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TMI Blog2011 (12) TMI 596X X X X Extracts X X X X X X X X Extracts X X X X ..... objection, the assessee has raised the issue of limitation in passing the order u/s 158BD of the Act. Since the issue of limitation goes to the very root of the matter, we take up the cross objection first. 3. Shri Z.T. Zacharia, the ld.representative for the assessee submitted that there was a search on 03-03-1999 at the premises of Shri PK Kurien. On the basis of the material found in the course of search proceedings in the case of Shri P.K Kurien, the proceedings u/s 158BD was initiated in the case of the assessee. According to the ld.representative, the block assessment proceedings u/s 158BC was completed on 30-03-2001 in the case of Shri P.K Kurien. The notice u/s 158BD dated 22-04-2003 was served on the asseessee on 22-04-2003 after ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in the Income-tax Act fixing the time limit for issuing notice u/s 158 of the Act in respect of the person other than searched, but, it does not mean that the assessing officer can issue the notice at his sweet will at any time. Finality of the proceedings cannot be seen so lightly. Section 132(9A) enables the authorized officer to examine the books of account or other documents or any money, bullion, jewellery or other valuable articles and if it is not relatable to any person against whom search was conducted, he has to hand over the same to the concerned assessing officer having jurisdiction over such person within the period of 60 days from the date on which the last authorization for the search was executed. Therefore, u/s 132(9A) of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ons of section 158BD are thus inextricably interlinked and intertwined with section 158BC and they are like Siamese twins. In the circumstance, it is not possible to view section 158BD in isolation and de hors section 158BC as that would militate against the intention behind the enactment of Chapter XIV-B to provide for a complete code for assessment of undisclosed income as different from the assessment of normal income in regular assessment. The concept of undisclosed income as different from what we may call as 'normal' or 'regular' income is at the very core of this chapter. 111. It is in this context that we have to view the provisions of section 158BD of the Act. It is not as if the said provision can be invoked at the whims of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f the Assessing Officer assessing the person searched does not find any undisclosed income at all, or does not arrive at any finding in respect of the same or having arrived at such finding does not hand over the material to the second Assessing Officer, the provisions of section 158BD do not come into operation at all." The Special Bench again observed as follows on page 484 at paragraph 114 & 115: 114. Section 158BE provides for time limit for completion of block assessment. It stipulates that the order under section 158BC shall be passed within two years from the end of the month in which the last of the authorization for search under section 132 was executed or for requisition under section 132A a the case may be and so the order en ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f the assessment in respect of the person against whom search was carried out is barred by limitation. A similar view was taken by Hyderabad Bench of this Tribunal in the case of Dy.CIT, Cir. Vs Shri P Venkata Ramana in ITSSA No.08/HYD/2010 order dated 11-02-2011. A similar view was also taken by the Gujarat High Court also in the case of Khandubhai Vasanji Desai & Ors vs DCIT (1999) 236 ITR 73 (Guj) 7. In view of the above, in our opinion, the block assessment order passed against the assessee u/s 158BD is barred by limitation. Accordingly, the same is quashed. 8. In view o the above, it is not necessary to go into the merit of the contentions raised by the revenue in the revenue's appeal. 9. Accordingly, the revenue's appeal in ITSS A ..... X X X X Extracts X X X X X X X X Extracts X X X X
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