LAKSHMI JEWELLARY Vs. DEPUTY COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) SEVERAL questions have been raised by the appellant. We have heard counsel for the appellant at length. We have also heard counsel for the Revenue. The appeal is admitted and is also being disposed of by this order.

(2.) THERE was a search in the premises of the appellant on the 28th and 29th of September, 1995. The appellant is a firm, which carries on business in jewellery. After the search, an assessment was made within the period allowed by law, on the 30th of September, 1996. The assessment so made was challenged before the Tribunal. The Tribunal upheld some of the additions made, and with regard to some others it set aside the additions that had been made as before making such additions the report which the Assessing Officer had relied upon had not been furnished to the appellant.

(3.) THE opening part of this definition specifies that "block period" means the previous years relevant to ten assessment years, which precede the previous year in which the search was conducted under Section 132 or any requisition was made under Section 132A. Having so specified, a further addition is made for a block period by the latter part of the definition, which states that it would also include in the previous year in which the search was conducted or requisition made, the period up to the date of the commencement of such search or the date of requisition. THE definition, could have been worded with greater clarity. However, the definition must be understood with the aid of the language used therein. THE definition appears to be in two parts. First, it says that it means the previous years relevant to ten assessment years preceding the previous year in which the search was conducted or requisition made. THEreafter, an addition is made to that period by stating that the block period also includes in the previous year in which the search was made, the period up to the date of search. THE submission made by counsel for the appellant that the word "includes" should be related to the specification to the previous years relevant to ten assessment years is difficult to accept. Reference to "the previous years relevant to the ten assessment years" is followed by the words "preceding the previous year". It is, therefore, clear that no part of the previous year in which the search was conducted can be regarded as forming part of the "previous years relevant to the ten assessment years" referred to in the opening part of the definition. THE words "and includes", which occur in the later part of the definition are words which can only be regarded as relevant to the term "block period" as the inclusion of the additional period to which reference is made after the words "and includes" can only be for the purpose of regarding that period also as forming part of the block period.