A. N. Dyaneswaran Vs CIT (Madras High Court)
Facts- The petitioner was subject to a block assessment for the period 01.04.1985 to 20.01.1996, pursuant to a search conducted at various places of the petitioner and his associates on 19/20.01.1996. Several incriminating documents were recovered and therefore based on the above such proceedings under Chapter XIVB of the Income Tax Act, 1961 were initiated. As per Section 158-BC of the Income Tax Act, 1961 the time limit for completion of block assessment was one year from the end of the month in which the last of the authorization of search under Section 132 or for requisition under authorization was made.
Under these circumstances, an Assessment order came to be passed on 31.01.1997 under Section 143(3) read with Section 158BC of the Income Tax Act, 1961.
Conclusion- The Income Tax Department has been not only careless in not pursuing and defending case of the revenue either before the Tribunal but also in pursuing the appeal before the Supreme Court and allowed the appeal against the order dated 3.9.2007 of the Division Bench of this court on account of delay.
However, there is no dispute that unaccounted cash and jewellery and valuables were recovered during the course of search conducted at the premises of the petitioner and the petitioner’s associates. These assets have to be taxed in the hands of the petitioner. To assess tax on the assets seized from the petitioner, there is no necessity for extending the petitioner the benefit of cross examination of witnesses.
FULL TEXT OF THE JUDGMENT/ORDER OF MADRAS HIGH COURT
The present writ petition has been filed by the petitioner for a writ of certiorari, to call for the records of the 2nd respondent in assessment proceedings in C.No.DCIT/C.C-II(4)/2013-14 dated 11.12.2013 and No.DCIT-II(4)/2013-14 dated 09.12.2013, pertaining to PAN No.AAFPD4407M vide communication dated 19.11.2013 and quash the same as having been initiated after a lapse of 6 years from the order of this Court in Tax Case (Appeal) No.150 of 2004 dated 03.09.2007.
2. The petitioner, a former Managing Director of Tamilnadu Minerals Limited (TAMIN) was subject to a block assessment for the period 01.04.1985 to 20.01.1996, pursuant to a search conducted at various places of the petitioner and his associates on 19/20.01.1996. Several incriminating documents were recovered and therefore based on the above such proceedings under Chapter XIVB of the Income Tax Act, 1961 were initiated. As per Section 158-BC of the Income Tax Act, 1961 as it stood there the time limit for completion of block assessment was one year from the end of the month in which the last of the authorization of search under Section 132 or for requisition under authorization was made.
3. Under these circumstances, an Assessment order came to be passed on 31.01.1997 under Section 143(3) read with Section 158BC of the Income Tax Act, 1961.
4. A very detailed order was passed by the Assistant Commissioner of Income Tax, Chennai on 30.01.1997 for the block period 1986-1987 to 1996-1997 upto 20.01.1996 being the date of the search. The order placed reliance on the following:-
List of Annexures
