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TMI Blog2016 (8) TMI 214X X X X Extracts X X X X X X X X Extracts X X X X ..... at Notice u/s.158BD of the Act issued on 29.08.1997 was a valid Notice and that the consequential assessment framed on 24.12.1997 was within limitation cannot be accepted and is void ab initio being barred by time. Thus, the action of the A.O. of withdrawing the Notice u/s.158BC and issuing fresh Notice u/s.158BD of the Act is illegal and bad in law. There is no provision in the Act for initiating reassessment proceedings for block period, either u/s.147 or 158BC or 158BD of the Act. Therefore, both the actions of the Assessing Officer are illegal and bad in law. Tribunal was completely justified in holding that the block assessment passed u/s.158BD r/w. Section 158BC was barred by time and therefore, void ab initio. Thus, we answer the question in the affirmative, i.e. in favour of the assessee - TAX APPEAL NO. 1449 of 2006 - - - Dated:- 8-7-2016 - MR. KS JHAVERI AND MR. G.R.UDHWANI, JJ. FOR THE APPELLANT : MR NITIN K MEHTA, ADVOCATE FOR THE OPPONENT : MR MANISH J SHAH, ADVOCATE ORAL JUDGMENT (PER : HONOURABLE MR.JUSTICE KS JHAVERI) 1. This Tax Appeal u/s.260A of the Incometax Act, 1961 is filed against the order dated 19.05.2006 passed by the Incom ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 9.1998 since Notice u/s.158BD r/w. Section 158BC(a) issued on 29.08.1997 was served on the assessee on 02.09.1997, the A.O. completed assessment well in time, i.e. on 24.12.1997. Hence, the action of the A.O. in initiating proceedings u/s.158BD of the Act was legal and well within the period of limitation. 5. Mr. Manish Shah, learned counsel for the assessee, submitted that Section 158BC of the Act prescribes the issuance of a Notice requiring the person to furnish their returns of undisclosed income. Insofar as provisions of Section 158BD of the Act are concerned, it does not prescribe the issuance of any Notice as such because it only gives jurisdiction to the A.O. over the case of such other person to proceed with the assessment proceedings under Chapter XIVB of the Act and the A.O. cannot put the proceedings in motion by issuing a Notice u/s.158BD of the Act rather the Notice for putting the assessment proceedings in motion has to be issued u/s.158BC of the Act. 5.1 Learned counsel Mr. Shah further submitted that the first Notice u/s.158BC of the Act was issued on 17.10.1996 and served upon the assessee on 04.11.1996. By virtue of the provisions of Section 158BE(ii) of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r property which has not been or would not have been disclosed for the purposes of this Act [or any expense, deduction or allowance claimed under this Act which is found to be false] . 8. Sections 158BC and 158BD of the Act are machinery provisions. Section 158BC of the Act provides the procedure for block assessment and Section 158BD of the Act provides for assessments in the case of an undisclosed income of any other person. The said sections are relevant for the purpose of this case and, therefore, they are extracted. They read as under: Section 158BC. PROCEDURE FOR BLOCK ASSESSMENT. Where any search has been conducted under section 132 or books of account, other documents or assets are requisitioned under section 132A, in the case of any person, then, [( a) The Assessing Officer shall, (i) In respect of search initiated or books of account or other documents or any assets requisitioned after the 30th day of June, 1995 but before the 1st day of January, 1997 serve a notice to such person requiring him to furnish within such time not being less than fifteen days; (ii) In respect of search initiated or books of account or other documents or any assets requisitioned ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... for completion of block assessments. Section 158BD of the Act provides for undisclosed income of any other person. 10. Before we proceed to explain the said provision, we intend to remind ourselves of the first or the basic principles of interpretation of a fiscal legislation. It is time and again reiterated that the Courts, while interpreting the provisions of a fiscal legislation, should neither add nor subtract a word from the provisions of instant meaning of the sections. It may be mentioned that the foremost principle of interpretation of fiscal statutes in every system of interpretation is the rule of strict interpretation which provides that where the words of the statute are absolutely clear and unambiguous, recourse cannot be had to the principles of interpretation other than the literal rule. 11. Admittedly, the provisions of Section 158BD has not prescribed any timeframe to be allowed to the assessee for complying with the Notice. If we analyze the provisions of Sections 158BC, 158BD and 158BE of the Act, it would be evident that Notice u/s.158BC of the Act has to be issued for making an assessment under Chapter XIVB in both types of cases, viz. cases covered by ..... X X X X Extracts X X X X X X X X Extracts X X X X
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