TaxTMI 
TaxTMI 
TaxTMI 
2013 (7) TMI 695
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....ting out certain defects in the notice issued by the AO u/s 158 BC of the Act though such defects were curable in the light of provisions of Section 292-B of the Act." 3. Brief facts, giving rise to this appeal are that on 2.4.2000, the police of Palanpur, District Banskantha of Gujarat intercepted a Jeep No. HP-03/3313, in which seven persons, including the five assessees were travelling. Large quantity of silver ornaments/silver was recovered from these persons. So far as Vinod Kumar, the respondent-assessee is concerned, 79.271 Kg of silver jeweleries were recovered from his possession. The police gave information to the Director of Income-tax, Investigation, about the seizure of the silver ornaments/silver from the five persons including respondent-assessee Sri Vinod Kumar. 4. The Director of Income-tax, Investigation, after having received the information, issued a warrant of requisition under Section 132-A of the Act on 3.4.2000, directing the Superintendent of Police Palanpur, District Banskantha, Gujarat, to deliver the said silver jewellery/silver to the Income-tax Officer authorized, as per warrant of requisition, which was served on the Superintendent of Police on 5.4.....
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....32-A, and not on the date of execution. The Tribunal was of the opinion that the Block period in the present case ended 3.4.2000, when the summons were issued, and not on 16.02.2001, when the department received the goods i.e. the summons were deemed to have been executed. 9. The Tribunal relied on Explanation- 2 (b) to the provision of Section 158 BE (2) (b, which provides that in the case of requisition under Section 132-A, the period of limitation shall be two years from the end of month in which the notice under the chapter is served, from the date of actual receipt of the books of accounts or other documents or assets by the authorized officer. The provision of Section 158 BE 2(b) and the relevant provisions of explanation 2 (b) are quoted as follows:- "Time limit for completion of block assessment 158 BE (1) xxx xxx xxx (2) The period of limitation for completion of block assessment in the case of other person referred to in Section 158 BD shall be (a) xxx xxx xxx (b) Two yeas from the end of the month in which the notice under this Chapter was served on such other person in respect of search initiated or books of account or other documents or any assets are requisition....
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....igation) and others [238 ITR 501], in which it was held, on interpretation of explanation 2, as follows:- "Learned senior standing counsel, Mr. Menon, for the revenue submitted that the petitioner has preferred a statutory appeal and all these points can be canvassed before the appellate authority. He also submitted that on a plain interpretation of section 158BE the one year period of limitation starts to run from the execution of the authorisation and in this case the authorisation issued for search was executed only on 6-5-1996 as finally concluded. The execution, according to him, means only completion, conclusion or implementation of the authorisation and not the date of the issue of the authorisation. He further drew inspiration and support as to the intendment of the legislature to the Finance Bill No. 2 of 1998 where Explanation 2 has been added which is as follows: "For the removal of doubts, it is hereby declared that the authorisation referred to in sub-section (1) shall be deemed to have been executed. (a) in the case of search, on the conclusion of search as recorded in the last Panchnama drawn in relation to any person in whose case the warrant of authorisation has....
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....ty which has not been or would not have been disclosed for the purpose of this Act or any expense, deduction or allowance claimed under this Act which is found to be false. 14. Section 158 BC provides for procedure for block assessment. The time limit for completion of block assessment is provided in Section 158 BE. Section 148 of the Act gives powers to the AO to make assessment for escaped assessment. If the AO has reasons to believe that an income chargeable to tax has escaped assessment for any assessment year, he may assess or reassess such income and also any other income chargeable to tax, which has escaped assessment and which comes to his notice subsequently in the course of the proceedings under Section 147 or recompute the loss or the depreciation allowance or any other allowance as the case may be. 15. It is admitted that the assets came into the hands of AO on 16.02.2001, and thus block period in the notice was correctly mentioned in accordance with Explanation 2 (b) of sub section 2 of Section 158 BE of the Act from 1.4.1990 to 16.2.2001. There was no error mentioning the block period in the notice, which can be held as invalid. We may also add here that even if a d....