CIT Vs. MANGILAL RAMESHWAR LAL

JUDGEMENT

(1.) THIS appeal and the cross objections have been filed by the Revenue and the assessee, respectively, against the order of the learned Tribunal dt. 19.3.2004. Before the Tribunal cross appeals were filed; one by the assessee, and the other by the Revenue. The matter relates to block assessment, for the block period 1987 -88 to 1997 98. The appeal has been admitted, vide order dt. 17.12.2004, by framing following substantial questions of law.

(2.) THEREAFTER the assessee filed cross objections, exercising his right under Section 260A(7) read with Order 41 Rule 22 C.P.C., and this Court, vide order dt. 7.7.2005, admitted the cross objections, by framing following substantial question of law: Whether the ITAT has misconstrued the provisions of Section 158BE providing for limitation for completion of block assessment and has grossly erred in rejecting the ground of limitation raised by the respondent - assessee before the ITAT.

(3.) ON the other hand Learned Counsel for the Revenue supported the impugned judgment on the question of limitation by contending that the notice was given to the assessee on the basis of books of account or other documents seized, and since the seizure took place on 3.1.97, therefore, the period of two years was available for making final assessment, and therefore, the assessment cannot be said to be time barred.