TMI Blog2015 (5) TMI 11X X X X Extracts X X X X X X X X Extracts X X X X ..... nd Arindam Sinha JJ. For the Appellant : MR.M.P.Agarwal, MR.P.Dudheria For the Respondent : MR.R.Bharadwaj ORDER The Court: The subject matter of challenge in the appeal is a judgment dated 11th April, 2008 pertaining to the block period 1990-1991 to 2000-2001. The learned Tribunal held that the assessment was barred by limitation for the following reasons:- On plain reading of the above section it is evident that the A.O. before exercising power u/s.142 (2A) should objectively consider the material available with him and reach a bona fide conclusion/opinion that special audit u/s.142(2A) is essential in view of complexity of accounts coupled with interest of Revenue. Before us, no such document could be produced by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sessment of the block period is to be completed within two years from the end of the month in which the last authorization for the search u/s. 132 was executed. Such period of limitation can be extended only if the conditions prescribed in various clauses of Explanation I below Sec. 158BE(2) are satisfied. It was contended by the Revenue that the conditions prescribed in clause (ii) of Explanation I below Sec. 158BE(2) are satisfied i.e. the accounts of the assessee were got audited u/s.142(2A). We have already examined this contention of the Revenue and we have noticed that there is no order for getting the accounts audited u/s. 142(2A) by the A.O.. The A.O. has simply forwarded such forwarding letter no time limit is prescribed within whi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... st, 2001, which would be within a period of two years, as required under section 158BE (2)(b). It is also not in dispute that the period of two years shall correspondingly be extended by the time which was consumed in carrying out the special audit under Explanation (1) (ii) of section 158BE. In this case the audit commenced on 13th November 2000 and was concluded on 24th April, 2001. Thus 163 days were consumed in the audit. Therefore, the period of 163 days has to be excluded from the period of limitation. It is not also in dispute that the delay is of 150 days under Section 158BE2 (b). If the period of audit comprising of 163 days is to be excluded, the natural consequence will be that the assessment was within time. Mr. Bharadwaj, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessment, notice, summons or other proceeding is in substance and effect in conformity with or according to the intent and purpose of this Act. The reasons assigned by the learned Tribunal are, according to us, not sustainable. For the aforesaid reasons, the order under challenge is set aside. The question formulated above is answered in the negative and in favour of the revenue. However, it appears that the Tribunal did not go into the other points raised by the assessee because the point of limitation was decided in his favour as would appear from paragraph 6.7 of the impugned judgment, which reads as follows:- 6.7. The assessee has also raised various grounds against the additions sustained by the C.I.T.(A). As we have ..... X X X X Extracts X X X X X X X X Extracts X X X X
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