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TMI Blog2016 (8) TMI 214X X X X Extracts X X X X X X X X Extracts X X X X ..... essment passed u/s.158BD r/w. Section 158BC in the instant case was barred by time and therefore, void ab initio ?" 2. The facts in brief are that a search operation under Section 132 of the Act was carried out in the premises of M/s. Gokul Corporation and its Partners on 21.09.1995 and certain incriminating documents pertaining to the assesseefirm were traced in the said search. The assessment in the present case was consequent upon the statements recorded during the proceedings of the aforesaid search. On 24.12.1997 assessment was completed u/s.158BC(c) r/w. Section 158BD and 158BA for the block period - 01.04.1985 to 31.03.1995 and 01.05.1995 to the date of search, i.e. 21.09.1995, on an undisclosed income of Rs. 50 Lacs. In the first i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n the assessee on 02.09.1997, the A.O. completed assessment well in time, i.e. on 24.12.1997. Hence, the action of the A.O. in initiating proceedings u/s.158BD of the Act was legal and well within the period of limitation. 5. Mr. Manish Shah, learned counsel for the assessee, submitted that Section 158BC of the Act prescribes the issuance of a Notice requiring the person to furnish their returns of undisclosed income. Insofar as provisions of Section 158BD of the Act are concerned, it does not prescribe the issuance of any Notice as such because it only gives jurisdiction to the A.O. over the case of "such other person" to proceed with the assessment proceedings under Chapter XIVB of the Act and the A.O. cannot put the proceedings in motio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the purpose of assessment in cases pertaining to Sections 132 and 132A of the Act. The said Chapter was introduced by the Finance Act, 1995 with effect from 01.07.1995 and comprises Sections 158B to 158BH of the Act. The provisions under this Chapter were made inapplicable in case of search initiated under Section 132 or Section 132A after 31.05.2003 by introduction of an amendment to the Chapter as Section 158BI vide the Finance Act, 2003 with effect from 01.06.2003. The lis before us requires examination of the provisions of the said Chapter, particularly, Section 158BD. 7. Section 158B of the Act is the dictionary clause. It provides for the definition of "block period" and "undisclosed income". For the purpose of this case, a referenc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... such person requiring him to furnish within such time not being less than fifteen days; (ii) In respect of search initiated or books of account or other documents or any assets requisitioned on or after the 1st day of January, 1997, serve a notice to such person requiring him to furnish within such time not being less than fifteen days but not more than fortyfive days, as may be specified in the notice a return in the prescribed form and verified in the same manner as a return under clause (i) of subsection (1) of section 142, setting forth his total income including the undisclosed income for the block period: Provided that no notice under section 148 is required to be issued for the purpose of proceeding under this Chapter: Provided f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ment of a person searched under Section 132 of the Act or books of accounts, other documents or assets requisitioned under section 132A. The limitation for the purpose of completion of the block assessments for the purpose of Section 158BC of the Act is as provided under Section 158BE(1)(a) of the Act, which is the time limit for completion of block assessments. Section 158BD of the Act provides for "undisclosed income" of any other person. 10. Before we proceed to explain the said provision, we intend to remind ourselves of the first or the basic principles of interpretation of a fiscal legislation. It is time and again reiterated that the Courts, while interpreting the provisions of a fiscal legislation, should neither add nor subtract a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sessee of having withdrawn the Notice u/s.158BC of the Act, meaning thereby, that the proceedings initiated on 17.10.1996 was valid for all intent and purposes but, stood concluded on 29.08.1997. Therefore, there was no question of reviving those proceedings by way of issuing a fresh Notice under any other Section of the Act. On this count also, there could not have been any assessment on 01.12.1997. Thus, the Revenue's claim that Notice u/s.158BD of the Act issued on 29.08.1997 was a valid Notice and that the consequential assessment framed on 24.12.1997 was within limitation cannot be accepted and is void ab initio being barred by time. Thus, the action of the A.O. of withdrawing the Notice u/s.158BC and issuing fresh Notice u/s.158BD of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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