Case Law Details
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.
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