2001 (4) TMI 188 - AT - Income Tax

Summary

Issues:
Maintainability of appeal before CIT(A) under section 158BC.

Analysis:
The appeal before the Appellate Tribunal ITAT INDORE was against the order of CIT(A), Bhopal, regarding the maintainability of the appeal before CIT(A) under section 158BC. The case involved a search conducted under section 132 at the residential premises of an individual, leading to the seizure of a diary marked as Annexure 'A/1'. The diary indicated suppression of production by the appellant-company, resulting in the inference of concealed income during the assessment year 1995-96. Subsequently, an order was passed under section 158BD determining the appellant's income for the block period. The CIT(A) dismissed the appeal on the grounds that the first appeal against the order under section 158BC lies before ITAT if the search was conducted under section 132.

The appellant contended that no search was conducted at their premises, thus challenging the applicability of sections 132 and 132A. The argument was based on the interpretation of clause (da) of sub-section (2) of section 246, emphasizing that appeals against the order under section 158BC were to be filed before the CIT(A) only if the search was initiated under section 132 or related provisions. The appellant also referred to section 158BE regarding time limits for block assessments. The Departmental Representative (D.R.) argued that once a search is conducted, the provisions of the chapter apply accordingly, and the appeal should have been filed before ITAT if the search was conducted before a specific date.

The Tribunal analyzed the contentions and held that even if no search was conducted at the appellant's premises, block assessment could be framed under section 158BD if documents related to another person were handed over to the assessing authority. The right of appeal was provided under section 153(1)(b) for assessments framed under section 158BC. The Tribunal rejected the argument that the appellant could have filed an appeal under a general clause, emphasizing the specific right of appeal under section 253(1)(b). The delay in filing the appeal was not condoned as the appeal filed was against the order of CIT(A) and not under section 253(1)(b). The Tribunal confirmed the order of CIT(A) but allowed the appellant to file an appeal before ITAT.

In conclusion, the appeal was dismissed, and the Tribunal upheld the order of CIT(A) regarding the maintainability of the appeal under section 158BC. The appellant was granted the liberty to file an appeal before the Tribunal.