- (1.) THIS appeal was admitted to consider the following substantial questions of law as framed in the memorandum of appeal. "(a) Whether the Tribunal was correct in holding that it has no power to look into a validity of a search for the purpose of determining the jurisdiction for making a block assessment under chapter XIB of the Income Tax Act? (b) Whether on the facts and circumstances of the case has the Assessing Officer assumed valid jurisdiction in law for the purpose of making a block assessment under chapter XIB of the Income Tax Act? (c) Whether the Tribunal was justified in holding that the power of Assessing Officer to issue notice under Section 15BBC of the Act and commence block assessment proceedings is automatic on the receipt of the appraisal report without being satisfied that there was a valid search -
(2.) THE assessee challenged the order of assessment pasted in the case of block assessment on the ground that the very search is illegal and contrary to law, therefore, the entire order it void ab initio. The Tribunal was of the view that it had no jurisdiction to examine the authorisation of the search for the simple reason that such authorisation does not result directly in any tax demand on the assessee. Since the preference of appeal is with reference to any tax liability imposed on the assessee, the Tribunal came to the conclusion that it could not go into the aspect of authorization of search, whether proper or improper, with or without jurisdiction etc. Thereafter, it proceeded to decide the case on merits.
(3.) THEREFORE , the first substantial question of law framed is "Whether the Tribunal was correct in holding that it has no power to look into a validity of a search for the purpose of determining the jurisdiction for making a block assessment under chapter XIB of the Income Tax Act.;