COMMISSIONER OF INCOME TAX Vs. N T JOHN

JUDGEMENT

(1.) This Writ Appeal is filed against the judgment of a learned Single Judge in O.P. No. 12087 of 1996. The Original Petition was filed by the respondents for quashing Ext. P4 notice relating to the assessment year 1993-94 and to command the second respondent to issue notices under S.158 BC of the Income Tax Act, 1961 (hereinafter referred to as the Act) for the block period. The facts of the case are as follows:

(2.) Respondent (petitioner in the Original Petition) is a practising Advocate with 20 years of standing in the bar. He has been assessed to income tax for the last 10 years. His assessments are up - to - date and there is no arrears of tax due to the Department. In his latest assessment, he had disclosed a total income of Rs. 95,180/- for the assessment year 1995-96 and the same was accepted under S.143(1) of the Act.

(3.) On 23.2.1996, the petitioners place was searched under the powers conferred on the Income Tax Authorities by S.132 of the Act. One Assistant Director of Income Tax (Inv) and several officers and men of the Income Tax Department took part in the search operation and the action continued upto 24.2.1996. After search a Panchanama dated 24.2.1996 was prepared, copy of which is produced as Ext. P1. It is submitted that after 1.7.1995, all cases where search and seizer operations were conducted by the Department under S.132 of the Act, the assessments of the income detected as a result of search and seizer are to be completed under the new provisions of Chapter XIV - B introduced in the Act in 1995. Under the new procedure for assessment of undisclosed income, the undisclosed income was spread over of 10 previous years called block years and after deducting whatever income is assessed / disclosed by the assessee the balance will be subjected to 609 tax leaving 40% to the assessee according to S.113 of the Act.