9911796707
TMI Blog2011 (12) TMI 596X X X X Extracts X X X X X X X X Extracts X X X X ..... The revenue has filed the appeal against the order of CIT(A)-IV, Kochi dated 07-03-2007 for the block period 1989-90 to 1998-99 and the assessee has filed cross objection against the very same order. Therefore, we heard the appeal and the cross objection together and dispose of the same by this common order. 2. In the cross objection, the assessee has raised the issue of limitation in passing the order u/s 158BD of the Act. Since the issue of limitation goes to the very root of the matter, we take up the cross objection first. 3. Shri Z.T. Zacharia, the ld.representative for the assessee submitted that there was a search on 03-03-1999 at the premises of Shri PK Kurien. On the basis of the material found in the course of search proceedin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g officer has validly passed the assessment order after issuing notice. 5. We have considered the rival submissions and also perused the material available on record. It is not in dispute that the block assessment proceedings in the case of Shri PK Kurien were completed u/s 158BC on 30-03-2001. No doubt, there is no provision in the Income-tax Act fixing the time limit for issuing notice u/s 158 of the Act in respect of the person other than searched, but, it does not mean that the assessing officer can issue the notice at his sweet will at any time. Finality of the proceedings cannot be seen so lightly. Section 132(9A) enables the authorized officer to examine the books of account or other documents or any money, bullion, jewellery or oth ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sonable period. We find that this issue was examined by a Five Member Bench of this Tribunal at Delhi in Manoj Agarwal vs DCIT (2008) 113 ITD 377 (Del)(SB). The special Bench of the Tribunal examined the scheme of the Act and observed on page 481, paragraph 110 & 111, as under 110. It is clear from the above that the provisions of section 158BD are thus inextricably interlinked and intertwined with section 158BC and they are like Siamese twins. In the circumstance, it is not possible to view section 158BD in isolation and de hors section 158BC as that would militate against the intention behind the enactment of Chapter XIV-B to provide for a complete code for assessment of undisclosed income as different from the assessment of normal inco ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o a specified person and identified by him. After arriving at this finding, he has to hand over such material, documents etc., to the Assessing Officer having jurisdiction over the said other person at that material point of time and it is at that stage the second Assessing Officer assumes jurisdiction at that point of time. If the Assessing Officer assessing the person searched does not find any undisclosed income at all, or does not arrive at any finding in respect of the same or having arrived at such finding does not hand over the material to the second Assessing Officer, the provisions of section 158BD do not come into operation at all." The Special Bench again observed as follows on page 484 at paragraph 114 & 115: 114. Section 15 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... her person. In any event, it has to be in writing and in view of section 158BE, the said recording 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." In view of the above, issue of notice u/s 158BD after two years from the date of completion of the assessment in respect of the person against whom search was carried out is barred by limitation. A similar view was taken by Hyderabad Bench of this Tribunal in the case of Dy.CIT, Cir. Vs Shri P Venkata Ramana in ITSSA No.08/HYD/2010 order dated 11-02-2011. A similar view was also taken by the Gujarat High Court also in the case of Khandubhai Vasanji Desai & Ors vs DCIT (1999) 236 ITR 73 (Guj) 7. In view of the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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