Case Law Details
Late Mr. Lakhpatrai Agarwal Vs ACIT (Bombay High Court)
Bombay High Court held that as per provisions of section 153(3) of the Income Tax Act any order of fresh assessment in pursuance of an order under Section 254, 263 or 264 should be made within a period of 9 months from the end of the financial year in which the order is received. Order passed beyond the same will be time barred.
Facts- A survey u/s. 133A and search u/s. 132(1) of the Act was conducted at the residential premises of Late Mr. Lakhpatrai Agarwal. During search, jewellery pertaining to the petitioner was seized and the petitioner’s father gave a statement u/s. 132(4) of the Act admitting to undisclosed income to the tune of Rs. 28,04,308/-.
Thereafter, a notice u/s. 158BC of the Act was issued and served upon the assessee calling upon him to file his income tax return. Upon receipt of the notice, the petitioner’s father filed his return of income for the block period 1st April, 1996 to 13th August, 2002 declaring undisclosed income amount of Rs.28,04,308/- in form of Fixed Deposit Receipts.
On 29th December, 2004, the block assessment order u/s. 158BC(c) of the Act was passed assessing Rs. 52,82,278/- as against the declared return of income of Rs. 28,04,308/-. Being aggrieved, the petitioner preferred an appeal before Ld. Commissioner of Income Tax (Appeals) which was dismissed.
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