TaxTMI 
TaxTMI 
2014 (2) TMI 903
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....he Income Tax Act was sent to the assessee on 05.12.2005 calling upon the assessee to file income tax returns within 15 days from the date of service of notice. In response to that notice, the assessee filed a letter on 23rd December, 1995 stating that the papers relating to the search to the extent available were being looked into by his Auditors M/s.B.M.Kumbhat & Co., Madras; that it would take at least one month for them to go into the books and prepare the return of income by the Chartered Accountant. In the circumstances, the assessee pleaded time to file returns for the block period by 15th January, 1996. Subsequent to that, by proceedings dated 17.7.1996, the Income Tax Officer directed the assessee to produce certain documents pertaining to the details found in the materials as to the purchase of shares in the last ten years giving the details of the shares purchased, cost of purchase, dealer's name, cost of construction of building constructed by the company during the last ten years and such other particulars relevant to the business of the assessee. 2. It is seen from the files produced before this Court by the Revenue that the assessee filed returns, based on which t....
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.... in the group case. Thus, this Court held that the Tribunal had not applied its mind to the facts of the case of the assessees before us and in order to appreciate the facts pertaining to the case, this Court set aside the order of the Tribunal and thus restored it back to the Tribunal for de novo consideration. 5. Pursuant to the orders thus made in the Tax Case (Appeal), the Tribunal passed an order once again in the assessee's case on 15.12.2004 pointing out to the contention of the assessee that the block period assessment was reappraisal of the facts or change of opinion from the original assessment order and that the additions were mere estimates and not based upon any material found in the search. Since appropriate materials were not on record for adjudication, the Tribunal set aside the order of assessment and remanded the matter back to the Assessing Officer to consider the issues raised by the assessee on various aspects after giving adequate opportunity to the assessee. 6. We find in paragraph 2 of the order of the Tribunal that there is a specific reference to the fact that there was a search and seizure operation under Section 132 of the Income Tax Act on 31.3.19....
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....t jurisdiction. He pointed out that the grounds raised before this Court at the first round of litigation was as to whether the Tribunal was right in annuling the block assessment made under Section 158 BC of the Income Tax Act and that the Department never highlighted the fact that the proceedings were meant to be under Section 158BD of the Income Tax Act. Learned counsel further pointed out that when the Tribunal had found that appropriate materials were not there on record to show any search operation in the name of the assessee, it ought to have cancelled the block assessment instead of remanding the matter back to the Assessing Officer. In effect, his submission is that the Tribunal should have followed its earlier order, which, in fact, was set aside by the High Court and that in at least 41 other cases arising from the same search on the same day, the Tribunal set aside the assessments. Consequently, according to the learned counsel, the Tribunal is inconsistent in its decision of remanding the matter by not following its own earlier orders in 41 other cases. 9. Learned counsel made a particular reference to the decision of the Madhya Pradesh High Court reported in (2005)....
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....s 1, where the assessee was also residing. The search operation resulted in seizure of various documents pertaining to the assessee's transactions too. Thus, taking note of the information pertaining to the assessee, proceedings were initiated by the Revenue by calling for particulars as well as to file returns for the block year. The letter written by the assessee on 23rd December, 1995 makes no secret of the fact that notice was issued on 05.12.2995 calling upon the assessee to file returns within 15 days from the date of service of notice on block assessment proposed consequent on the seizure of materials in the course of search operation on other two persons. Thus the assessee is clear in his understanding of the provisions, under which the block assessment was made and was quite aware of the fact that the assessment under Chapter XIVB was as a result of seizure of materials in the course of search operation in the premises, where the assessee lived along with two other persons on whom the search warrant was issued. In the light of the above said fact, we do not find any justifiable ground to accept the plea of the assessee that the assessment made is bad in law. 14. As far ....
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....that the Assessing Officer had no jurisdiction to proceed against the assessee for making block assessments in terms of Chapter XIV-B, since there was no search conducted in terms of Section 132 of the Act. On appeal, the High Court held that the Assessing Officer had requisite jurisdiction in terms of Section 158BD of the Act read with Section 2(31) thereof. 17. In considering the scope of Section 158BC and 158BD, the Apex Court pointed out as follows: "11.The condition precedent for invoking a block assessment is that a search has been conducted under section 132, or documents or assets have been requisitioned under section 132A. The said provision would apply in the case of any person in respect of whom search has been carried out under section 132A or documents or assets have been requisitioned under section 132A. Section 158BD, however, provides for taking recourse to a block assessment in terms of section 158BC in respect of any other person, the conditions precedent wherefor are: (i) satisfaction must be recorded by the Assessing Officer that any undisclosed income belongs to any person, other than the person with respect to whom search was made under section 132 of th....