2014 (10) TMI 395

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....1987 to 24.09.1997 was served on the assessee, requiring him to file his return of undisclosed income within 16 days of the service of notice. The assessee filed the return of undisclosed income on 12.08.1999, declaring an undisclosed income of Rs. 1,42,297/-. There was a delay of 17 months in filing the return. The assessment was completed under Section 158BC r/w. Section 144 of the Act on 30.09.1999, determining the undisclosed income of Rs. 2,45,57,160/- as the assessee has not filed any explanation or objections to the issues raised in the notice under Section 144 of the Act, dated 05.07.1999. Aggrieved by the said order, the assessee preferred an appeal before the Commissioner of Income Tax (Appeals). The Commissioner of Income Tax (Appeals) by vide order dated 24.10.2000, set aside the assessment directing the assessing authority to re-examine the facts of the case by giving reasonable opportunity to the assessee. Subsequently, a notice under Section 143 (2) and 142 (1) was served. The assessee approached his chartered accountant and put forth his defense. After hearing the assessee, the assessing authority passed an order computing the undisclosed income at Rs. 51,67,300/-. ....

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....he assessing officer passed an order under Section 158 BC r/w. Section 144 of the Act on 30.09.1999 for the block period 01.04.1987 to 24.09.1997, under chapter XIVB of the Act. The assessee preferred an appeal before the Commissioner of Income Tax (Appeals) against the said order under Section 250 of the Act. The appellate authority by order dated 24.10.2000 passed an order setting aside the assessment and directing the assessing officer to re-examine the facts of the case. The order of the Appellate Commissioner was received on 15.01.2001. After hearing the parties, the assessing officer passed an order on 28.03.2003, again under Section 158 BC r/w. Section 250 of the Act. The question for consideration is, whether this order passed on 28.03.2003 is in time as stipulated under Section 153 (2A) of the Act or not? 6. Learned Counsel for the Revenue contended that Chapter XIV B of the Act is complete code in itself, on the subject of prescription and computing limitation for complete block assessment. Section 153 (2A) prescribes the time limit for orders passed under Sections 153 (1), 153 (1A), 153 (1B) and 153 (2). In view of the non-obstante clause and Section 158 (BC) is not inc....

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....ioner or Commissioner, on or after the 1st day of April, 1999 but before the 1st day of April, 2000, such an order of fresh assessment may be made at any time up to the 31st day of March, 2002 :]     [Provided further that where the order under section 254 is received by the Chief Commissioner or Commissioner or, as the case may be, the order under section 263 or section 264 is passed by the Commissioner on or after the 1st day of April, 2005 [but before the 1st day of April, 2011], the provisions of this sub-section shall have effect as if for the words "one year", the words "nine months" had been substituted:]     [Provided also that where the order under section 254 is received by the Chief Commissioner or Commissioner or, as the case may be, the order under section 263 or section 264 is passed by the Commissioner on or after the 1st day of April, 2006 53a [but before the 1st day of April, 2010], and during the course of the proceedings for the fresh assessment of total income, a reference under sub-section (1) of section 92CA-     (i) was made before the 1st day of June, 2007 but an order under sub-section (3) of section 92CA has ....

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....provided in this Chapter, all other provisions of this Act shall apply to assessment made under this Chapter". Therefore, the intention is very clear that though Chapter XIV B is a complete code by itself and an assessment order has to be passed under the said Chapter and passing the assessment order under other provisions of the Act are not permissible. If the Chapter do not provide for contingency, then Section 158BH makes all other provisions of the Act apply to an assessment made under the said Chapter. Therefore, Section 158BC of the Act, provides for framing of assessment order for the block period. The provisions of the Act are not applicable for passing an order under Section 158BC of the Act. The time prescribed for passing such an order is prescribed in Section 158BE of the Act, within which time limit the order under Section 158BC has to be passed. The Chapter does not prescribe any limitation, in case, the block assessment is set aside and the matter is remanded back to the assessing authority for framing fresh assessment and after such remand, the assessing authority has to pass an order under Chapter XIV B of the Act itself, wherein the time is not prescribed and then....