- (1.) In this appeal, challenge is laid to that part of the judgment of High Court of Delhi dated 15th December, 2006 whereby High Court has held that the block assessment proceedings initiated by the respondent-Department against the appellants herein have not become time barred, by giving the respondents benefit of the period during which proceedings were pending in the High Court, in view of some interim orders passed in those proceedings which remained operative till the writ petition filed by the appellants were decided finally. Factual background leading to the present appeal is as under:
(2.) Search and seizure took place in the business premises of the appellant companies on 22nd June, 1998 on the strength of warrant of autorization dated 19th June, 1998 which went upto in the morning hours of 23rd June, 1998. It was followed by further searches from time to time which went on till 5th August.
(3.) Notice under Section 158BC(c) of the Income Tax Act, 1961 (hereinafter referred to as the "Act') was issued on 28th June, 1999 requiring the appellants to furnish return for the block period from April 1, 1988 to 22nd June, 1998. This notice was withdrawn and another notice was issued on 26.07.1999. In response thereto, the appellants filed return for the aforesaid block period on 10th September, 1999. As per Section 158BE of the Act, assessment is to be completed within two years from the end of the month in which the last of the authorisation for search under Section 132 or for requisition under Section 132A, as the case may be. However, the assessing officer could not do so because of certain developments which took place and are narrated hereinafter.;