TaxTMI 
TaxTMI 
TaxTMI 
2013 (3) TMI 177
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....04 of 2010 titled as Commissioner of Income Tax-II, Ludhiana Vs. Amarjit Singh; ITA No.664 of 2010 titled as Commissioner of Income Tax-II, Ludhiana Vs. Gurmail Singh and ITA No. 665 of 2010 titled as Commissioner of Income Tax-II, Ludhiana Vs. Dalip Singh, which arise out of the common orders passed by the learned Income Tax Appellate Tribunal, dated 28.11.2008. Common questions of law were framed on 08.2.2012 while admitting these appeals which are as under:- "1. Whether on the facts and in the circumstances of the case, the Tribunal was legally justified in cancelling the assessments by holding that the assumption of jurisdiction by issuance of notice under Section 158 BC was invalid and void-ab-initio ? 2. Whether on the facts and in....
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....which pertained to the respondents/assessees herein who are the sons of Lal Singh. On the basis of that material, notices were issued to Lal Singh as well as assessees herein (sons of Lal Singh) under Section 158 BC of the Income Tax Act, 1961 (hereinafter referred to as 'the Act') for 01.4.1985 and 05.10.1985 and ultimately, they filed their returns and declared undisclosed income. The Assessing Officer thereafter carried out the assessment. The returns filed by these persons were not accepted. Many additions were made on various accounts as is clear from the assessment order. However, having regard to the nature of question of law involved, it is not necessary to take note of the nature of these additions. Suffice to state that because ....
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.... in respect of these assessees, it is the provisions of Section 158 BD of the Act which would be attracted and not the provisions of 158 BC. The Tribunal has rightly pointed out that jurisdiction to assess the undisclosed income for the block period under Chapter XIV-B vests in the Assessing Officer by virtue of the provisions of Section 158BA in a case where a search under Section 132 is initiated after 30.6.1995. Again, in term of Section 158 BC, a notice under that Section can be issued where any search has been conducted under Section 132 of the Act. However, assessment is to be carried out in respect of undisclosed income of other person i.e. a person in whose case, there was no search made under Section 132 of the Act, the provisions....
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....ch an assessment without authorization is void ab-initio. The Trubunal has referred to the judgment of the Special Bench in the case of Promain Ltd. vs. DCIT, 95 ITD 489, Delhi Special Bench in this behalf. No issue remains resintegra and law has been settled by various judgments of the High Courts as well. In the case of Ajit Jain Vs. Union of India and others 242 ITR 302, the High Court dealt with the precise issue in the manner as under:- "Since the search in the present case had taken place on January 11,1996, in accordance with the said provisions, an ex parte block assessment for the assessment years 1986-87 to 1996-97 was made on January 31,1997,creating a total demand of Rs. 50,13,204/- on the petitioner in his status as individua....