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TMI Blog2020 (1) TMI 22X X X X Extracts X X X X X X X X Extracts X X X X ..... If these 105 days are added to the last date before which the Audit Report was furnished viz., 31.07.2000, the date of assessment will get extended upto 13.11.2000. The assessment for block period in the present case was made by the Assessing Authority admittedly on 13.11.2000 itself and therefore apparently the said assessment is within limitation. The contention of the Assessee is that the period of exclusion should be computed from the date on which the order under Section 142(2A) of the Act was served upon the Assessee viz., on 20.04.2000 till 31.07.2000 which will give the exclusion period of 102 days only and therefore, the Assessment Order passed on 13.11.2000 will be hit by the bar of limitation is misconceived and contrary to the clear and bare language of the provisions of the Act which employed the word directs the Assessee to get his accounts audited . These words are in contra distinction to the words employed in Section 142(2A) proviso where the extension of period by 180 days will become effective from the date when the order of extension is received by the Assessee. The proviso to Section 142(2A) quoted above, clearly uses the words received by the Assessee an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to furnish the report, is to be excluded. 5.In the present case, the Assessing Officer vide his order dated 17.4.2000 directed the assessee to get his accounts audited and submit the report by 31.7.2000. This period has to be excluded while computing the limitation for passing a block assessment order. 6.According to the assessee, the order of the Assessing Officer was served on him only on 20.4.2000 and therefore, only the period from 20.4.2000 to 31.7.2000 can be excluded while computing the limitation period as per which the block assessment order should have been passed on 11.11.2000. In fact, in the present case, the block assessment was passed on 13.11.2000. 7.Therefore, it is clear that while the dispute is raised on the basis of the two days, i.e. whether 17.4.2000 is to be reckoned or 20.4.2000 is to be reckoned. If argument of the assessee is to be accepted, the order should have been passed on 11.11.2000. But, it is to be seen that 11.11.2000 was a Saturday, which was holiday for Central Government offices. The next day 12.11.2000 was a Sunday. The immediately following working day was 13.11.2000. The block assess ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... He drew the attention of this Court that Section 158BE of the Act and Section 142(2A) of the Act which are quoted below for ready reference. Section 158BE Time limit for completion of block assessment. 158BE. 34[(1) The order under section 158BC shall be passed- (a) within one year from the end of the month in which the last of the authorisations for search under section 132 or for requisition under section 132A, as the case may be, was executed in cases where a search is initiated or books of account or other documents or any assets are requisitioned after the 30th day of June, 1995, but before the 1st day of January, 1997; (b) within two years from the end of the month in which the last of the authorisations for search under section 132 or for requisition under section 132A, as the case may be, was executed in cases where a search is initiated or books of account or other documents or any assets are requisitioned on or after the 1st day of January, 1997. (2) The period of limitation for completion of block assessment in the case of the other person ref ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o get the accounts so audited unless the assessee has been given a reasonable opportunity of being heard.] (2B) The provisions of sub-section (2A) shall have effect notwithstanding that the accounts of the assessee have been audited under any other law for the time being in force or otherwise. (2C) Every report under sub-section (2A) shall be furnished by the assessee to the [Assessing] Officer within such period as may be specified by the [Assessing]Officer : Provided that the [Assessing] Officer may, [suo motu, or] on an application made in this behalf by the assessee and for any good and sufficient reason, extend the said period by such further period or periods as he thinks fit ; so, however, that the aggregate of the period originally fixed and the period or periods so extended shall not, in any case, exceed one hundred and eighty days from the date on which the direction under sub- section (2A) is received by the assessee. 6.On a bare perusal of the provisions of the Act quoted above, it is very clear that the period of limitation prescribed in Section 158BE of the Act excludes the period ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (iii) of Explanation 1 to Section 153 of the Act refers to the period commencing from the date when the Assessing Officer directs the Assessee to get his accounts audited under Section 142(2A) ending with the date on which the Assessee is required to furnish the report of the audit. Paragraphs 27 and 28 of the Judgment of Delhi High Court are quoted below for ready reference: For the reasons elucidated, we do not find any merit in the said contention raised and the interpretation placed by the petitioner. Section 142(2A) of the Act empowers the Assessing Officer to pass an order directing the special audit. Clause (iii) of Explanation 1 to Section 153 refers to the period commencing from the date when the Assessing Officer directs the assessee to get his accounts audited under sub-section (2A) of Section 142 ending with the date on which the assessee is required to furnish the report of such audit, and states that this period is to be excluded. The starting point is the date on which the Assessing Officer directs the assessee to get his accounts audited and not the date on which the said order is received by the assessee. The period of exclusion under clause (iii ..... X X X X Extracts X X X X X X X X Extracts X X X X
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