Income Tax Appellate Tribunal - Mumbai
Late Smt. Snehlata Hedao, Mumbai vs Department Of Income Tax on 21 June, 2007
IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI "J" BENCH, MUMBAI Before Shri Pramod Kumar, (Accountant Member), and Smt. P. Madhavi Devi, (Judicial Member) ITSSA No.63/Mum./2008 Block Period : From 1.4.1995 to 21.2.2002 Date of Hearing - 18.3.2010 Deputy Commissioner of Income Tax, 25(3) C-11, R.No.308, Pratyakshakar Bhavan Bandra-Kurla Complex, Bandra (E) Mumbai 400 051 ....................... Appellant Vs Late Smt. Snehlata Hedao, C - 202, Gokul Complex, Kandivali (E), Mumbai 400 051 ..................... Respondent PAN - Not Available in File C.O. No.173/Mum./2008 ITSSA No.63/Mum./2008 Block Period : From 1.4.1995 to 21.2.2002 Date of Hearing - 18.3.2010 Late Smt. Snehlata Hedao, C - 202, Gokul Complex, Kandivali (E), Mumbai 400 051 PAN - Not Available in File ....................... Cross Objector Vs Deputy Commissioner of Income Tax, 25(3) C-11, R.No.308, Pratyakshakar Bhavan Bandra-Kurla Complex, Bandra (E) Mumbai 400 051 ..................... Respondent Revenue by : Shri N.K. Bhalodia Assessee by : Shri S.M. Bandi ITSSA No.63/Mum./2008 C.O. No.173/ Mum./2008 Late Smt. Snehlata Hedao [2] O R D E R Per Pramod Kumar A.M. This revenue's appeal and also assessee's cross objection are directed against ld. Commissioner (Appeals)'s order dated 21 st June 2007, in the matter of block assessment u/s 158BD of the Income Tax Act, 1961 (for short "the Act"), for the period from 1st April 1995 to 21 st February 2002, while the appeal filed by the Revenue challenges correctness of relief granted by the learned CIT(A), in respect of additions made in the course of aforesaid block assessments the questions' validity of impugned assessment itself.
2. We will take up the cross objection first.
3. Grievance of the assessee is that since proceedings u/s 158BD were not initiated before completion of assessment u/s 158BC i.e., the person on whom search and seizure operation was carried out, the very initiation of block proceedings is ab-initio bad in law.
4. The material facts are not in dispute. The assessment u/s 158BC, on Seth Developers, was completed on 30 th March 2004, and the block assessment proceedings against assessee before us were initiated in March 2005 - finally serving the notice u/s 158BD on 8 th May 2005. Thus, proceedings u/s 158BD were thus initiated well after completion of related assessment proceedings u/s 158BC. Learned Departmental Representative does not dispute this factual position but contends that there is no specific bar on initiation of proceedings u/s 158BD even after completion of proceedings u/s 158BC on the assessee who is subjected to search and seizure operations.
ITSSA No.63/Mum./2008 C.O. No.173/ Mum./2008 Late Smt. Snehlata Hedao [3]
5. We find that the above issue is now covered in favour of the assessee by a Five Member Bench of this Tribunal in the case of Majoj Agrawal Vs DCIT, 113 ITD 377 (SB). The satisfaction of the Assessing Officer has to be arrived at before completing the block assessment u/s 158BC on the person whose premises is subjected to search operations. That condition is admittedly not satisfied on the facts of the present case. The very initiation of proceedings u/s 158 BD is, therefore, bad in law. We, therefore, quash the assessment order passed u/s 158BD. The cross objection is, thus, allowed.
6. As we have quashed the impugned block assessment itself, grievances related to the merits of the additions are rendered infructuous and call for no adjudication at this stage. Accordingly, appeal of the Revenue is to be dismissed as infructuous.
7. In the result, while assessee's cross objection is allowed, appeal filed by the Revenue is dismissed as infructuous. Pronounced in the open court today on 24th day of March 2010.
Sd/- Sd/-
(P. Madhavi Devi) (Pramod Kumar)
Judicial Member Accountant Member
Mumbai; 24th day of March 2010
ITSSA No.63/Mum./2008
C.O. No.173/ Mum./2008
Late Smt. Snehlata Hedao
[4]
Copies of the order forwarded to :
(1) The Appellant
(2) The Respondent
(3) CIT, Mumbai
(4) CIT(A), Mumbai
(5) DR, "J" Bench
(6) Guard File
True Copy
By Order, etc.
Assistant Registrar
Income Tax Appellate Tribunal
Pradeep J. Chowdhury Mumbai Benches
Sr. Private Secretary
ITSSA No.63/Mum./2008
C.O. No.173/ Mum./2008
Late Smt. Snehlata Hedao
[5]
Date Initial
1. Draft dictated on 19.3.2010 Sr.PS
2. Draft placed before author 22.3.2010 Sr.PS
3. Draft proposed & placed before the 22.3.2010 JM/AM
second member
4. Draft discussed/approved by Second 22.3.2010 JM/AM
Member
5. Approved Draft comes to the 23.3.2010 Sr.PS/PS
Sr.PS/PS
6. Date of pronouncement 24.3.2010 Sr.PS
7. File sent to the Bench Clerk Sr.PS
8. Date on which file goes to the Head Clerk
9. Date of dispatch of Order