2009 (11) TMI 572

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....he assessment was completed within two years from the end of the month when the notice under the correct section was issued."   2. The facts : (i) The assessee is a real estate broker. During the course of search in the case of one Shri M. Mayan, the residential premises of the assessee were searched under section 132 on June 23, 1999. The Assessing Officer issued notice under section 158BC on July 27, 1999, in the case of the assessee. Later, the Assessing Officer on noticing that the warrant was not in the name of the assessee, issued a fresh notice under section 158BC read with section 158BD on February 7, 2001. The assessee filed a block return admitting nil undisclosed income. The Assessing Officer completed the block assessmen....

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....cts are not much disputed. The dates of the relevant notices are as follows : The notice under section 158BC was issued to the assessee on July 27, 1999. After noticing that the warrant was not issued in the name of the assessee, a fresh notice under section 158BC read with section 158BD was issued on the assessee on February 7, 2001. The assessee filed the block return on January 29, 2003 admitting "nil" undisclosed income. The assessment was made on February 27, 2003. In this factual situation, the question that arises for consideration is as to whether the second notice issued on February 7, 2001 can be regarded as an appropriate notice under the appropriate provision as contended by the learned counsel for the Revenue so as to decide th....

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.... in whose favour credits had been entered in the books of account of those firms. An order was passed. On further appeal the Tribunal passed an order of remand. On further appeal to the High Court, the High Court held that L knew the purpose for which the notice was issued he being the person, who apparently was in control of the affairs of the firm of which he was a partner. The firms as also his wife were not in doubt as to the purpose for which the notice was issued or the source of the authority of the officer issuing the notice. In fact, in response to the notices returns were filed by all of them. Absence of mention of the provision in the notice was, therefore, not a circumstance which could be said to vitiate the ultimate order. &nb....