2004 (9) TMI 98 - HC - Income Tax

Summary

Issues:
1. Admission of appeal under section 260A of the Income-tax Act, 1961 without formulating substantial question of law.
2. Assessment under section 158BC of the Act without search on the assessee under section 132 of the Act.

Analysis:

Issue 1: Admission of appeal under section 260A without formulating substantial question of law:
The High Court entertained an appeal under section 260A of the Income-tax Act, 1961, against an order passed by the Income-tax Appellate Tribunal. The court noted that the appeal was admitted without formulating any substantial question of law as required by the Act. The court highlighted the procedural requirements under sub-sections (3) and (4) of section 260A, emphasizing the necessity for formulating the substantial question of law before admitting the appeal for final hearing. Despite the absence of a formulated question, the court proceeded to hear the appeal to determine if it involved any substantial question of law. The court clarified that the absence of assistance from the respondent did not relieve them of the obligation to assess the presence of a substantial question of law in the appeal.

Issue 2: Assessment under section 158BC without search on the assessee under section 132:
The primary issue raised by the appellant (assessee) was whether the Assessing Officer erred in assessing the assessee under section 158BC of the Act in the absence of a search on the assessee under section 132 of the Act. The case involved a raid at the residence of the assessee's parents where certain shares were recovered, some of which the assessee claimed to belong to him. The appellant was assessed under section 158BC for the block period, and the objection raised by the assessee was overruled by the Tribunal. The Tribunal relied on the Gujarat High Court's decision in Khandhubhai Vasanji Desai v. Deputy CIT, upholding the assessment under section 158BC. The High Court concurred with the Gujarat High Court's interpretation of sections 158BC and 158BD, finding no flaw in the assessment made by the Assessing Officer. The court dismissed the appellant's argument regarding the time left for filing the return, citing the principles established in the Khandhubhai Vasanji Desai case.

In conclusion, the High Court upheld the assessment made under section 158BC, emphasizing the correct application of the law and the absence of any substantial question of law in the appeal. The appeal was deemed devoid of substance and subsequently dismissed without costs.