2011 (10) TMI 461

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....1986-1987 to 1996-1997. The appeal was admitted on the following questions of law:   "1. Whether the Tribunal is correct in upholding the order of the block assessment both on the assumption of jurisdiction and on the point of limitation as envisaged in Chapter XIV-B of the Act?   2. Whether the Tribunal is correct in rejecting the grounds challenging the validity of the assessment under consideration on the point of limitation prescribed in Section 158BE of the Act?   3. Whether the Tribunal is correct in confirming the jurisdiction to frame the block assessment in spite of definition of undisclosed income prescribed in the said chapter and further in spite of the fact that the additions were not linked to the resul....

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....er Section 132(1)(B)(iia) of the Act which enables such search even on any third person, the assessment order was passed on 12.2.2001 and that is beyond the period of limitation prescribed under the Act. In this regard, it is relevant to extract Section 132(1)(B)(iia) of the Act, which is as follows: "Section 132. Search and seizure.   (1) ...   (B) ...   (iia) search any person who has got out of, or is about to get into, or is in, the building, place, vessel, vehicle or aircraft, if the authorised officer has reason to suspect that such person has secreted about his person any such books of account, other documents, money, bullion, jewellery or other valuable article or thing"   6. It is seen from the order....

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....96, should be taken into consideration for the purpose of reckoning the period of limitation, in which event the assessment order will be beyond the period of limitation, it is seen and not in dispute that the notice was issued to the petitioner on 28.11.1996, as elicited by the Tribunal in the impugned order. If 28.11.1996 is taken into consideration for reckoning the period of limitation, the assessment is made within time.   8. It is relevant to point out that in the writ petition filed by the assessee himself against the action taken under the Foreign Exchange Regulation Act, this Court granted interim stay on 19.11.1997, which came to be vacated on 12.1.2001. It was admittedly after vacating the stay order, the assessment order....