2016 (12) TMI 1654

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.... "1. Whether the findings of the Tribunal are perverse in holding that for the purpose of limitation under section 158BE, the period is to be counted from the date on which the direction under section 142(2A) is served on the assessee and not from the date of issue of direction by the Assessing Officer under section 142(2A) ? 2. Whether the order of the Tribunal is perverse in holding that the block assessment order was barred by limitation despite there being specific provision of section 158BE Explanation 1 clause (ii) that period for exclusion will commence from the day on which the Assessing Officer gives a direction under section 142(2A) ?" 3. The brief facts of the case are that the assessee is a partner of M/s. Jai....

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....pon the assessee fixing the case for hearing on January 10, 2001, subsequently the then Assessing Officers, having jurisdiction over this case issued further notices under sections 143(2) and 142(1) coupled with query letters, which were duly served upon the assessee pursuant to which the assessee made partial compliance. Having regard to the peculiar nature and complexity involved in the seized books of account and documents, and in the background of : (a) No maintenance of regular or proper books of account with regard to certain business activities ; (b) Close inter-connection and inter-linking with business associates and seizure of incriminating documents and duplicate sets of accounts, etc., showing substantial tax evasion ; (c) Incom....

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....quired by the assessee on January 23, 2001. The audit report was submitted by the assessee on July 17, 2001. 5. Therefore, the questions which came for the consideration is as to whether the order of the assessment which has been passed on August 24, 2001 is time barred or not. For deciding this issue, it will be apt to reproduce provisions of section 158BE which reads as under : "158BE. (1) The order under section 158BC shall be passed,- (a) within one year from the end of the month in which the last of the authorisations for search under section 132 or for requisition under section 132A, as the case may be, was executed in cases where a search is initiated or books of account or other documents or any assets are requi....

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....A) of section 142 and ending on the day on which the assessee is required to furnish a report of such audit under that sub-section ; or (iii) the time taken in reopening the whole or any part of the proceeding or giving an opportunity to the assessee to be re-heard under the proviso to section 129 ; or (iv) in a case where an application made before the Settlement Commission under section 245C is rejected by it or is not allowed to be proceeded with by it, the period commencing on the date on which such application is made and ending with the date on which the order under sub-section (1) of section 245D is received by the Principal Commissioner or Commissioner under sub-section (2) of that section, shall be exclud....

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.... (i) Trustees of H.E.H. the Nizam's Supplemental Family Trust v. CIT reported in [2000] 242 ITR 381 (SC) ; and (ii) Decision of the Kerala High Court in Cochin Plantations Ltd. v. State of Kerala [1997] 227 ITR 38 (Ker) and CIT v. N. C. John and Sons Ltd. [2002] 253 ITR 524 (Ker) ; [2002] 172 CTR (Ker) 685. 8. We have heard counsel for the appellant. 9. In this appeal, sub-clause (ii) is required to be interpreted. However, counsel for the appellant has taken us to sections 153 and 153A which came up for consideration before the Kerala High Court and other courts. 10. It cannot be disputed that the period of exclusion will commence from the day on which the Assessing Officer gives a direction under section 142(2A) an....