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TMI Blog2012 (2) TMI 32X X X X Extracts X X X X X X X X Extracts X X X X ..... eal, the notice could have been given only upto 31.10.2007 as on 1.4.2008 the limitation period had already expired. Omission on the part of the A.O. to issue notice u/s 143(2), therefore, cannot be a procedural irregularity and the same cannot be dispensed with. Where the legislature intended to exclude certain provisions from the ambit of section 158BC(b), it has done so specifically. Thus, when section 158BC(b) specifically refers to applicability of the proviso hereto, it cannot be excluded, therefore, section 292BB cannot come to Revenue's rescue. Even otherwise, section 292BB was effective from 1.4.2008 , whereas the return u/s 158BD was filed by the assessee on 12.10.2006 and notice u/s 143(2) was issued beyond period of limit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... D of the Act were argued to be bad in law as the proceedings were initiated beyond the limitation period and no proper satisfaction was recorded. The learned counsel for the assessee placed reliance upon the following decisions :- 1. CIT v. Parveen Fabrics (P.) Ltd. [2011] 198 Taxman 463/9 taxmann.com 304 (Punj. Har.) 2. Asstt. CIT v. Kishore Lal Balwant Rai [2007] 17 SOT 380 (Chd.) 3. Manoj Aggarwal v. Dy. CIT [2008] 113 ITD 377 (Delhi) (SB) 4. Harish Moolchandani 12 ITJ 639 (Indore) On the issue of applicability of section 292BB of the Act, it was contended by the learned counsel for the assessee that the section was introduced by the Finance Act, 2008 only, therefore, it is applicable prospectively. 3. We have consi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ck period. The assessee filed the return for the block period on 12.10.2006 showing the undisclosed income as nil. Subsequently, notice u/s 143(2) was issued on 24.7.2008. The assessee has challenged the validity of this notice on the plea that it was issued beyond the stipulated time limit and, therefore, the proceedings initiated u/s 158BD are not sustainable in law. Identical plea was raised before the ld. first appellate authority who after considering various judicial pronouncements like Asstt. CIT v. Hotel Blue Moon [2010] 321 ITR 362/188 Taxman 113 (SC), Smt. Harbans Kaur Bhatia v. CIT [2005] 274 ITR 298/145 Taxman 54 (MP), CIT v. M.S. Agrawal (HUF) 11 ITJ 721 (MP), Special Bench decision (Del) in the case of Manoj Aggarwal (supra) e ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he issue of initiation of proceedings u/s 158BD of the Act and recording of proper satisfaction by the Assessing Officer by following various decisions as mentioned hereinabove including the decision from Hon'ble Apex Court in Hotel Blue Moon's case (supra), Hon'ble jurisdictional High Court in Smt. Harbans Kaur Bhatia's case (supra) and M.S. Agrawal's (supra). Before us, the assessee through its cross objection has challenged the validity of notice issued u/s 143(2) beyond the period of limitation and application of section 292BB of the Act. We find that section 292BB was introduced by the Finance Act, 2008, therefore, the amendment is applicable only with effect from 1.4.2008 which has been further clarified by the CBDT Circular. Prior to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the methodology for computation of undisclosed income of the block period whereas section 158BC prescribes the procedure for making the block assessment of the searched person. Section 158BD of the Act enables assessment of any person, other than the searched person and section 158BE sets the time limit for completion of block assessment. The scheme of the block assessment has been explained by Circular No. 717 dated 14th August, 1995 in paragraph 39.9 (1995) 215 ITR (St.) 70, 98. Clause (e) of the circular clarifies the procedure for making block assessment. Clause (e) is extracted hereunder :- "(e) Procedure for making block assessment : (i) The Assessing Officer shall serve a notice on such person requiring him to furnish within such t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ction 143(1) are excluded, therefore, if the assessment is to be completed u/s 143(3) read with section 158BC notice u/s 143(2) is a mandatory requirement, that too, within the stipulated period. Omission on the part of the Assessing Officer to issue notice u/s 143(2), therefore, cannot be a procedural irregularity and the same is not cuarable, therefore, the requirement of notice u/s 143(2) cannot be dispensed with. Where the legislature intended to exclude certain provisions from the ambit of section 158BC(b), it has done so specifically. Thus, when section 158BC(b) specifically refers to applicability of the proviso hereto, it cannot be excluded, therefore, we do not agree with the assertion of the learned Sr. DR that section 292BB comes ..... X X X X Extracts X X X X X X X X Extracts X X X X
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