SHIBANI DUTTA Vs. CIT

JUDGEMENT

(1.) This is an appeal by the assessee under Section 260A of the Income Tax Act, 1961 (hereinafter referred to as the "Act?). By order dated 13.03.2012, the following substantial question of law was framed: -

(2.) The brief facts giving rise to the present appeal may be noticed. The assessee is an individual deriving income from house property, interest and dividend. On 28.04.2000 a search was conducted under Section 132 of the Act in her residential premises at Flat No. 353, Block-A, Sarita Vihar, New Delhi. The search was concluded on 20.06.2000, when the last of the authorisations for the search was executed. On 15.05.2002, an order under Section 127 of the Act was passed which was to take effect from 15.05.2000. By this order the assessee?s case was transferred from Income Tax Officer, Ward 7(2) Bangalore to DCIT, Central Circle 25, New Delhi. This officer issued a notice on 11.06.2002, calling upon the assessee (under Section 158BC) to file a block return of income. The notice was served on the assessee on the same day and she filed a block return in Form No. 2B declaring undisclosed income of Rs. nil. The return was filed on 26.04.2002. After hearing the assessee, the block assessment under Section 158BC was completed by the DCIT, Central Circle 25, New Delhi (hereinafter referred to as the "Assessing Officer?), by order dated 30.07.2002. In this assessment order the undisclosed income of the assessee was determined at Rs. 13,62,730/-.

(3.) The assessee challenged the assessment in appeal before the CIT (Appeals). By order dated 27.03.2003 the CIT (Appeals) allowed the appeal and deleted the additions made in the block assessment order as the assessee?s undisclosed income. In the appeal the assessee had also raised a plea that the assessment order was barred by limitation prescribed in Section 158BE (1) (b). This contention was dealt with by the CIT (Appeals) in para 3 of his order and the same is reproduced below: -