9911796707
TMI Blog2013 (7) TMI 695X X X X Extracts X X X X X X X X Extracts X X X X ..... fidavit of service, in compliance with order dated 5.9.2007, has been filed. No one appears for respondent. We have heard Sri R.K. Upadhyay for the appellant. 2. This Income Tax Appeal under Section 260-A of the Income Tax Act 1961 (in short, the Act), arises out of an order passed by the Income Tax Appellate Tribunal dated 30.06.2004, in respect of Block Period 1.4.1991 to 16.02.2001. The appeal has been preferred on the following substantial questions of law. "(1) Whether on the facts and in the circumstances of the case, decision of the Tribunal was not against the law because it was passed after ignoring the specific provisions of Explanation-2 of sub-section 2 of Section 158 BC of the Act with regard to execution of warrant? (2) Whether on the facts and in the circumstances of the case, the Tribunal was correct in quashing the Block assessments by pointing out certain defects in the notice issued by the AO u/s 158 BC of the Act though such defects were curable in the light of provisions of Section 292-B of the Act." 3. Brief facts, giving rise to this appeal are that on 2.4.2000, the police of Palanpur, District Banskantha of Gujarat intercepted a Jeep No. HP-03/3313, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... was made on 17.02.2001 of Rs.20,771/- is after the block period i.e. after 16.02.2001, and hence the addition made of Rs.20,771/- in the Block Assessment (block period 1.4.90 to 16.2.2001) for the payment made on 17.02.2001, was not justified. The Assessing Officer, was however, free to consider this amount of R.20,771/- in the regular assessment. The addition to the extent of Rs.59,500 (Rs.19,500/- + Rs.40,000/-) was confirmed, and the balance addition of Rs.20,771/- being the payment made on 17.02.2001 was deleted. 8. The Income Tax Appellate Tribunal, Agra Bench, 'SMC', Agra by the impugned order dated 30.06.2004, found that the notices on the basis of which block assessment of 10 years were made i.e. from 1.4.1990 to 16.2.2001, was void ab-initio. The block period in case of requisition under section 132-A ends on the date of issue of the summons under section 132-A, and not on the date of execution. The Tribunal was of the opinion that the Block period in the present case ended 3.4.2000, when the summons were issued, and not on 16.02.2001, when the department received the goods i.e. the summons were deemed to have been executed. 9. The Tribunal relied on Explanation- 2 (b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hed. b) The block period has not been correctly mentioned. c) The pre-requisite mandatory requirement of providing a period "not being less than 15 days" has not been complied with because all theses persons were required to furnish the returns of undisclosed income "within a period of 15 days" which is definitely less than the period as specified by the term "not being less than 15 days". 11. Sri R.K. Upadhyay, learned counsel appearing for the appellant-department submits that findings recorded by the Tribunal are incorrect in law. He submits that in view of explanation 2 to sub section (2) of Section 158-BC of the Act, the period of limitation for completion of block assessment of 10 years, will begin to run from the date of actual receipt of goods or assets by the authorized officer. He has relied on T.O. Abrahim and Co. and another Vs. Assistant Director of Income-tax (Investigation) and others [238 ITR 501], in which it was held, on interpretation of explanation 2, as follows:- "Learned senior standing counsel, Mr. Menon, for the revenue submitted that the petitioner has preferred a statutory appeal and all these points can be canvassed before the appellate authority. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ear in which the search was conducted under Section 132 or any requisition was made under Section 132A and also includes the period upto the date of commencement of such search or date of such requisition in the previous year in which the said search was conducted for requisition was made: Provided that where the search is initiated or the requisition is made before the 1st day of June, 2001, the provisions of this clause shall have effect as if for the words "six assessment years", the words "ten assessment years' had been substituted. (b) 'undisclosed income' includes any money buillion, jewellery or other valuable article or thing or any income based on any entry in the books of account or other documents or transactions, where such money, bullion, jewellery, valuable articles thing, entry in the books of account or other document or transaction represents wholly or party income or property which has not been or would not have been disclosed for the purpose of this Act or any expense, deduction or allowance claimed under this Act which is found to be false. 14. Section 158 BC provides for procedure for block assessment. The time limit for completion of block assessment is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... participation of the assessee will not validate the reassessment proceeding if the notice is invalid, is of no help, in view of the fact that the question of validity of notice under Section 147 of the Act is not in issue. The only defect which could be pointed out is that the assessment year was not mentioned in the reasons recorded by the Assessing Officer. Unless it is shown that assessee was misled by not mentioning the assessment year in the reasons recorded, we are of the view that if the reasons recorded relate to a particular year, the reassessment proceeding initiated relate to that particular year and the assessee participated in the reassessment proceeding without raising any objection, such an objection cannot be raised by the assessee at a subsequent stage of the proceeding. In view of the above, the order of the Tribunal cannot be sustained. In the result the substantial questions of law as framed in the memo of appeal are decided in favour of the Department and against the assessee by holding that the reasons recorded by the Assessing Officer are not vitiated by not mentioning the assessment year therein. Since the Tribunal has not examined the case on merit, the ma ..... 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