Capital Power Systems Ltd. v. Assistant Commissioner of Income Tax

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The Tax PublishersIT(SS) Appeal No. 58 (DELHI) of 2005 2008 TaxPub(DT) 1395 (Del-Trib) : (2008) 115 TTJ 0531 : (2008) 005 DTR 0433 Capital Power Systems Ltd. v. Assistant Commissioner of Income Tax INCOME TAX ACT, 1961 Search and seizure - Search under section 132 -Block assessment -Competent authority *Held:* Search and seizure operation conducted upon assessee was invalid because Joint Director of IT, who was not competent to issue authorization, issued authorization power for it. Notification F.No. 286/343/89-IT (INB-II) did not mention designation of Joint Director of IT (Inv.) as an authority specified for issue of authorization under section 132(1), therefore, it could be concluded that authorization was not issued by a competent authority and, hence, search carried out was not valid in law and there was no block assessment under section 158BC could have been framed in pursuance of aforesaid invalid operation. Income-tax Act, 1961, Section 132, read with section 158BC A.Y. : Block Period April 1, 1989 to December17, 1999 Decision: In favour of assessee Case Law Analysis:Dr. Nalini Mahajan v. Director of Income-tax [2002] 257 ITR 123/ 122 Taxman 897 (Delhi). Capital Power Systems Ltd. v. Assistant Commissioner of Income Tax SUBSCRIBE FOR FULL CONTENT

The Tax PublishersIT(SS) Appeal No. 58 (DELHI) of 2005
2008 TaxPub(DT) 1395 (Del-Trib) : (2008) 115 TTJ 0531 : (2008) 005 DTR 0433

Capital Power Systems Ltd. v. Assistant Commissioner of Income Tax

INCOME TAX ACT, 1961

Search and seizure - Search under section 132 -Block assessment -Competent authority

Held: Search and seizure operation conducted upon assessee was invalid because Joint Director of IT, who was not competent to issue authorization, issued authorization power for it. Notification F.No. 286/343/89-IT (INB-II) did not mention designation of Joint Director of IT (Inv.) as an authority specified for issue of authorization under section 132(1), therefore, it could be concluded that authorization was not issued by a competent authority and, hence, search carried out was not valid in law and there was no block assessment under section 158BC could have been framed in pursuance of aforesaid invalid operation.

Income-tax Act, 1961, Section 132, read with section 158BC

A.Y. : Block Period April 1, 1989 to December17, 1999
Decision: In favour of assessee

Case Law Analysis:Dr. Nalini Mahajan v. Director of Income-tax [2002] 257 ITR 123/ 122 Taxman 897 (Delhi).

Capital Power Systems Ltd. v. Assistant Commissioner of Income Tax