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TMI Blog2011 (2) TMI 1418X X X X Extracts X X X X X X X X Extracts X X X X ..... to a person other than the person searched. Referring to section 292BB of the Act, the learned DR pointed out that even if there is a delay in issue of notice, the assessee has not objected to the issue of notice before the Assessing Officer and, therefore, the assessee is precluded from taking any objection with regard to issue of notice u/s. 158BC of the Act. The learned DR placed her reliance on the decision of the Amritsar Bench of this Tribunal in Vijay Sehgal (HUF) vs. ACIT (2006) 100 ITD 560 and also the judgement of the Gujarat High Court in Khandubhai Vasanji Desai & Ors. vs. DCIT (1999) 236 ITR 73. 3. On the contrary, Shri Chaitanya Kumar, the learned counsel for the assessee submitted that a search was conducted in the residential premises of Sri A. Narayanaswamy on 2.11.2001. Therefore, in view of limitation provided u/s. 158BC the Assessing Officer has to complete the block assessment in the case of Sri A. Narayanaswamy on 2.11.2003. The notice u/s. 158 r.w.s. 158BC was issued to the present assessee who is not subjected to search on 7.7.2006 after a period of about 3 years and 7 months from the due date for completion of assessment in the case of Sri A. Narayanaswamy ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... peration relates to the person other than the person in respect of whom search was made u/s. 132 of the Act. Section 158BE provides for limitation for completing the assessment u/s. 158BC and 158BD. Sub-clause (2b) of section 158BE provides a period of two years from the end of the month in which the notice was served on the other person in respect of whom the undisclosed income relates to. Therefore, it is obvious that Income-tax Act provides for a period of 2 years from the date of issue of notice for completion of assessment in respect of the person who is not subjected to search. Income-tax Act does not prescribe specifically any period for issuance of notice u/s. 158BC of the Act. However, in respect of the person searched u/s. 132 the period of limitation for completing the assessment starts from the end of the month in which the last of the authorisation for search u/s. 132 was executed. Therefore, the Legislature made a distinction in respect of commencement of the limitation with regard to person searched and other person who is not subjected to search. However, no time limit is prescribed specifically for issue of notice u/s. 158BC in respect of a person who is not subjec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... unless the same is recoded it is not possible for any person to discern whether the satisfaction meets the requirements of law at all. The satisfaction can be found in the order passed under section 158BC and if no such order is passed then it will have to be found in the note handing over the material seized to the Assessing Officer assessing the other person. In any event, it has to be in writing and in view of section 158BE, the said recoding has to be made before the time set in section 158BE expires. After the said date, it is not possible to invoke section 158BD at all. 116. A view is expressed that wherever a time limit is intended, the Parliament has provided for the same and in the absence of a specific provision made in this respect it has to be assumed that there is no time limit intended in law. It has to be remembered that the matter relates to fixing huge financial and other civil liability on the person affected ad it has been repeatedly held that there must be a finality to any proceeding under the ct and that a concluded proceeding cannot be reopened at the whim and fancy of the Assessing Officer without the due process of law. Strict interpretation of fiscal sta ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ice issued u/s. 158BD r.w.s. 158BC is bad in law. 9. In the case before us also admittedly the search proceedings was initiated in case of A. Narayanaswamy on 2.11.2001. It is not in dispute that the assessee was not subjected to search at all. However, the Revenue authorities found material against the assessee with regard to undisclosed income. The Assessing Officer ought to have completed the assessment in respect of A. Narayanaswamy on or before 2.11.2003. This date also was not disputed by the Revenue. Therefore, the Assessing Officer ought to have issued the notice u/s. 158BC r.w.s. 158BD against the assessee within a reasonable time after completion of block assessment in the case of A. Narayanaswamy who was subjected to tax. Unfortunately, the Assessing Officer has not taken any steps for more than three years and 7 months. Therefore, there was a unreasonable delay on the part of the Assessing Officer for initiating proceedings by issuing notice u/s. 158BD r.w.s. 158BC of the Act. 10. We have also carefully gone through the decision of the Amritsar Bench of this Tribunal in the case of Vijay Sehgal (HUF) (supra) referred to by the learned DR. No doubt the Amritsar Bench o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sed income of such other person who is now known as a person to whom that undisclosed income belongs. The Assessing Officer, once he reaches the requisite satisfaction, is bound to act swiftly to proceed against such other person as soon as may be in reasonable time. The speed and despatch with which he should act is writ large on the connected provisions of section 132(9A) of the Act under which the authorised officer who has no jurisdiction over the person referred to in clause (a), (b) or (c) of sub-section (1) of section 132 has to hand over the books of account, documents and assets seized to the Income-tax Officer having jurisdiction over such person within 15 days of such seizure and the Assessing Officer is required to serve a notice to such person under section 158BC requiring him to furnish a return in the prescribed Form No. 2B and to complete the block assessment in one year from the end of the month in which the last authorisation for search or requisition was executed. Thus, the apprehension that a notice can be issued under section 158BD read with section 158BC by the Assessing Officer in the case of such "other person" at any time is illfounded. There is no lifting ..... X X X X Extracts X X X X X X X X Extracts X X X X
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