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TMI Blog2016 (8) TMI 960X X X X Extracts X X X X X X X X Extracts X X X X ..... ssing Officer, initially, issued a Notice u/s.158BC of the Act to the assessee on 17.10.1996 instead of Notice u/s.158BD of the Act. Subsequently, the A.O. issued a fresh Notice u/s.158BD on 29.08.1997 in supersession of the Notice issued earlier u/s.158BC of the Act. In response to the Notice, the assessee filed return of income dated 29.09.1997 declaring "Nil" income. The A.O. proceeded to complete the block assessment u/s.158BD on 01.12.1997 determining undisclosed income at Rs. 1,32,20,000/; making addition of Rs. 66.20 Lacs on account of "on money" receipt on sale of flats and Rs. 66 Lacs on account of unexplained cash payment to a third party for acquiring development rights. 3. Being aggrieved by the assessment order, the assessee filed appeal before the Tribunal. The Tribunal allowed the appeal filed by the assessee vide impugned order dated 28.04.2006. Hence, this Tax Appeal at the instance of Revenue. 4. At the outset, Mr. Manish Shah, learned counsel for the assessee, submitted that the controversy raised in this appeal is already settled by a judgment of this Court passed in Tax Appeal No.1449/2006 decided on 08.07.2016. For ready reference, the said judgment is repro ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... for proceedings to finalize the assessment u/s.158BD of the Act. Though time for making assessment was available up to 30.09.1998 since Notice u/s.158BD r/w. Section 158BC(a) issued on 29.08.1997 was served on 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 motion by issuing a Notice u/s.158BD of the Act rather the Notice for putting the assessment proceedings in motion has to be issued u/s.158BC of the Act. 5.1 Learned counsel Mr. Shah further submitted that the first Notice u/s.158BC of the Act w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ticle, thing, entry in the books of account or other document or transaction represents wholly or partly income or property which has not been or would not have been disclosed for the purposes of this Act [or any expense, deduction or allowance claimed under this Act which is found to be false]". 8. Sections 158BC and 158BD of the Act are machinery provisions. Section 158BC of the Act provides the procedure for block assessment and Section 158BD of the Act provides for assessments in the case of an undisclosed income of any other person. The said sections are relevant for the purpose of this case and, therefore, they are extracted. They read as under: "Section 158BC. PROCEDURE FOR BLOCK ASSESSMENT. Where any search has been conducted under section 132 or books of account, other documents or assets are requisitioned under section 132A, in the case of any person, then, [( a) The Assessing Officer shall, (i) In respect of search initiated or books of account or other documents or any assets requisitioned after the 30th day of June, 1995 but before the 1st day of January, 1997 serve a notice to such person requiring him to furnish within such time not being less than fifteen day ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on 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 word from the provisions of instant meaning of the sections. It may be mentioned that the foremost principle of interpretation of fiscal statutes in every system of interpretation is the rule of strict interpretation which provides that where the words of the statute are absolutely clear and unambiguous, recourse cannot be had to the principles of interpretation other than the literal rule. 11. Admittedly, the provisions of Section 158BD has not prescribed any timeframe to be allowed to the assessee for complying with the Notice. If we analyze the provisions of Sections 158BC, 158BD and 158BE of the Act, it would be evident that Notice u/s.158BC of the Act has to be issu ..... X X X X Extracts X X X X X X X X Extracts X X X X
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