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[2008] 175 Taxman 1 (Delhi)/[2009] 308 ITR 116 (Delhi)/[2009] 221 CTR 307 (Delhi) [2008] 175 Taxman 1 (Delhi) HIGH COURT OF DELHI Commissioner of Income-tax, Delhi-II v. Deepak Aggarwal* BADAR DURREZ AHMED AND RAJIV SHAKDHER, JJ. IT APPEAL NOS. 953 AND 954 OF 2008 AUGUST 12, 2008 Section 158BE, read with sections 132 and 158BBC, of the Income-tax Act, 1961 - Block assessment in search cases - Time-limit for completion of - A search under section 132 was conducted on assessee's premises as per warrant dated 31-10-2000 - Although in view of provisions of section 158BE(1)(b), block assessment under section 158BC should have been completed on or before 31-10-2002, yet it was completed on 27-12-2002 - Thus, assessee's case was that block assessment so made was barred by limitation - However, revenue's case was that on 31-10-2000, a prohibitory order under section 132(3) was passed in respect of inventory of stock which had continued till it was revoked vide panchnama dated 23-12-2000 - Accordingly, revenue contended that period of limitation had to start from 31-12-2000 and, consequently, block assessment made on 27-12-2002 was well within time - Tribunal, however, opined that revocation order dated 23-12-2000 did not amount to execution of search as no asset was seized under said order and what happened was only revocation of prohibitory order passed earlier - Accordingly, Tribunal concluded that block assessment-in-question was barred by limitation - Whether, on facts, revocation order dated 23-12-2000 did give an indication that prohibitory order under section 132(3) had been passed merely for continuing search, possibly for purposes of extending limitation - Held, yes - Whether, moreover, since there was no explanation forthcoming from revenue as to what had transpired from 31-10-2000 to 23-12-2000, so as to enable Court to take different view from that of Tribunal, it was to be concluded that impugned order passed by Tribunal was correct and deserved to be upheld - Held, yes CASE REVIEW CIT v. Sarb Consulate Marine Products P. Ltd.[2007] 294 ITR 444 (Delhi)followed and relied upon. CASES REFERRED TO CIT v. Sarb Consulate Marine Products (P.) Ltd.[2007] 294 ITR…

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