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TMI Blog2012 (7) TMI 527X X X X Extracts X X X X X X X X Extracts X X X X ..... 6.2000, when the last of the authorisations for the search was executed. On 15.05.2002, an order under Section 127 of the Act was passed which was to take effect from 15.05.2000. By this order the assessee‟s case was transferred from Income Tax Officer, Ward 7(2) Bangalore to DCIT, Central Circle 25, New Delhi. This officer issued a notice on 11.06.2002, calling upon the assessee (under Section 158BC) to file a block return of income. The notice was served on the assessee on the same day and she filed a block return in Form No.2B declaring undisclosed income of Rs. nil. The return was filed on 26.04.2002. After hearing the assessee, the block assessment under Section 158BC was completed by the DCIT, Central Circle 25, New Delhi (hereinafter referred to as the „Assessing Officer‟), by order dated 30.07.2002. In this assessment order the undisclosed income of the assessee was determined at Rs.13,62,730/-. 3. The assessee challenged the assessment in appeal before the CIT (Appeals). By order dated 27.03.2003 the CIT (Appeals) allowed the appeal and deleted the additions made in the block assessment order as the assessee‟s undisclosed income. In the appeal the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion issued by the Joint/ Additional Director of Income Tax (Investigation) was valid and therefore the Tribunal was in error in holding that there was no valid search under Section 132 in the assessee‟s case. This Court therefore set-aside the order passed by the Tribunal and remitted the Revenue‟s appeal for fresh adjudication. As regards the assessee‟s cross-objections, it was pointed out before the Court that several other issues had been urged therein which required to be dealt with by the Tribunal, other than the issue relating to inherent lack of jurisdiction. Considering this the Court permitted the assessee to take up all other issues against the validity of the block assessment before the Tribunal in the cross-objections. Thus both the Revenue‟s appeal as well as assessee‟s cross-objections were remitted to the Tribunal for fresh consideration. 7. In the fresh round of proceedings before the Tribunal the assessee in support of its cross-objections took up the contention that the block assessment order was barred by limitation. It was submitted that the said order ought to have been passed on or before 30.06.2002 and since it was passed on 30. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... E. (1) reads as follows: - "The order under section 158BC shall be passed - (a) within one year from the end of the month in which the last of the authorisations for search under section 132 or for requisition under section 132A, as the case may be, was executed in cases where a search is initiated or books of account or other documents or any assets are requisitioned after the eoth day of June, 1995, but before the 1st day of January, 1997; (b) within two years from the end of the month in which the last of the authorisations for search under section 132 or for requisition under section 132A, as the case may be, was executed in cases where a search is initiated or books of account or other documents or any assets are requisitioned on or after the 1st day of January, 1997." 9. In this case since the search was conducted on 28.04.2000, clause (b) is applicable. Under this clause the block assessment ought to have completed within 2 years from the end of the month in which the last of the authorisations for search under Section 132 was executed. It is admitted by both the sides that last execution of the warrant of search was on 26.06.2000. If that is so, the period of 2 y ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ormal period of limitation, then the period of limitation gets extended by such time taken for giving the assessee an opportunity to reopen the earlier proceedings or for rehearing. Section 129 is applicable to normal assessments made under Section 143(3) of the Act as well as the block assessments made under Section 158BC of the Act. The question however is whether there was a change in the incumbent of the office in the assessee‟s case so as to attract Section 129. We are afraid that Section 129 is not attracted to the assessee‟s case. The case of the assessee is one of a transfer under Section 127 from one jurisdiction to another jurisdiction. By order passed under Section 127 of the Act on 15.05.2002, the jurisdiction to assess the assessee was transferred from the ITO, Ward 2(7), Bangalore to Central Circle-25, New Delhi. Apparently because of search several cases had to be centralised and that is the reason for passing the order under section 127 and this has been referred to in Para 3 of the order of the CIT (Appeals). After the assessee‟s case was transferred to Delhi the Assessing Officer at Delhi issued notice under Section 158BC on 11.06.2002 calling fo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e notice under Section 148 to reopen an assessment, is without any basis, either on principle or on authority. The Tribunal has erroneously equated the notice issued under Section 158BC (a) to a notice issued under Section 148 to reopen an assessment and erred in further understanding the words "the time taken in reopening the whole or any part of the proceeding" appearing in clause (iii) of Explanation-1 to mean a reopening of the assessment under Section 148. With respect, the reasoning appears to be convoluted and untenable. The reopening of the proceeding referred to in clause (iii) of Explanation-1 is the reopening of the proceedings for the assessment which have been completed in part by an earlier incumbent of office, and not the reopening of the assessment under Section 148. This much should have been clear to the Tribunal since the said clause in the Explanation clearly refers to the proviso to Section 129. The logic embodied in the clause has been completely missed by the Tribunal. 13. For the above reasons, we answer the substantial question of law in the negative, in favour of the assessee and against the Revenue and allow the appeal of the assessee with no orde ..... X X X X Extracts X X X X X X X X Extracts X X X X
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