CIT v. Calcutta Knitwears - Taxpublishers.in

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The Tax Publishers2012 TaxPub(DT) 0359 (P&H-HC) : (2011) 338 ITR 0239 INCOME TAX ACT, 1961 --Search and seizure--Block assessment Time-limit for initiation of proceedings under section 158BD--Search proceedings were initiated against assessee and block assessment under section 158BC was framed. At a later date satisfaction under section 158BD was recorded and notice under was issued. Assessee held that the proceedings were bad in law as they were belated. AO contended that section 158BE does not specify any time-limit for recording of satisfaction and issuance of notice under section 158BD. Held: Assessee was justified, the proceedings under section 158BD were bad in law. The recording of satisfaction for taking action under section 158BD is necessary before the completion of block assessment under section 158BC. Income Tax Act, 1961 Section 158BC Income Tax Act, 1961 Section 158BD IN THE PUNJAB & HARYANA HIGH COURT ADARSH KUMAR GOEL & AJAY KUMAR MITTAL JJ. CIT v. Calcutta Knitwears Income-tax Appeal No. 154 of 2010 20 July 2010. Appellant by : Vivek Sethi JUDGMENT *Ajay Kumar Mittal J.* In this appeal filed under section 260A of the Income-tax Act, 1961 (in short 'the Act'), at the instance of the Revenue, it has been submitted that the following substantial questions of law arise in this appeal for the consideration of this court, from the order of the Income-tax Appellate Tribunal, Chandigarh Bench, 'B', Chandigarh (for short 'the Tribunal'), passed on 23-4-2009, in I.T./S.S. No. 20/CHD/ 2008 for the block period 1-4-1996, to 31-3-2002 : '1. Whether, on the facts and in law, the Hon'ble Income-tax Appellate Tribunal was justified in holding the recording of satisfaction under section 158BD by the assessing officer of the person searched and consequent issuance of notice under section 158BD on 10-2-2006, was belated and beyond the period prescribed by law when section 158BD read with section 158BE does not specify that satisfaction has to be recorded by the assessing officer before completion of assessment under section 158BC of the Income-tax Act, 1961, and no time limit has been provided for issue of notice under section 158BD of the Income-tax Act, 1961 ? SUBSCRIBE FOR FULL CONTENT

The Tax Publishers2012 TaxPub(DT) 0359 (P&H-HC) : (2011) 338 ITR 0239

INCOME TAX ACT, 1961

--Search and seizure--Block assessment Time-limit for initiation of proceedings under section 158BD--Search proceedings were initiated against assessee and block assessment under section 158BC was framed. At a later date satisfaction under section 158BD was recorded and notice under was issued. Assessee held that the proceedings were bad in law as they were belated. AO contended that section 158BE does not specify any time-limit for recording of satisfaction and issuance of notice under section 158BD. Held: Assessee was justified, the proceedings under section 158BD were bad in law. The recording of satisfaction for taking action under section 158BD is necessary before the completion of block assessment under section 158BC.

Income Tax Act, 1961 Section 158BC

Income Tax Act, 1961 Section 158BD

IN THE PUNJAB & HARYANA HIGH COURT

ADARSH KUMAR GOEL & AJAY KUMAR MITTAL JJ.

CIT v. Calcutta Knitwears

Income-tax Appeal No. 154 of 2010

20 July 2010.

Appellant by : Vivek Sethi

JUDGMENT

Ajay Kumar Mittal J.

In this appeal filed under section 260A of the Income-tax Act, 1961 (in short 'the Act'), at the instance of the Revenue, it has been submitted that the following substantial questions of law arise in this appeal for the consideration of this court, from the order of the Income-tax Appellate Tribunal, Chandigarh Bench, 'B', Chandigarh (for short 'the Tribunal'), passed on 23-4-2009, in I.T./S.S. No. 20/CHD/ 2008 for the block period 1-4-1996, to 31-3-2002 :

'1. Whether, on the facts and in law, the Hon'ble Income-tax Appellate Tribunal was justified in holding the recording of satisfaction under section 158BD by the assessing officer of the person searched and consequent issuance of notice under section 158BD on 10-2-2006, was belated and beyond the period prescribed by law when section 158BD read with section 158BE does not specify that satisfaction has to be recorded by the assessing officer before completion of assessment under section 158BC of the Income-tax Act, 1961, and no time limit has been provided for issue of notice under section 158BD of the Income-tax Act, 1961 ?