Validity of search can be challenged in block assessment appeal before Tribunal, even without a separate writ petition.

In an appeal against a block assessment under Chapter XIVB of the Income-tax Act, the assessee may challenge the legality of the search that forms the foundation of the assessment. The Tribunal must first satisfy itself that the search was valid and legal before going into the merits of the block assessment. A separate writ petition challenging the search is not a prerequisite for raising this jurisdictional objection in the assessment appeal. The Tribunal therefore had jurisdiction to examine the validity of the search, and its contrary view was unsustainable.

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Issues: Whether the Tribunal could examine the validity of the search for determining its jurisdiction to make a block assessment under Chapter XIVB of the Income-tax Act, 1961.

Analysis: The Court applied the earlier binding decision that, in an appeal against a block assessment order, the assessee is entitled to challenge the legality of the search forming the foundation of the assessment. The Tribunal is first required to satisfy itself that the search was valid and legal before examining the merits of the block assessment. The absence of a separate writ challenge does not bar such a jurisdictional objection in the appeal against the assessment order.

Conclusion: The Tribunal had jurisdiction to examine the validity of the search, and its contrary view was unsustainable.

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