2010 (8) TMI 1033

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.... 2009 (sic), a search was conducted in the premises of Shri Sumer Chand Jain, who is the father of the assessee herein. On the basis of certain documents seized in the said search, a notice dt. 19th April, 2004 under s. 158BD r/w s. 158BC of the IT Act, 1961 (hereinafter referred to as 'the Act') was served upon the assessee. The assessee thereafter moved an application dt. 5th May, 2004 seeking extension of time to file the return for the block period comprising of the asst. yrs. 1997-98 to 2003-04. Eventually, the return was filed on 24th May, 2004 declaring his income as 'nil'. The AO, however, made the assessment for the aforesaid block period by assessing the income at Rs. 25,61,147. The assessee filed an appeal before ....

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....wever, the fact remains that as on the date of the issue of the notice under s. 158BD r/w s. 158BC of the Act on 19th April, 2004, the jurisdiction vested with ITO, Ward 29(1) insofar as the assessee is concerned. It is thus clear that Asstt. CIT, Circle 36(1), New Delhi, on the date of issuance of notice, had no jurisdiction to issue such a notice. 4. Mr. Sahini accepts the aforesaid position. However, his submission is that no objection to the jurisdiction of the Asstt. CIT, Circle 36(1) was taken by the assessee within one month from the date on which he was served with the notice under s. 158BD of the Act and for this reason alone it was not competent on the part of the Tribunal to set aside the proceedings for want of jurisdiction. ....

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....on of an AO after the expiry of one month from the date on which he was served with notice under sub-s. (1) of s. 142 of the Act or after completion of assessment whichever is earlier. It is not in doubt that the plea of the jurisdiction was not raised by the assessee at all within one month from the date on which he was served with the notice under s. 158BD of the Act. Chapter XIV-B of the Act provides 'special procedure for assessment of search cases'. Thus, where the search has taken place and as a result thereof, the assessment for the 'block period' is required, specific procedure is provided under this chapter for completing the assessment. If the AO is satisfied that the documents or material seized in the search reve....