Search and seizure: Block assessment: Block period: S/s. 132A and 158B(a): Period up to which “requisition was made”: Meaning of: Date on which the authorisation u/s. 132A was issued is to be taken and not the dated of execution of the authorisation: Warrant of authorisation u/s. 132A issued on 18-09-2001: Warrant executed and books of account and other documents received on 21-03-2003: The block period will be from 01-04-1995 to 18-09-2001 and not from 01- 04-1996 to 21/03/2003 as taken by the<

The assessee derived income from purchase and sale of properties and from trading of transistor parts. He also worked as an informer for the Directorate of Revenue Intelligence. On 15-06-2001, the CBI conducted a search at the premises of the assessee and seized cash amounting to Rs. 1,12,50,000/-. The Director of Incometax (Investigation) issued a warrant of authorisation u/s. 132A of the Income-tax Act, 1961 on 18-09-2001. The Income Tax Authorities executed the warrant and received the books of account and other documents on 21-03- 2003. The Assessing Officer passed block assessment order u/s. 158BC for the block period from 01-04-1996 to 21-03-2003.

When the dispute reached the High Court in appeal the Delhi High Court held as under:

“i) “Block period” has been defined to mean the period comprising previous years relevant to the six assessment years preceeding the previous year in which search u/s. 132 of the Income-tax Act, 1961, is conducted or requisition u/s. 132A is made. It also includes the part of the previous year till the date when the search u/s. 132 is conducted or such requisition u/s. 132A is made.

ii) Making a requisition would not be the same as receiving the articles that are requisitioned. The expression “a requisition was made” cannot be equated to receiving the articles that were requisitioned. There was no reason to read the expression “requisition was made” not to mean the date on which the authorised officer made the requisition, but to mean the date when he received the records and assets pursuant thereto.

iii) The block period adopted by the Assessing Officer was not in accordance with the provisions of the Act, the assessment made by the Assessing Officer would also be required to be reviewed. Thus, the matter was remanded to the Assessing Officer to assess the income for the block period 01-04-1995 to 18-09-2001.”