Commissioner of Income Tax vs Ms. Rohini S. Walia and Ms. Pushpa Rani

Both these appeals are preferred against a common order made by the Income Tax Appellate Tribunal in I.T. (SS) Appeal No. 83/Delhi of 2002 for block period April 1, 1989 to July 27, 1999, and I.T. (SS) Appeal No. 142/Delhi of 2002 for block period April 1, 1989, to July 27, 1999. In both the cases, the facts were common and hence, the Tribunal disposed of both the appeals by a common judgment and/or order. The Tribunal on the material placed before it, arrived at a conclusion that there were no search warrants in the name of the assesseds and hence it accepted the contention of learned Counsel that the proceedings initiated u/s 158BC in the cases of the assesseds were ab initio void and without jurisdiction. Learned Counsel for the Department was unable to furnish any clarification and stated before the Tribunal that the facts stated by the assesseds regarding non-issuance of the search warrant in the case of the two ladies were correct. It is in view of this that the Tribunal has held that unless a search warrant is issued, the Assessing Officer cannot invoke the provisions of Section 158BC for initiation of block assessment proceedings under Chapter XTV-B. However, so far as the bank locker is concerned, it is submitted that the officer was armed with the search warrant and, Therefore, whatever the property was found, namely, jewellery, money and bonds, etc., the assesseds ought to have been assesseds and the Tribunal ought not to have interfered with the order made by the Commissioner of Income Tax (Appeals).

Interestingly, the Tribunal recorded a finding that no addition whatsoever has been made in either of the two cases on the basis of the assets found in the respective lockers which were being operated by each of the assesseds jointly with their husbands. In these circumstances, it would be a futile exercise if these appeals are entertained.

Hence, the appeals are dismissed.