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TMI Blog2002 (1) TMI 262X X X X Extracts X X X X X X X X Extracts X X X X ..... e requisition under section 132A was made much before 30th June, 1995. The invoking of the provisions of Chapter XIVB of the Income-tax Act in the facts of this case is ab initio wrong, illegal and without jurisdiction, and the assessment framed under Chapter XIVB is a nullity and liable to be quashed. 2. That the conditions precedent for initiating action under section 132 or 132A did not exist and were not satisfied. Therefore, the issuance of Warrant of Authorisation under section 132A and all proceedings taken and order passed in pursuance thereof are wrong, illegal and bad-in-law." 3. These two grounds were raised as additional grounds and being question of law and go to the root of the matter and also they deal with the grounds req ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... come into play. The alternative contention of the assessee was that the condition for initiating action under sections 132 and 132A did exist and, therefore, the second Warrant of Authorisation was not valid because the information about the existence of the money and the fixed assets was already with the department since 1991. It is further submitted that the assessee had no obligation to show the cash and FDRs to any authority under the Income-tax Act because he was not having taxable income. 6. Ld. departmental representative, on the other hand, submitted that 1991 search Warrant was signed by the DI but no action was taken and it was kept in the file and, therefore, it could not be a case of initiation of proceedings. It was submitte ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... any assets were requisitioned under section 132A after the 30th day of June, 1995. In this case, admittedly the Warrant of Authorisation under section 132A was signed on 4-12-1991 and this is an action for initiating proceedings under section 132A within the meaning of provision of section 158BA of the Act. Whether the Warrant was actually executed or not or the assets were taken possession of by the revenue thereunder or not and the date on which the possession of the assets taken by the Revenue under this section is immaterial. What the section requires is that the search is initiated or the assets are requisitioned under section 132A. Initiation means the first action taken. It is not the end result of the action taken thereunder. A ref ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... E used both the terms 'executed' as well as 'initiated' and it makes a clear difference between two concepts. Under these circumstances, the contention of the departmental representative that the Warrant of Authorisation under section 132A was actually executed in 1995 and that being a date after 30-6-1995, the provision of section 158BA of the Act would apply has no force. What is material for invoking the special provision is initiation of the search or requisition of books of account or other assets and it would be immaterial whether it was executed action or dropped or not executed for whatever reason. The first action was initiated much before the vulnerable date from which the operation of the new provision comes into play. The first ..... X X X X Extracts X X X X X X X X Extracts X X X X
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