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TMI Blog2006 (6) TMI 95X X X X Extracts X X X X X X X X Extracts X X X X ..... ribunal was justified in holding that section 158BC read with section 158BD of the Income-tax Act, 1961, had no application to the facts of the case?" 2. The assessee is a partnership firm doing business in purchase and sale of greeting cards and other stationery items under the name and style of "Don Bosco Card Centre". The firm is a sister concern of Don Bosco Industries, whose premises were searched under section 132 of the Income-tax Act, 1961, on January 4, 1996. The business premises of the assessee was also surveyed under section 133A of the Act along with the search in the business premises of Don Bosco Industries. During the course of the survey, the value of closing stock available with the assessee was quantified at Rs. 87,203/- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... le to the facts of this case. It was further ordered that the search and seizure operations conducted by the Department are not proper and legal. Consequently, the Tribunal cancelled the assessment made by the Assessing Officer for the block period from April 1, 1985, to January 4, 1996. 3. The matter is placed before us for opinion on a reference made by the Tribunal. Counsel appearing for the Revenue Sri George K. George submitted that the Tribunal has committed a grave error in not properly appreciating the provisions of sections 158BC and 158BD of the Income-tax Act, 1961. Counsel made specific reference to the definition of block period which appears in section 158B(a) of the Act and that definition would take in the period up to the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nish a return of income for the block period April 1, 1985, to January 4, 1996, as the books of account of the assessee for the assessment years 1984-85 to 1995-96 had been seized from the premises of M/s. Don Bosco Industries during the course of search and seizure proceedings. 4. The question to be examined is as to whether the provisions of section 158BC read with section 158BD of the Income-tax Act would apply to the facts of this case. Chapter XIV-B deals with the special procedure for assessment of search cases. The provisions of this Chapter will not apply to assessments pursuant to searches or requisitions made after May 31, 2003. Indisputedly, during the period in question the provisions of Chapter XIV-B were applicable. The defin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... definition of "block period" we have to attribute a wider meaning to the expression "block period". The definition clause says that block period means the period comprising previous years relevant to six assessment years preceding the previous year in which the search was conducted under section 132 or any requisition made under section 132A and also includes the period up to the date of the commencement of such search or date of such requisition in the previous year in which the said search was conducted or requisition was made. The search in Don Bosco Industries was conducted under section 132 of the Act on January 4, 1996, the date of commencement of search, within the meaning of sections 158BC and 158BD read with section 158B(a). Comme ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... diction over such other person and that Assessing Officer shall proceed under section 158BC against such other person and the provisions of Chapter XIV-B shall apply accordingly. 8. We have already indicated that we have to read sections 158BC and 158BD along with the definition clause "block period" under clause (a) of section 158B. If so read, the block period has to be reckoned so far as this case is concerned, as the period from April 1, 1985, to January 4, 1996, January 4, 1996, being the date of commencement of search. Under such circumstances we are inclined to answer the reference in favour of the Revenue. We hold that the Tribunal was not justified in holding that section 158BC read with section 158BD of the Income-tax Act, 1961, ..... X X X X Extracts X X X X X X X X Extracts X X X X
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