TaxTMI 
TaxTMI 
2015 (3) TMI 605
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....stances of the case, the ld. CIT(A) was not justified in confirming the addition of Rs. 6,98,880/- made by the AO treating the same as unexplained income of the assessee on account of the seized cash from the premises of the assessee. ITA No.1940/Kol/08 A.Y 2003-04 (by the assessee) : 1. For that on the facts and in the circumstances of the case, the ld. CIT(A) erred in confirming the addition of Rs. 1,50,000/- made by the AO by wrongly assessing the advance received on sale of car as undisclosed income. 3. Apart from the above, the assessee has also filed additional grounds and prayed before us for admission of the same :- 4. Additional ground and the prayer raised in ITA Nos.1939& 1940/K/08 A.Y 2001-02(by the assessee) are as under:- "(2) That due to inadvertence the following legal grounds was not taken in the said appeal. (a) That, in this case, the search having been initiated and assets requisitioned on 28th February 2001 under sec. 132/sec. 132A of the Income Tax Act, 1961 i.e. before 31st May 2003, the ld. Assessing Officer erred in assuming jurisdiction under sec. 153A for issue of a notice requiring the assessee to furnish a return of income under that section. (b)....
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.... of the AO for the assessment year 2001-02 are that a search was conducted by the Commissioner of Custom, West Bengal, Kolkata on 16-09-2000 in the premises of Sri Sachin A Mehta at 14, Muktaram Babu Street, Kolkata-7, which was his business unit for polishing precious and semi precious stones. There was a seizure of precious and semi precious stones valuing of Rs. 1,79,47,462/- and cash of Rs. 6,98,880/-from the said premises. Thereafter, Custom Authorities informed the I.T Department vide their letter No.VIII(10)/127/P&I/WB/2000/453( C ) dated 16-10-2000. The Income-tax Department issued warrant upon the custom authorities and search warrant was issued on 28-02-2001 and it was served requisitioning the seized items lying in the custody of the Custom Department. The case was pursued with Custom Authorities by the department, which had ultimately handed over the seized stones at Rs. 1,79,47,462/- on 9.9.2004 and a bank draft of Rs. 6,98,880/- on 16.12.2004. 7. It may also be noted that the above facts are undisputed that the assessee and revenue both have accepted the same. 8. Now, the submissions of the ld. Counsel of the assessee is that the AO in this case has assumed his juri....
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....er consideration is when the AO assumed his jurisdiction, when the Income Tax department issued search warrant on 28-02-2001, which was communicated on 5-3-2001 or whether the AO has assumed jurisdiction on 9-9-04 when the seized materials were handed over to the Income Tax department . In this connection since the notice in this case has been issued u/s. 132A, we may gainfully refer to the provisions of section 132A. Section 132A: '133A. Power of survey.- (1) Notwithstanding anything contained in any other provision of this Act, an income-tax authority may enter- (a) any place within the limits of the area assigned to him, or (b) any place occupied by any person in respect of whom he exercises jurisdiction, or (c) any place in respect of which he is authorised for the purposes of this section by such income-tax authority, who is assigned the area within which such place is situated or who exercises jurisdiction in respect of any person occupying such place, at which a business or profession is carried on, whether such place be the principal place or not of such business or profession, and require any proprietor, employee or any other person who may at that time and plac....
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....tock or other valuable article or thing. (5) Where, having regard to the nature and scale of expenditure incurred by an assessee, in connection with any function, ceremony or event, the income-tax authority is of the opinion that it is necessary or expedient so to do, he may, at any time after such function, ceremony or event, require the assessee by whom such expenditure has been incurred or any person who, in the opinion of the income-tax authority, is likely to possess information as respects the expenditure incurred, to furnish such information as he may require as to any matter which may be useful for, or relevant to, any proceeding under this Act and may have the statements of the assessee or any other person recorded and any statement so recorded may thereafter be used in evidence in any proceeding under this Act. (6) If a person under this section is required to afford facility to the income-tax authority to inspect books of account or other documents or to check or verify any cash, stock or other valuable article or thing or to furnish any information or to have his statement recorded either refuses or evades to do so, the income-tax authority shall have all the powers u....
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....assessment years: Provided further that assessment or reassessment, if any, relating to any assessment year falling within the period of six assessment years referred to in this sub-section pending on the date of initiation of the search under section 132 or making of requisition under section 132A, as the case may be, shall abate. (2) If any proceeding initiated or any order of assessment or reassessment made under sub-section (1) has been annulled in appeal or any other legal proceeding, then, notwithstanding anything contained in sub-section (1) or section 153, the assessment or reassessment relating to any assessment year which has abated under the second proviso to sub-section (1), shall stand revived with effect from the date of receipt of the order of such annulment by the Commissioner: Provided that such revival shall cease to have effect, if such order of annulment is set aside. Explanation. - For the removal of doubts, it is hereby declared that,- (i) save as otherwise provided in this section, section 153B and section 153C, all other provisions of this Act shall apply to the assessment made under this section; (ii) in an assessment or reassessment made in respect o....
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....hstanding our reservations in reading two expressions in a given statute in the same manner as pointed out above, it must be accepted that in given cases it may be necessary to read different expression to convey the same meaning or to depart from the natural meaning of the language. However, in order to do so one must find the language of the statute to be ambiguous or the context of the statute such that it compels an interpretation that departs from the general rule. We therefore must examine whether there is any ambiguity in the language of Section 158B(a) or whether the scheme of the statutory provisions warrants reading the expression 'requisition was made' to mean when assets/books of account are received by the authorized officer. Para 24. Given the specific purpose of Explanation 2 to section 158BE, we cannot accept the contention that the same must be extended to interpret the meaning of 'Block Period' as defined by clause of (a) Section 158B of the Act. Para 25. In our view, the ordinary, natural meaning of the words used under Section 158B(a) need not be departed from. There is, first of all, no ambiguity in the language. Secondly, the definition of th....