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TMI Blog2014 (10) TMI 665X X X X Extracts X X X X X X X X Extracts X X X X ..... e parties states that the litigative facts and the issues arising in both the petitions are identical save the figures and Assessment Years involved. Therefore, as a matter of convenience, we shall refer to the facts in WP No.1227 of 2006 for disposal of both the petitions. 3. Briefly, the relevant facts are as under:- a) On 19 March 1999, the petitioner filed his revised Return of Income for A.Y. 1998-99 declaring a loss of Rs. 16.82 lacs while claiming deduction of Rs. 16.48 crores under Section 80IA of the Act. b) On 30 March 2001 the Assessing Officer passed an order under Section 143(3) of the Act determining income at Rs. 86.45 lacs and deduction of Rs. 15.45 crores under Section 80IA of the Act was allowed. c) On 14 March 2002, a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . Jayavant Indus trail Ltd. and M/s. Jayavant Products Ltd. He has claimed wrong deductions u/s.80IA to the extent of Rs. 10.25 crores on account of bogus sales shown in the names of above mentioned two parties. Hence, I have reasons to believe that the income to the extent of Rs. 10.25 crores have escaped assessment for the AY 1998-99. Notice u/s. 148 is issue after obtaining the approval u/s.151(1) of CIT Central 1, Mumbai vide letter No.CIT(C)/Reopening/200405 dated 24.3.2005." 4. The petitioner objected to the reasons disclosed in support of both the impugned notices. However, the same were rejected for A.Y. 1998-99 by an order dated 5 April 2006 and for A.Y. 1999-2000 by an order dated 18 May 2006 by the Assessing Officer. 5. We hav ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ointed out that in appeal, the block assessment order on the above account has been set aside. However, the Revenue has not accepted the same and appeal has been filed to this Court seeking to sustain the block assessment order. 7. Moreover, Chapter XIV-B of the Act deals with special procedure for assessment of search cases. Section 158BA of the Act therein specially deals with assessment of undisclosed income found during search. The explanation to Section 158BA(2) of the Act clearly states that income assessed in block assessment under Chapter XIV-B of the Act shall not be included in the regular assessment for any previous year which has been included in block assessment. The block assessment order covers the period AY 1996-97 to 2001- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the objections viz. assessment of the additions made in the block assessment was a subject matter of challenge by the petitioner before the Appellate Authority. Therefore, in the event of the Appellate Authority accepting the petitioner's appeal, the time for reopening the assessment for AY 1998-99 and 1999-2000 would expire. It is in these circumstances, the impugned notices were issued to the petitioner. It is submitted that the impugned notices were more in the nature of protective assessments and would come to the aid of the revenue in case the block assessment orders are found not sustainable. This stand of the revenue is in the face of the decision of this Court in DHFL Venture Capital Fund vs. Income Tax Officer and ors. ITO 3 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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