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TMI Blog2007 (4) TMI 613X X X X Extracts X X X X X X X X Extracts X X X X ..... le, Pathankot has, in view of the facts and circumstances of the case, grossly erred in law in passing order under section 144 and in making addition of Rs. 10 lakhs in account of 2 FDRs made in the name of Sh. Anil Kumar and Sh. Rajiv Kumar. 2. That the observations made are against facts and are based on surmises and conjectures and do not afford legal justification to the addition made. 3. That the peak of Rs. 54 lakhs worked out on the basis of 21 accounts included the 2 FDRs in question and as such separate addition of Rs. 10 lakhs was not called for. In any case, the addition made is unjust, unlawful and against the directions of the hon’ble Incometax Appellate Tribunal. 4. That the learned Commissioner of Income-tax has grossly fa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er has been passed by the Asst. Commissioner of Income-tax in pursuance of the order dated July 29, 2004, of the Income-tax Appellate Tribunal, Amritsar Bench in IT(SS)A.No.5(ASR)/1999 for the block period April 1, 1986 to September 1, 1996 (a copy placed at pages 172 to 174 of the paper book). He submitted that the said set aside order has been passed on March 23, 2006 (a copy placed at pages 175 to 182 of the paper book). He submitted that Chapter XIV inserted in the Act is a code in itself. He submitted that in this case, the Income-tax Appellate Tribunal passed the order on July 29, 2004, and the set aside assessment has been completed on March 23, 2006. He submitted that search in this case took place on September 11, 1996. Therefore, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessment year” as to mean a period of 12 months commencing on the 1st day of April every year. He submitted that in the present case, the block assessment covers 10 assessment years. He referred to clause (a) of section 158B which defines “block period” as to mean the period comprising previous year relevant to 10 assessment years preceding the previous year in which the search was conducted under section 132 or any requisition was made under section 132A and also covers the period up to the date of commencement of search or date of requisition. He submitted that section 153(2A) is not applicable to this case because the block assessment covers the period of more than 10 assessment years. Thus, he contended that the period of limitation f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pleted by the Assessing Officer was set aside by the Tribunal vide its order dated July 29, 2004, on a limited issue. No doubt, section 158BE of the Act provides limitation within which the block assessment is to be completed. There is no section in Chapter XIV which provides limitation period for completion of set aside block assessment. However, section 158BH of the Act specifically provides that save as otherwise provided in the Chapter, all other provisions of this Act shall apply to assessment made under Chapter XIV. In this regard, we consider it appropriate to reproduce hereunder section 158BH : “158BH: Save as otherwise provided in this Chapter, all other provisions of this Act shall apply to assessment made under this Chapter.” A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... years), the remaining provisions of the Act which deal with the period within which set aside assessment is to be completed would be applicable. Section 153(2A) prescribes the period within which set aside assessments under sections 250, 254, 263 and 264 are to be completed. As per this section, the set aside assessment is to be completed before the expiry of one year from the end of the financial year in which the order for setting aside the assessment was received by the Chief Commissioner of Income-tax or Commissioner of Income-tax, as the case may be. In our view, section 153(2A) is clearly applicable to a block assessment also. The artificial distinction drawn by the learned authorised representative that section 153(2A) relates to fre ..... X X X X Extracts X X X X X X X X Extracts X X X X
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