COMMISSIONER OF INCOME TAX Vs. SUDHIR DHINGRA

JUDGEMENT

(1.) THESE appeals under Section 260A of the Income Tax Act, 1961 (hereafter "the Act") impugn an order dated 04.04.2008 of the Income Tax Appellate Tribunal (hereafter "the ITAT") in case of the respondent/assesses No.1 [in IT(SS)A No. 216/Del/2006 and CO. No.408/Del/2007 for the block period from 01.04.1990 to 20.08.2000] & the order dated 17.04.2009 of the ITAT in case of the respondent/assessee No. 2, [in IT(SS)A No. 84/Del/2007 for block period 01.04.1990 to 03.08.2000]. The question of law urged before this Court is whether the ITAT was correct in holding that a notice must be issued by the Assessing Officer ("the A.O" in short) within a reasonable period of time in relation to assessment proceedings under sections 158BC and 158BD of the Act.

(2.) THE facts which give rise to the present appeal are that the Respondent/Assessees are individuals. On 03.08.2000 a search was conducted under Section 132 of the Act at the business premises of M/s Friends Portfolio Pvt. Ltd. and at the residential premises of its Director, Shri Manoj Aggarwal. During the search and the course of investigation and assessment proceedings before the Deputy Commissioner of Income Tax (hereafter "the DCIT"), Central Circle -3, New Delhi, it was found that that Sh. Manoj Aggarwal provided bogus accommodation entries to various individuals. The beneficiaries included the present respondent -assessees who received accommodation entries in lieu of cash. The assessment u/s 158BC of M/s Friends Portfolio Ltd. was completed on 29.08.2002. The AO, after considering the materials, recorded to his satisfaction and issued a letter to the respective A.O.'s of the respective assessees No. 1 and 2. Thereafter, the case of the assessees was taken up for scrutiny as per the provisions of section 158BD and statutory notices u/s 143(2) and 142(1) were issued and served upon them.

(3.) THE Relevant dates in the present appeals are as follows: - <FRM>JUDGEMENT_463_LAWS(DLH)1_2015.htm</FRM>