TaxTMI 
TaxTMI 
2006 (4) TMI 204
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....fly stated, the facts of the case are that the assessee was carrying on the business of job-work of manufacturing of gold and silver ornaments and also derived income from interest on money-lending and income from sale of gold and silver ornaments, utensils, etc., manufactured by him with the assistance of other artisans. A search was carried out under section 132(1) of the Income-tax Act, 1961 (hereinafter referred to as "the Act" for short), at residential and business premises of the assessee on January 3, 1997. Numerous incriminating documents were found during the course of search. Consequently, a notice under section 158BC of the Act was issued to the assessee and in compliance thereof he filed return, for the block period April 1, 19....
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.... relate to a case where search was initiated before January 1, 1997. But the learned Commissioner of Income-tax (Appeals) confirmed the penalty order by not accepting the legal plea raised by the assessee. Again, the assessee has taken various grounds before this Bench in its second appeal, but concentrated on the legal ground, which goes to the very root of the matter. Therefore, we heard both the parties on the above legal issue at length, and came to the conclusion that the impugned penalty is not sustainable and thus there was no need to decide other ancillary grounds taken by the assessee. Both the parties also agreed to above proposition. 4. The claim of the assessee is that the search was initiated in this case before January 1, 199....
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.... of the search. According to the learned authorised representative, the search in this case was initiated on December 30, 1996, the date on which the Director of Investigation so authorised and this search was executed on January 3, 1997, when the search was actually commenced at the residential and business premises of the assessee. On the contrary, the Department' s view is that it is the date of commencement of search, i.e., January 3, 1997, on which the search was "initiated" . Now, the controversy hinges on the answer to the question as to when the search was actually "initiated" . 6. After considering the relevant material, we are of the considered opinion that "initiation" means the very beginning of a process or to take the fir....
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....ial provision was initiation of the search or requisition of books of account or other assets and it would be immaterial whether it was executed, or dropped or not executed for whatever reason." 7. Dealing with the similar issue, the Bangalore Bench of the Tribunal in IT(SS)A. No. 183/Bang/2002 for the block assessment years 1991-92 to 1996-97, while deciding the case of Wipro Finance Ltd. v. Deputy CIT [2003] 80 TTJ (Bang) 571; [2003] 133 Taxman 158 (Bangalore-Mag), wherein one of us (Judicial Member) was a party to that order, held that the "initiation" of search commences with issue of authorization by the Director of Income-tax. This view finds support from the decision of the hon'ble Madras High Court given in the case of Artisan ....