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TMI Blog2013 (7) TMI 849X X X X Extracts X X X X X X X X Extracts X X X X ..... me-tax Act, 1961 (for short hereinafter referred to as "the Act") on July 3, 2000. The period stipulated for issue of notice is one year from the date of filing of the return. The said period expired on May 31, 2000. Therefore, admittedly, the notice issued on July 3, 2000, was beyond the period of limitation. Therefore, the assessee contended that the assessing authority has no jurisdiction to pass any assessment orders for the block period. However, overruling the said objection and holding those provisions are not applicable to the block assessment proceedings he has passed an order on the merits and levied tax under section 113 of the Act. Aggrieved by the same, the assessee preferred an appeal to the Appellate Commissioner who partly a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... for consideration together. The question of limitation is a jurisdictional limitation. If the proceedings are initiated beyond the period of limitation, initiation of proceedings would be without jurisdiction. Then the order of assessment passed by the assessing authority also would be a nullity and non est in the eye of law. In this regard, the assessee relies on the judgment of the apex court in the case of Asst. CIT v. Hotel Blue Moon reported in [2010] 321 ITR 362 (SC) where an identical issue regarding limitation, mandatory nature of the provision under section 143(2) being applicable to block assessment proceedings arose for consideration. The first question which was formulated in the aforesaid judgment reads as under (page 367) : ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ent under section 143(3) only. In case of default in not filing the return or not complying with the notice under section 143(2)/142, the Assessing Officer is authorized to complete the assessment ex parte under section 144. Clause (b) of section 158BC by referring to section 143(2) and (3) would appear to imply that the provisions of section 143(1) are excluded. But section 143(2) itself becomes necessary only where it becomes necessary to check the return, so that where block return conforms to the undisclosed income inferred by the authorities, there is no reason, why the authorities should issue notice under section 143(2). However, if an assessment is to be completed under section 143(3) read with section 158BC, notice under section 14 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... clarification given by the Central Board of Direct Taxes in its Circular No. 717, dated August 14, 1995, has a binding effect on the Department, but not on the court. This circular clarifies the requirement of law in respect of service of notice under sub-section (2) of section 143 of the Act. Accordingly, we conclude that even for the purpose of Chapter XIV-B of the Act, for the determination of undisclosed income for a block period under the provisions of section 158BC, the provisions of section 142 and sub-sections (2) and (3) of section 143 are applicable and no assessment could be made without issuing notice under section 143(2) of the Act. However, it is contended by Sri Shekhar, learned counsel for the Department that in view of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sub-sections (2) and (3) of section 143 strictly for the purpose of block assessments. We do not agree with the submissions of the learned counsel for the Revenue, since we do not see any reason to restrict the scope and meaning of the expression 'so far as may be apply'. In our view, where the Assessing Officer in repudiation of the return filed under section 158BC(a) proceeds to make an enquiry, he has necessarily to follow the provisions of section 142, sub-sections (2) and (3) of section 143. Section 158BH provides for application of the other provisions of the Act. It reads : 'Save as otherwise provided in this Chapter, all the other provisions of this Act shall apply to assessment made under this Chapter'. This is an enabling provis ..... X X X X Extracts X X X X X X X X Extracts X X X X
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