GST Helpdesk   Subscription   Demo   New User   Login      
Tax Management India .com
TMI - Tax Management India. Com
Extracts
Home List
← Previous Next →

2016 (8) TMI 960 - GUJARAT HIGH COURT

2016 (8) TMI 960 - GUJARAT HIGH COURT - TMI - Assessment for the block period - ITAT held that the assessment for the block period was barred by limitation on the ground that initial notice, wrongly issued under Section 158BC was a valid notice - Held that:- In the present case, the first Notice u/s.158BC of the Act was issued to the assessee on 17.10.1996, which was served upon the assessee on 04.11.1996. Therefore, assessment could have been framed latest by 30.11.1997. However, on 29.08.1997, .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

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 o .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

Thus, we answer the question in the affirmative, i.e. in favour of the assessee and against the Revenue. - TAX APPEAL NO. 1063 of 2009 - Dated:- 4-8-2016 - MR. KS JHAVERI AND MR. G.R.UDHWANI, JJ. FOR THE APPELLANT : MR NITIN K MEHTA, ADVOCATE FOR THE OPPONENT : MR MANISH J SHAH, ADVOCATE ORAL JUDGMENT (PER : HONOURABLE MR.JUSTICE KS JHAVERI) 1. This Tax Appeal u/s.260A of the Incometax Act, 1961 is filed against the order dated 28.04.2006 passed by the Income Tax Appellate Tribunal, Ahmedabad in .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ase of M/s. Gokul Corporation, the assessment was to be completed in assessee s case u/s.158BC r/w. 158BC of the Act. The Assessing 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 .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

4.2006. 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 reproduced hereunder; 1. This Tax Appeal u/s.260A of the Incometax Act, 1961 is filed against the order dated 19.05.2006 passed by the Incometax Appellate Tribunal, Ahmedaba .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ents 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 ₹ 50 Lacs. In the first instance, the A.O. issued Notice u/s.158BC on 04.11.1996. Subse .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

al raising the ground of validity of the Notice issued u/s.158BD amongst other grounds. The Tribunal allowed the appeal by order dated 19.05.2006 whereby, it declared the assessment itself void ab initio. Hence, this appeal at the instance of Revenue. 4. Mr. Nitin Mehta, learned Standing Counsel appearing for the Revenue, took us through the provisions of Section 158BC, 158BD and 158BE of the Act and submitted that the Tribunal committed serious error in law in allowing the appeal filed by the a .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

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 give .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

of the provisions of Section 158BE(ii) of the Act, the assessment should have been made before the end of one year from the end of the month in which Notice u/s.158BC of the Act was served, i.e. latest by 30.11.1997. However, since the assessment was framed on 24.12.1997, it is illegal and bad in law being barred by time. 5.2 It was further submitted that the proceedings initiated by way of Notice u/s.158BC of the Act issued on 17.10.1996 having been concluded by the A.O. as a result of withdra .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

rder to resolve the controversy on hand, certain provisions of the Act require to be noticed by us. Chapter XIVB of the Act is a special provision carved out by the Legislature for 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 .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

58B(b) is necessary and, therefore, it is noticed. The same reads as under: Undisclosed income" includes any money, bullion, jewellery or other valuable article or thing or any income based on any entry in the books of account or other documents or transactions, where such money, bullion, jewellery, valuable article, 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 .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

E 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 fi .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

e 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 further that a person who has furnished a return under this clause shall not be entitled to file a revised return;] (b) The Assessing Officer shall proceed to determine the undisclosed income of the block period in the manner laid down in section 158BB and the provisions of section 142, subsections (2) and (3) of section 143 [sec .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

sessing Officer is satisfied that any undisclosed income belongs to any person, other than the person with respect to whom search was made under section 132 or whose books of account or other documents or any assets were requisitioned under section 132A then, the books of account, other documents or assets seized or requisitioned shall be handed over to the Assessing Officer having jurisdiction over such other person and that Assessing Officer shall proceed [under section 158BC] against such oth .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

letion 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 th .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

D and 158BE of the Act, it would be evident that Notice u/s.158BC of the Act has to be issued for making an assessment under Chapter XIVB in both types of cases, viz. cases covered by the provisions of Section 158BA as well as covered u/s.158BD of the Act, both before the amendment in Section 158BD and also after the amendment. 12. In the present case, the first Notice u/s.158BC of the Act was issued to the assessee on 17.10.1996, which was served upon the assessee on 04.11.1996. Therefore, asse .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

 

 

 

 

 



|| Home || Acts and Rules || Notifications || Circulars || Schedules || Tariff || Forms || Case Laws || Manuals ||

|| About us || Contact us || Disclaimer || Terms of Use || Privacy Policy || TMI Database || Members || Site Map ||

© Taxmanagementindia.com [A unit of MS Knowledge Processing Pvt. Ltd.] All rights reserved.

Go to Mobile Version