Case Law Details
Shri Ashok Kumar Aggarwal Vs ACIT (ITAT Delhi)
AO repudiates the return filed u/s 1 58BC (a) of the Act and proceeds to make an enquiry, he has to necessarily follow the provisions of section 142, 143(2) and 143(3) of the Act. In the case before us, the Department has not been able to negate the assertion of the assessee that no notice u/s 143(2) of the Act was issued by the AO prior to the framing of assessment u/s 158BC of the Act. Thus, the impugned assessment was framed without assumption of jurisdiction. Accordingly, respectfully following the ratio of the judgment of the Hon’ble Apex Court in the case of Hotel Blue Moon (supra), we quash the impugned assessment as being void ab initio having been framed without jurisdiction.
FULL TEXT OF THE ITAT JUDGMENT
This appeal, filed by the assessee, challenges the assessment made u/s 158BC of the Income Tax Act, 1961 (hereinafter referred to as “the Act”) for the block period relating to assessment years 1986-87 to 1996-97. The assessee’s appeal was earlier heard and disposed of by the Delhi Bench of the ITAT but as there was a difference of opinion between the two Hon’ble Members of the Bench on interpretation of Section 158BC of the Act, the matter was referred to the Third Member. Thereafter, aggrieved by the order of the Hon’ble Third Member, the Revenue approached the Hon’ble Delhi High Court. The Hon’ble Delhi High Court in ITA No. 167/2001, vide order dated 24.07.2014, on a concession by the assessee’s counsel remitted the matter for a fresh adjudication by the ITAT. Now, the appeal has been fixed before this Bench after remit from the Hon’ble High Court.
2. Brief facts of the case are that the assessee is an individual and during the relevant period was engaged in the business of purchase and sale of shares on its own behalf as well as on behalf of its customers. The assessee has been an income tax payee from assessment year 1988-89 and the return of income for assessment year 1994-95 had been filed before the search which took place on 17thOctober, 1993. The returns for assessment years 1995-96 and 1996-97 were filed after the search. The assessments for assessment years 1988-89 to 1994- 95 were completed before the search. Consequent to the search and seizure operation, a notice u/s 158BC of the Act was issued on 31.05.1996 and served upon the assessee on 21.06.1996. In response to the notice, the assessee did not offer any income as undisclosed income but furnished details of income, returned and assessed, falling within the block period. The Assessing Officer, however, vide order dated 31.10.1996, completed the assessment u/s 158BC(c) of the Act after computing the undisclosed income of the assessee at Rs. 13,13,49,778/-.
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