INCOME TAX ACT, 1961

Section 158BE read with Section 153

Search and Seizure - Block assessment - Limitation under section 158BE -

Assessee challenged Block Assessment Order passed on 13-11-2000 on the ground of limitation. He submitted that since the order under section 142(2A) was passed on 17-4-2000 but was served upon him only on 20-4-2000, therefore, the period commencing from 20-4-2000 till 31-7-2000 viz., 102 days only would be excluded and added to the period of limitation for passing the Block Assessment which otherwise required to be passed on 31-7-2000, but was actually passed on 13-11-2000 viz., beyond 102 days of the excluded period of limitation and hence, the Block Assessment was hit by limitation as prescribed in section 158BE read with section 153. Held: Section 158BE excludes the period commencing from the date on which the AO directs the assessee to get his accounts audited, viz., the date of the order under section 142(2A). The date of order or direction to get the accounts audited is important and not the date on which such order or direction under section 142(2A) is served on the assessee or received by the assessee. In subject case, the order under section 142(2A) was made by AO on 17-4-2000 directing the assessee to get the special audit completed and furnished the report on or before 31-7-2000. The difference between the said two dates was 105 days and when those 105 days were added to the last date before which the Audit Report was furnished viz., 31-7-2000, the date of assessment would get extended upto 13-11-2000. Therefore, as assessment for block period was made by the AO admittedly on 13-11-2000 itself, apparently the said assessment was within limitation.

Relied:Nokia India Private Limited v. Addl. CIT & Anr. (2018) 402 ITR 517 (Delhi) : 2018 TaxPub(DT) 1399 (Del-HC)

REFERRED :

FAVOUR : Against the assessee.

A.Y. :

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