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Section 158BC of the Income-tax Act, 1961 - Block assessment in search cases - Procedure for Proceeding under Chapter XIV-B is a proceeding different from proceeding under section 143(3); therefore, simply because of fact that assessment for block period shall cover period of regular assessment, latter cannot be said to merge with assessment to be made under section 158BC [Assessment year 1998-99] [Block period 1-4-1996 to 29-10-2002] [In favour of revenue] CIT v. Md. Rizwan [2009] 316 ITR 317 (Pat.) During the pendency of appeal against regular assessment for the assessment year 1998-99, a search and seizure operation was conducted in the premises of the assessee and pursuant to a notice under section 158BC, the assessee filed the return for the block period 1-4-1996 to 29-10-2002. The assessee brought the aforesaid fact to the notice of the Tribunal and contended that the assessment for the assessment year 1998-99 shall be merged with the assessment of the block period 1-4-1996 to 29-10-2002, of which the assessment had to be made under section 158BC. The Tribunal accepted the assessee's contention and held that since the assessment for the assessment year 1998-99 had merged with the assessment for the block period 1-4-1996 to 29-10-2002, to be made under section 158BC, the matter was to be restored back to the Assessing Officer. Held that proceeding under Chapter XIV-B is a different proceeding from proceeding under section 143(3). Therefore, simply because of the fact that assessment for the block period shall cover the period of regular assessment, latter cannot be said to merge with the assessment to be made under section 158BC. In that view of the matter, the Tribunal erred in holding that assessment framed for the assessment year 1998-99 under section 143(3) shall merge with the assessment to be made under section 158BC for the block period 1-4-1996 to 29-10-2002. There could be a regular assessment in addition to a block assessment under Chapter XIV-B. Rishi Raj Sinha for the Appellant. Brejendra Kumar for the Respondent. JUDGMENT The Commissioner of Income-tax aggrieved by the order dated November 10, 2003, passed by the Patna Bench of the Income-tax…

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