9911796707
TMI Blog2006 (4) TMI 79X X X X Extracts X X X X X X X X Extracts X X X X ..... 2A) of the "Act" vide annexure C are called in question in this writ petition. This court does not find any illegality in the notice annexure B issued under section 158BC of the "Act". By issuing the said notice, the Assessing Officer has merely requested the petitioner to prepare a true and correct return of his total income including the undisclosed income assessable for the block period. Thus, it is open for the petitioner to file his statement in answer to the said notice at annexure B. Hence, the challenge to notice at annexure B must fail and no interference is called for by this court. In so far as the notice at annexure C issued under section 142(2A) of the "Act" by the Assistant Commissioner of Income-tax is concerned, the same i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ads thus: "(2A) If, at any stage of the proceedings before him, the Assessing Officer, having regard to the nature and complexity of the accounts of the assessee and the interests of the Revenue, is of the opinion that it is necessary so to do, he may, with the previous approval of the Chief Commissioner or Commissioner, direct the assessee to get the accounts audited by an accountant, as defined in the Explanation below sub-section (2) of section 288, nominated by the Chief Commissioner or Commissioner in this behalf and to furnish a report of such audit in the prescribed form duly signed and verified by such accountant and setting forth such particulars as may be prescribed and such other particulars as the Assessing Officer may require. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... materials disclosing the undisclosed income of the assessee were handed over to the Assessing Officer on January 27, 2003. The same is also borne out from the records maintained by the respondent. The Assessing Officer on receipt of search material has observed amongst others in his report as under: "The assessee has not maintained proper books of account. In the absence of up to date statements of accounts for various years, it would be difficult to pass the assessment order. There are several bank transactions of which the position as to whether the assessee has accounted in his books or not, is not known. Keeping in view the complex nature of accounts involved and also the interests of the Revenue, I propose to get the accounts of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... which a search is authorised under this section or which may have been completed on or before such date and includes also all proceedings under this Act which may be commenced after such date in respect of any year." It is clear from the said Explanation that after search, the proceedings awaiting assessment can be safely termed as pending proceedings for the purpose of the Act. The special procedure for assessment in search cases is prescribed in Chapter XIV-B of the "Act". Section 158BH of the "Act" makes it further clear that all the provisions of the Income-tax Act shall apply to assessment made under Chapter XIV-B. Thus, the provisions of section 132 including Explanation 2 and section 142(2A) of the "Act" shall apply to the procedure ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed earlier, the Assessing Officer, was entrusted with the file on January 27, 2003, i.e., prior to the date of issuing of notice at annexure C under section 142(2A) of the Act. The assessment proceedings in this case are in the nature of suo motu proceedings and they are commenced by the respondents by initiating search and seizure proceedings. The assessment proceeding cannot be independent of the search and seizure proceedings under Chapter XIV-B of the Act, which Chapter specifically deals with special procedure relating to assessment in search cases. In view of the same, it cannot be said that no proceedings are pending on the date of passing of order under section, 142 (2A) of the Act. Hence, I do not find any illegality in the impugne ..... X X X X Extracts X X X X X X X X Extracts X X X X
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