TaxTMI 
TaxTMI 
2008 (1) TMI 380
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....de hors the material on record, appreciating the factual circumstances of the case? 2. Whether, in the facts and circumstances of the case, the learned Tribunal was justified in deleting the entire trading additions so also the addition of Rs. 5,50,559 on account of unexplained opening capital made by the Assessing Officer?" 3. Thereafter, the assessee filed cross-objections, exercising his right under section 260A(7) read with Order 41, rule 22 of the Civil Procedure Code, and this court, vide order dated July 7, 2005, admitted the cross-objections, by framing the following substantial question of law: "Whether the Income-tax Appellate Tribunal has misconstrued the provisions of section 158BE providing for limitation for completion of block assessment and has grossly erred in rejecting the ground of limitation raised by the respondent-assessee before the Income-tax Appellate Tribunal." 4. It is contended by the learned counsel for the assessee, that the learned Tribunal has grossly erred in proceeding on a basis that in the present case books of account were seized on January 3, 1997, and the words appearing in section 158BE(2)(b) are "books of account required" and, t....
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....rch 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 requisitioned on or after the 1st day of January, 1997. (2) The period of limitation for completion of block assessment in the case of the other person referred to in section 158BD shall be- (a) one year from the end of the month in which the notice under this Chapter was served on such other person in respect of search initiated or books of account or other documents or any assets requisitioned after the 30th day of June, 1995, but before the 1st day of January, 1997; and (b) two years from the end of the month in which the notice under this Chapter was served on such other person in respect of search initiated or books of account or other documents or any assets are requisitioned on or after the 1st day of January, 1997. Explanation 1. - In computing the period of limitation for the purposes of this section, (i) the period during which the assessment proceeding is stayed by an order or injunction of any court; or (ii) the period commencing from the day on which the Assessing Of....
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....comprehends two eventualities : one being notice should have been served on such other person in respect of search initiated, and the other eventuality being that books of account or other documents or any assets should have been requisitioned. Obviously, this sub-section applies to cases referred to cases in section 158BD, and a look at section 158BD shows that it provides that where the Assessing Officer is satisfied that any undisclosed income belongs to any person, other than the person with respect to whom search was made under section 132 or whose books of account or other documents or any assets were requisitioned under section 132A, then such books of account, etc., are to be handed over to the Assessing Officer having jurisdiction over such other person, and the Assessing Officer is to proceed under sections 158BC, against such other person. Then, a look at sections 132 and 132A shows that for the present purposes section 132 covers cases of search, while section 132A confers the power to requisition books of account, and obviously a reading of the two provisions shows that the two have their independent field of operation. 11. In view of the above, since, in the presen....
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.... the words used in sub-section (2) are "in respect of search initiated or books of account or other documents or any assets requisitioned". 13. Thus, actual conducting of search is not given any relevance in either of these two sub-sections. Since, in the present case, we are concerned with sub-section (2), we only have to find out as to when the search was initiated. Obviously, since the search warrant was issued admittedly on December 30, 1996, the initiation of search, could on no parameters be said to have not commenced, in any case, on this date. We make it clear that we are not examining in this case, the precise point as to when the search can be said to have initiated, since the facts in this case are clear that search warrant was issued on December 30, 1996, obviously the search must have been initiated even some times earlier to which date we need not go as even this December 30, 1996, is a date prior to January 1, 1997. And, therefore, the matter is covered by clause (a) providing one year's limitation. 14. The starting point of limitation for the purpose of section 158BE(2) is from the end of the month in which the notice under this Chapter was served. In the pres....