Shri R. D. Agrawala, J.M. - (1.) THIS is a 1st appeal by the assessee under section 253(1)(b) of the Income-tax Act, 1961 (hereinafter referred to as the 'Act' for brief), against the order dated 30th of September, 1997 rendered by the Ld. Assistant Commissioner of Income-tax, Central, Allahabad, under section 158-BC/143(3) of the Act for the block period 1-4-86 to 14-9-96.
(2.) The first ground which has been taken by the assessee and which is in the nature of a serious preliminary ground challenging the very jurisdiction of the assessing officer in making the assessment is proposed to be disposed of firstly, runs as under : "Because the search operation cannot be said to have been validly initiated on 14-9-96 in the case of the appellant, as there existed no material (prior to the authorisation) which could lead to the formation of belief that his case fell in any of the 3 categories mentioned in Section 132(1) of the Act and consequently the block assessment order passed in pursuance of such proceedings is wholly illegal and without jurisdiction." 2.1 It is this preliminary ground alone which as also submitted by both sides is proposed to be disposed of by this order first as it would determine the Tribunal's jurisdiction to call for the records relating to the reasons authorising the search on which shall depend the manner in which the hearing of the appeal on the remaining grounds shall proceed. Elaborate submissions in respect of this ground were made by Shri S. K. Garg, F.C.A. and Shri Bharatji Agarwal, Senior Standing Counsel.
(3.) ASSESSEE before us is an individual, engaged in the medical profession, inter alia, running a premier private hospital by the name "Jeevan Jyoti" in the holy town of Allahabad. He (and his establishments) were subjected to search under section 132(1) of the Act on 14-9-1996. As per the department, during this search, cash jewellery and other valuables, apart from the stock of medicines and various other documents were found by the search party. Block assessment was completed in respect of the aforesaid period under the provisions of Chapter XIV-B of the Act, which is in challenge before us.;