referred to the judgment of this court in COMMISSIONER OF INCOME TAX VS. PANCHAJANYAM MANAGEMENT AGENCIES SERVICES reported in (2011) 333 ITR 281 wherein this cour ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e real owner of the entire business group. One Sri.P.K.Moideen, the only other partner, has only 5% shares in the respondent-firm. No search warrant was issued in the name of the respondent or in the name of both the partners namely, Mrs.Souda Gafoor and Sri.P.K.Moideen. However, since evidence regarding business and earning of unaccounted income by the respondent-firm were found in the course of search in the residential and business premises of Sri.Abdul Gafoor, the husband of Mrs.Souda Gafoor holding 95% of the shares of the respondent-firm, notice was issued under Section 158BD against the respondent-firm based on materials gathered in search in the business and residential premises of the respondent-firm's managing partner's husband. I ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... allow the appeal on this issue by setting aside the order of the Tribunal and uphold the assessment under Section 158BD. 4. The next question to be considered is limitation claimed by the assessee and accepted by the Tribunal. Counsel for the assessee relied on decision of the Punjab and Haryana High Court in COMMISSIONER OF INCOME TAX Vs. PARVEEN FABRICS (P) LTD. reported in (2011) 198 TAXMAN 463 wherein the Punjab High Court held that simultaneous with Section 158BC-assessment initiated against the searched assessee, the department should proceed against the other assessees for assessment under Section 158BD. We are unable to accept this contention because the limitation provided under Section 158BE is for completion of assessment both ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s of all concerns within the group, on the ground that there is delay in initiation of proceedings under Section 158BD. 5. We notice that the assessment of the searched assessees in the same group were completed on 29.3.2001 which was admittedly within the period of limitation prescribed. However, only after completion of assessment of the said assessees, notice was issued under Section 158BD on the respondent-assessee on 29.5.2001. The assessment1 was completed on the respondent-assessee on 29.5.2003 which is within two years from the end of the month in which notice under Section 158BD was issued to the respondent-assessee as provided under Section 158BE(2)(b) of the Act. So much so, the assessment under Section 158BD is well within t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d in the course of search. In the absence of any provision in the Act requiring the department to issue notice under Section 158BD within a time frame, we do not think the court can prescribe any time limit. At the maximum we can declare an assessment arbitrary, if assessment is not initiated within a reasonable time which is not the case here because assessment was initiated under Section 158BD within two months from completion of assessment under Section 158BC against searched assessees which was made within time. So much so, we hold that the assessment under Section 158BD was initiated within a reasonable time and the same was completed within the statutory period of 2 years as contemplated under Section 158BE(2)(b) of the Act. We, there ..... X X X X Extracts X X X X X X X X Extracts X X X X
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