TaxTMI 
TaxTMI 
2017 (1) TMI 807
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....tment. This is an Income Tax appeal filed under Section 260-A of the Income Tax Act, 1961 against the order of the Tribunal dated 09.03.2007, for the block period ending on 21.08.2000. The questions of law sought to be answered are as under:- "(1) Whether the Tribunal was right in law in holding that the Block assessment order dated 29.08.2002 u/s 158BC was barred by limitation without appreciating the facts that the action u/s 132A was executed in respect of authorization for requisition u/s 132A of the I.T. Act, 1961 dated 15.06.1995 and therefore the section 158BE (1) (b) is applicable in this case and not in section 158BE (1) (a). Accordingly the limitation was two years from the end of the month in which the authorization w....
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.... CBI did not handover it to the department as the investigation was under progress. The Court of Special Judge, New Delhi, vide order dated 07.09.1998 exonerated Shri Arif Mohd. Khan in the said case No.13/96 from the charges leveled against him. On assessee's application No.RCI (A)/95 ACU-VI CBI/ACU-VI, Special Judge Delhi passed an order dated 03.03.2000 that since the case against Shri Arif Mohd. Khan had already been decided in his favour, Locker No. 885 of U & I Vaults NDSE part-1, New Delhi can be operated by its rightful owner in accordance with the prescribed rules and procedure. From the said order, it also transpired that CBI had filed its reply stating that from the said locker unaccounted jewellery worth more than Rs. 70 lac....
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.... By accepting the additional ground of appeal of the assessee that the order is barred by limitation, the ITAT observed that block assessment order passed on 29.08.2002, is not a valid order, as it has been passed after the stipulated period of limitation and thus quashed the assessment order and dismissed the departmental appeal. The ITAT have stated in their order that case of the assessee is covered by clause (a) to sub section 1 of section 158BE as requisition u/s 132A of the Act was issued by the department before 01.01.1997 i.e. on 11.09.1995. Since,the requisition was executed on 21.08.2000(the date on which the CBI handed over the seized material/jewellery, to the Income Tax Department), assessment was to be completed within one ....
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....n was made which was extending the period of limitation and would make the provisions of Section 158BE (1) (b) of the Act applicable to the case of the assessee. Despite giving several opportunities, the department was unable to produce the record. However, there is sufficient material on record of the case, which is sufficient to decide the issue of limitation as in Paragraph-21 of the Tribunal's order, it has extensively dealt with the issue of limitation from which it becomes abundantly clear that since the requisition under Section 132A of the Act was issued by the Department before the 1st day of January, 1997 that is on 11.9.1995 and since the requisition was executed on 21.8.2000, the date on which, the CBI handed over the seized....