2004 (3) TMI 21

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..... ce of notice while under section 158BC, it becomes clear that a notice is required to be served requiring him to furnish the return within such time not being less than 15 days - Further submission is that the notice has been issued on July 24, 2003, and, therefore, the block assessment period should be a block period of six years and not ten years as claimed by the Revenue - Held that the Assessing Officer will consider the provisions and shall pass an appropriate order.
Judge(s) : B. C. PATEL., BADAR DURREZ AHMED. JUDGMENT The judgment of the court was delivered by B.C. Patel C.J.- By this petition, the petitioner, M/s. Janki Exports International, through Sh. S.P. Gupta, a partner of the firm has challenged the notice dated July 2 .....

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..... od of two years from the date of completion of search and seizure ending on November 21, 2000, proceedings could have been initiated against the petitioner under section 158BD of the Act. But that having not been done the proceedings, having been initiated on July 24, 2003, are required to be quashed as being time-barred. Section 158BD reads as under: "Where the Assessing Officer is satisfied that any undisclosed income belongs to any person, other than the person with respect to whom search was made under section 132 or whose books of account or other documents or any assets were requisitioned under section 132A, then, the books of account, other documents or assets seized or requisitioned shall be handed over to the Assessing Officer hav .....

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..... this is done, we feel that the person who is to be proceeded against under section 158BD and then section 158BC, must be informed about the satisfaction of the Assessing Officer which has been recorded and he must be given a reasonable opportunity to object to the same. Satisfaction can be arrived on some material. That material would provide the reasonable satisfaction. In the case of GKN Driveshafts (India) Ltd v. ITO [2003] 259 ITR 19, the Supreme Court, while considering the provisions of section 148, pointed out as under: "However, we clarify that when a notice under section 148 of the Income-tax Act is issued, the proper course of action for the noticee is to file a return and if he so desires, to seek reasons for issuing notices. Th .....

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