ASHWANI KUMAR GOEL Vs. INCOME TAX SETTLEMENT COMMISSION

JUDGEMENT

(1.) The petitioner seeks a direction challenging an order of 04.03.2008 issued by the Income Tax Settlement Commission, which rejected the petitioner's application that the assessment for the period 01.04.1986 to 07.04.1987 was time barred. On 07.08.1997, search and seizure operations were conducted at the residential and business premises in respect of the petitioner, his wife and other relatives. Several articles and documents were seized. The last panchnama was drawn on 26.09.1997. Upon receipt of notice, the petitioner filed a return for the period 01.04.1986 to 07.04.1987.

(2.) After hearing counsel for the parties, the Settlement Commission rejected the petitioner's argument. Learned counsel relied upon the ruling of the Supreme Court reported as Brij Lal & Others v. Commissioner of Income Tax, 2011 1 SCC 1, for the following observations :

(3.) It was submitted that the Assessing Officer was always free to complete the assessment within the time period permitted by law, and was not constrained from making any order. Since he did not do so, the Settlement Commission which was invested with his powers could not likewise have proceeded further. It was submitted that the amendment made to Section 158 BE by the Finance Act, 2002 could not be made applicable in the present case as the block assessment had become time barred on 29.02.2000. Counsel reiterated that Settlement Commission did not enjoy exclusive jurisdiction by virtue of Section 25-F(1) prior to the passing of an order under Section 245-D(1) of the Income Tax Act. In support, counsel relied upon the Damini Brothers case .