TaxTMI 
TaxTMI 
TaxTMI 
2015 (8) TMI 268
X X X X Extracts X X X X
X X X X Extracts X X X X
..... Following this, notice under s. 158BC of the IT Act ('the Act' for short) was issued to the aforesaid person on 8th March, 2001. While matters stood thus, Sri Shinde expired on 22nd Jan., 2002 and his legal heirs were brought on the party array. The AO completed the assessment as per Annex. A order dt. 27th Nov., 2002, which show that Sri Shinde was carrying on business along with one A. Rahim and that therefore, the income earned in such business should be assessed in the hands of the AOP consisting of Sri Shinde and Sri A. Rahim. It has been so stated in Annex. A order, which reads thus : "5...... As stated in the foregoing paras, late Shri Boban Jagannath Shinde has earned income in joint business with Shri A. Rahim and hence ....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... instant case. On these grounds, the learned counsel contended that the findings in Annex. D order are incorrect and illegal. 5. The learned standing counsel for the respondent contradicted each of these contentions and canvassed to sustain Annex. D order. 6. We have considered the submissions made. 7. The first contention raised by the learned counsel for the appellant is one of time-bar. The contention of time-bar was accepted by the CIT(A) in Annex. C order. The basic premise on which this contention is raised is that the assessment completed against the AOP is under s. 158BC. However, the assessment completed against the person other than the person searched can only be under s. 158BD of the Act. Yet another contention raised is that....
X X X X Extracts X X X X
X X X X Extracts X X X X
..../w s. 158BC. The assessee also does not dispute this position. But the only question raised is whether the notice issued by the Department based on which the block assessment was completed is valid or not. What we find from s. 158BD is that no independent notice is contemplated under the said section because it only gives jurisdiction to the AO to assess a person other than the searched person based on materials gathered during search. What is stated in s. 158BD is that when any evidence is collected about income earned by a person other than the person searched under s. 132, the officer who conducted the search shall hand over those materials and evidence to the AO having jurisdiction over such other person to be proceeded for assessment, ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....t under the CPC, 1908 (5 of 1908). (2) Any such notice or requisition may be addressed- (c) in the case of any other association or BOI, to the principal officer or any member thereof;' 'Sec. 292B : No return of income, assessment, notice, summons or other proceeding, furnished or made or issued or taken or purported to have been furnished or made or issued or taken in pursuance of any of the provisions of this Act shall be invalid or shall be deemed to be invalid merely by reason of any mistake, defect or omission in such return of income, assessment, notice, summons or other proceeding if such return of income, assessment, notice, summons or other proceeding is in substance and effect in conformity with or according to the inte....
X X X X Extracts X X X X
X X X X Extracts X X X X
....e notice satisfy the requirement of a notice under s. 158BC as well. Therefore, in our view, the notice served on the assessee has to be necessarily taken as a notice issued under s. 158BC r/w s. 158BD, and not an independent notice under s. 158BD as held by the Tribunal, As already found by us the assessee rightly understood the notice as one issued under s. 158BD r/w s. 158BC and in fact the assessee correctly responded by filing return in Form 2B. The Tribunal misdirected themselves to reach the wrong conclusion, because they have not cared to go through the contents of the notice and to find out under what provision the notice is issued. So much so, we hold that the finding of the Tribunal that the notice is one issued under s. 158BD al....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ent. Therefore, we are unable to accept this contention either. 10. The third contention raised is that the AO should not have resorted to an estimation of the income. While it is true that pure estimation of the income is impermissible in a proceedings under s. 158BD. the question as to whether such estimation has been done in this case has to be gathered from the materials before this Court. Paragraph No. 4 of Annex. A order reads thus : "In my letter dt. 21st Oct., 2002 on p. 2 para. 3, I have called for the objections from the legal heirs on my proposal to bring to assessment a sum of Rs. 4,80,000 as profit earned by late Sri Boban Jagannath Shinde in his joint business with Shri A. Rahim in manufacturing and sale of gold ornaments on....