TMI Blog2004 (11) TMI 273X X X X Extracts X X X X X X X X Extracts X X X X ..... time to time and adjournment was sought either from the side of the learned Departmental Representative or from the assessee's counsel. Ultimately it was announced during course of hearing on 25th Oct., 2004 that the original warrant of authorisation and the case record be produced by the Departmental Representative for verification. On 25th Oct., 2004, the learned Departmental Representative appeared with original assessment record but warrant of authorisation was not submitted. Therefore, it was again announced that the case is finally adjourned for hearing on 2nd Nov., 2004, and 3rd Nov., 2004, and by that time the Departmental Representative may collect the copy of warrant of authorisation for producing the same at the time of hearing. However, on the date of hearing, the learned Departmental Representative showed his inability to produce the warrant of authorisation as the CIT, Bhopal, and D.I., Investigation, Bhopal. have informed him that the warrant of authorisation in the case under discussion is not readily available. In such circumstances. the hearing was completed without going through the warrant of authorisation. 3. During course of hearing, the additional ground ta ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... arch. In the notice, the assessee was required to file return of income within 16 days from the date of service of the notice. 5. The learned counsel for the assessee drew our attention to the provisions of s. 158BC which are reproduced as under: "158BC. Where any search has been conducted under s. 132 or books of account, other documents or assets are requisitioned under s. 132A, in the case of any person, then,- (a) the AO shall serve a notice to such person requiring him to furnish, within such time, not being less than fifteen days, as may be specified in the notice, a return in the prescribed form and verified in the same manner as a return under cl. (i) of sub-s. (1) of s. 142, setting forth his total income including the undisclosed income for the block period." 6. The definition of the block period has been given in cl. (a) of s. 158B which is as under: "(a) 'block period' means the previous years relevant to ten assessment years preceding the previous year in which the search was conducted under s. 132 or any requisition was made under s. 132A. and includes, in the previous year in which such search was conducted or requisition made, the period upto the date of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... stt. CIT, Investigation, Gwalior, on 21st July, 1998, addressed to the CIT, Gwalior, wherein it is mentioned as under: "Kindly refer to the letter F.No. CIT/Gwl/Judl. 1998-99/1814, dt. 15th July, 1998, on the subject cited above. In this regard it is submitted that the High Court vide orders dt. 20th March, 1998 and 27th March, 1998 in MCC No. 113 of 1998 had extended the period of submission of returns, auditing and accounting by another three months and had directed to pass the assessment order within a period of one month thereafter i.e., after submission of return by the assessee. Accordingly, the assessee has filed return on 17th June, 1998 in the office of the Asstt. CIT, Investigation Circle, Gwalior, and all these group cases have been finalised well before the expiry of limitation after obtaining prior approval of the CIT, vide letters F.No. CIT(G)/Hqrs/S S/RPD/1997-98/287 and F.No. CIT(G)/Hqrs/158BD/97/98/285, dt. 14th July, 1998." 10. From the above, it is seen that the AO has mentioned that the assessee has filed return on 17th June, 1998. However, according to the learned counsel for the assessee, no subsequent return of income was filed. In fact at para 4 of p. 3 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing less than fifteen days, as may be specified in the notice, a return in the prescribed form and verified in the same manner as a return under cl. (i) of sub-so (1) of s. 142, setting forth his total income including the undisclosed income for the block period: Provided that no notice under s. 148 is required to be issued for the purposes of proceeding under this Chapter; (b) The AO shall proceed to determine the undisclosed income of the block period in the manner laid down in s. 158BB and the provisions of s. 142, sub-ss. (2) and (3) of s. 143 and s. 144 shall, so far as may be, apply; (c) The AO, on determination of the undisclosed income of the block period in accordance with this Chapter shall pass an order of assessment and determine the tax payable by him on the basis of such assessment; (d) The assets seized under S. 132 or requisitioned under S. 132A shall be retained to the extent necessary and the provisions of S. 132B shall apply subject to such modifications as may be necessary and the references to 'regular assessment' or 'reassessment' in S. 132B shall be construed as references to 'block assessment'. Sec. 158BC thus, in its main portion, contemplates a s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... quisition of cash was issued on 27th Oct., 1995. Therefore, two separate block proceedings should be initiated by issuing two different notices under s. 158BC. The learned counsel further argued that in s. 158BC the word used is 'requisition' and the wording used in definition of 'block period' is the 'date of such requisition' which means that the date of looted cash actually received by the Department from the police authorities. Therefore, on the date of issue of notice under s. 158BC, i.e., 18th April, 1996, the warrant of authorisation under s. 132A had not been executed since the assets had not come into Department's possession. It came in possession of the Department in the succeeding year i.e., on 16th July, 1996. Hence, the assessment for the block period from 1st April, 1985 to 14th Nov., 1995 made on 31st Oct., 1996 is illegal and bad in law which includes the requisitioned cash from the police authorities on 16th July, 1996. In other words, the cash requisitioned is out of the scope of block period." 11. In the instant case, we arrived at the conclusion that the date on which the assets were really requisitioned and the documents obtained from S.P. (SPE), Gwalior, is ..... X X X X Extracts X X X X X X X X Extracts X X X X
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