Reopening of Block Assessment

[PANKAJ JAIN]

Dear All,

If inocme has escaped assessmet for any assessment year it can be reopened under section 147. However, can a Block Assessment Order passed under section 158BC be reopened under section 147, as the order is not for any assessment year, also the condition of time limit cannot be applied in the case of block assessment. Is their any judicial pronouncement on the matter.

Best Regards,

[taxationlaws]

Dear Pankaj,

In relation to your query regarding reopening of block assessment, you may please refer to
Mum ITAT ruling in the case of Western India Bakers reported at 87 ITD 607/84 TTJ 223, as argued from assessee's side by learned senior counsel Mr. Soli Dastur, wherein it has been interalia held that

".....23. The policy of law is that there must be a point of finality inall legal proceedings. State issues should not be re-activated beyonda particular stage. Lapse of time must induce repose in and set atrest judicial controversies. The effect of re-opening an assessmentis to vacate or set aside the original order of assessment and tosubstitute in its place the order made on reassessment. There is noindication in Chapter XIV-B that assessments completed under thisChapter could be reopened. When Legislature prescribes a particularprocedure, it is incumbent on the Assessing Officer to follow thatprocedure only. He cannot travel beyond that. It is abundantly clearfrom the perusal of Chapter XIV-B and the scheme of reassessment thatsection 147 of the Act cannot be applied in the context of blockassessment. We, therefore, decide this issue in favour of theassessee and against the revenue....."

Regards
Kapil Goel, Delhi
taxationlaws@rediffmail.com

[PANKAJ JAIN]

Dear Mr.Goel,
Thanks a lot............ :)