CIT Vs Vedanta Limited (Madras High Court)
Madras High Court held that block assessment order passed u/s. 143(3) r.w.s. 158BC of the Income Tax Act has been passed within the period prescribed u/s. 158BE(1)(b) of the Income Tax Act and hence not barred by limitation.
Facts- A search was conducted at the premises of the respondent assessee on 08.12.1999. About 108 files were seized from the custody of the Respondent-Assessee. However, the search was not completed on 08.12.1999. Therefore, a Prohibitory Order was passed u/s. 132(3) of the Income Tax Act, 1961 on 09.12.1999.
Subsequently, the search was continued on 21.01.2000. About 14 items were seized. The search was however inconclusive on 21.01.2000. An inventory was drawn in the Panchnama on 21.01.2000. Once again another Prohibitory Order was also passed on the same day i.e., on 21.01.2000 by the Respondent-Assessee in respect of documents in almirah in the room of the GM (F&A). The search was continued on 02.03.2000. The search was ultimately concluded on 02.03.2000. Thus, on 02.03.2000, the Prohibitory Order dated 21.01.2000 was lifted. No fresh material was recovered during the search conducted on 02.03.2000.
A Notice dated 08.06.2000 was issued u/s. 158BC of the Income Tax Act, 1961 and the proceedings thus culminated in the aforesaid Block Assessment Order dated 28.03.2002 u/s. 143(3) r.w.s. 158BC of the Income Tax Act, 1961 as it stood then. A sum of Rs.44,56,14,656/- was added to the income of the Respondent-Assessee as “undisclosed income”.
