9911796707
TMI Blog2013 (12) TMI 1308X X X X Extracts X X X X X X X X Extracts X X X X ..... g an income of Rs.16,59,595/-. On the admitted tax liability on the income so shown in the return in Form 2-B, amounting to Rs.9,95,757/-, was discharged by payment. On the enquiries made by the Assessing Officer, thereafter, through the notices issued under Section 142 (1) of the Act, prior to the filing of "return" as aforesaid as also thereafter, a block assessment order was passed on 25/28th May, 1999 under section 158BC, wherein the ''undisclosed income' was computed at Rs.74,22,037/-. A chronology of ''dates' and ''events' during the intervening period, and which have got a bearing on the issues involved in this appeal is given hereunder:- Sl.No. Date Events 1. 14.5.1997 Search took place at the business premises of the assessee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of Rs.16,59,595/-. 8. 13.11.1998 Notice under section 142 (1) along with questionnaire issued. 9. 23.11.1998 Inspection of seized material took place. 10. 18.12.1998 Again inspection of seized material took place 11. 5.1.1999 Reply to questionnaire was filed 12. 11.1.1999 to 5.5.1999 Statements of various persons were recorded by the Assessing Officer. 13. 5.5.1999 Fact of the case discussed with Jt. CIT 14. 7.5.1999 Facts of the case discussed with Jt. CIT 15. 11.5.1999 The draft Assessment order sent to the Joint CIT (C), and the case was discussed with Joint CIT (C) 16. 12.5.1999 and 13.5.1999 Facts of the case discussed with Joint CIT (C) 17. 17.5.1999 Letter from Joint CIT (C) dated 13.5.1999 issued 18. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and service of notice under section 143 (2) (on the assessee) has been made absolute, was wholly redundant having no bearing on the applicability of the said provision on the block assessment? (v) Whether on the facts and circumstances of the case, the Tribunal was legally correct in holding that the block assessment order dated 25/28th May, 1999 was not adversely affected by non-issuance/ service of notice under Section 143 (2) on the assessee and in upholding the validity of the block assessment order?" Shri Ashish Bansal submits that in this case admittedly the notice under Section 143 (2) of the Act was not issued. For that purpose he relies upon the findings recorded by the Income Tax Appellate Tribunal in para 5 of the impugned jud ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... be dispensed with. Shri R.K. Upadhyay, learned counsel for the department submits that in the present case the petitioner had participated in the assessment proceedings. He relies upon para 23 of the assessment order in which the assessee admitted that some of the transaction may not have been entered in the regular books of accounts. He unsuccessfully tried to explain the excess stocks of gold, which was found in his possession. The questions of law raised in this appeal are covered by the judgment in Hotel Blue Moon's case (Supra). Once it is admitted that the assessing officer has repudiated the return filed by the assessee under Section 158BC of the Act, the entire proceedings in the absence of notice under Section 143 (2) of the Act ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... foundation for jurisdiction. Such notice is required to be served on the person, who is found to have undisclosed income. The requirement of notice under Section 143 (2) cannot be dispensed with. Section 292BB is a rule of evidence, which validates the notice in certain circumstances. The newly inserted Section 292BB provides that where an assessee has appeared in any proceedings or cooperated in any inquiry relating to an assessment or reassessment, it shall be deemed that any notice under any provision of this Act, which is required to be served upon him, has been duly served upon him in time in accordance with the provisions of this Act and such assessee shall be precluded from taking any objection in any proceeding or inquiry under the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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