K.P.T. Thangal, Vice President - (1.) IT (SS) A No. 155/Mum/2002: This appeal is by the assessee for the block period 01.04.1988 to 31.03.1998 and broken period 01.04.1998 to 1709 1998.
(2.) The first ground of objection by the assessee is directed against the order of the CIT(A) in confirming the validity of the block assessment order passed on 28 11 2000. According to the assessee, this order is null and void as the order should have been passed on or before 30.09.2000, in accordance with the provisions of Section 158BE of the Income Tax Act, 1961. Facts leading to the dispute, briefly, is as under: During the period 17.09.1998 to 13.11.1998, there was a search and seizure action under Section 132(1), in the case of Al Samit International and its partners - Shri Gulam Mohd. Peshimam and Shri Javed Mohd. Peshimam. There was a search action on 17.09.1998 in the case of the assessee, being a recruitment consultant working with Al Samit International, at his residence, 303/304 Classic Corner, 136 Hill Road, Bandra West, Mumbai. All persons are connected with M/s Al Samit International. A common warrant was issued in the name of M/s Al Samit International, its two partners - Shri Gulam Mohd. Peshimam and Shri Javed Mohd. Peshimam; and the assessee, covenng residential premises of one of the partners, viz. Shri Javed Mohd. Peshimam at 501, 5th Floor, Classic Corner, Junction of Hill Road and St Andrews Road, Bandra West, Mumbai.
(3.) ACCORDING to the assessee, the assessment is bad in law as the period of two years laid down under Section 158BE commenced from the end of the month in which the last of the authorisation for search and seizure action was executed under Section 132. ACCORDING to the assessee, Explanation 2 to Section 158BE requires that authorisation referred to in Sub-section (1) of Section 158BE shall be deemed to have been executed in the case of search, on the conclusion of search as recorded in the last panchnama drawn in relation to any person in whose case the warrant of authorisation was issued In the case of the assessee, the panchnama was drawn on 17.09.1998. ACCORDING to the assessee, the panchnama drawn in the name of Shri Javed Mohd. Peshimam on 13.11 1998 is in the name of a different person and therefore the time limit for the completion of the block assessment in the case of the assessee ended on 30 09.2000 and not on 30,11.2000. This plea of the assessee was not accepted by the AO and also by the CIT(A).;