2011 (9) TMI 1204 - HC - Income Tax

High Court clarifies assessment order timeline under sections 158BC and 158BD

The Commissioner of Income Tax, The Deputy Director of Income-Tax Exemptions Bangalore. Versus St. Ann’s Education Society

The High Court upheld the Tribunal's decision regarding the interpretation of provisions u/s 158BC and 158BD for determining the timeline of an assessment ... - Issues involved: Interpretation of provisions u/s 158BC and 158BD for assessment order timeline determination.In the present case, the High Court of Karnataka heard an appeal challenging the order of the Appellate Tribunal regarding the applicability of provisions u/s 158BC and 158BD for determining the timeline of an assessment order. The Tribunal had held that the assessment order passed on 31-10-2001 for the assessee was barred by the law of limitation as the appropriate provision applicable was 158BC, not 158BD.Interpretation of provisions u/s 158BC and 158BD:The case involved a search warrant issued in the name of individuals but executed at the premises of St. Ann's Education Society, leading to the seizure of books of accounts belonging to the assessee. Subsequently, a notice u/s 158BD was issued to the assessee for filing a return, and block assessment proceedings were initiated, culminating in the assessment order dated 31-10-2001. The Tribunal determined that the search dates were 13-07-1999 and 02-08-1999, with the latter considered as the date of the last panchanams. As per the Tribunal's interpretation, the assessment order should have been passed by 31-08-2001, making the order beyond the statutory time limit and thus legally valid.Conclusion:The High Court upheld the Tribunal's decision, emphasizing that the order was not in violation of the law of limitation. Consequently, the appeal challenging the Tribunal's order was dismissed.