{"id":211226,"date":"2010-02-16T00:00:00","date_gmt":"2010-02-15T18:30:00","guid":{"rendered":"https:\/\/www.legalindia.com\/judgments\/the-commissioner-of-income-tax-vs-jyoti-limboo-on-16-february-2010"},"modified":"2015-05-16T23:26:50","modified_gmt":"2015-05-16T17:56:50","slug":"the-commissioner-of-income-tax-vs-jyoti-limboo-on-16-february-2010","status":"publish","type":"post","link":"https:\/\/www.legalindia.com\/judgments\/the-commissioner-of-income-tax-vs-jyoti-limboo-on-16-february-2010","title":{"rendered":"The Commissioner Of Income Tax vs Jyoti Limboo on 16 February, 2010"},"content":{"rendered":"<div class=\"docsource_main\">Delhi High Court<\/div>\n<div class=\"doc_title\">The Commissioner Of Income Tax vs Jyoti Limboo on 16 February, 2010<\/div>\n<div class=\"doc_author\">Author: Siddharth Mridul<\/div>\n<pre>*      IN THE HIGH COURT OF DELHI AT NEW DELHI\n\n%                              Judgment delivered on:16th February, 2010\n\n+      ITA No.200\/2010\n\nTHE COMMISSIONER OF INCOME TAX                         .....   Appellant\n\n                                        - versus -\n\nJYOTI LIMBOO\nPROP. M\/S JYOTI &amp; CO.\n118, SUBBA FARMS\nMEHRAULI-GURGAON ROAD\nNEW DELHI                                              .....   Respondent<\/pre>\n<p>WITH<\/p>\n<p>ITA No.727\/2009<\/p>\n<p>THE COMMISSIONER OF INCOME TAX                         &#8230;..   Appellant<\/p>\n<p>                                        &#8211; versus &#8211;\n<\/p>\n<p>JYOTI LIMBOO<br \/>\nPROP. M\/S JYOTI &amp; CO.<\/p>\n<pre>\n118, SUBBA FARMS\nMEHRAULI-GURGAON ROAD\nNEW DELHI                                              .....   Respondent\n\nWITH\n\nITA No.691\/2009\n\nTHE COMMISSIONER OF INCOME TAX                         .....   Appellant\n\n                                        - versus -\n\nJYOTI LIMBOO\nPROP. M\/S JYOTI &amp; CO.\n118, SUBBA FARMS\nMEHRAULI-GURGAON ROAD\nNEW DELHI                                              .....   Respondent\n\n<span class=\"hidden_text\">ITA Nos.200\/2010, 727\/2009 &amp; 691\/2009                                Page 1 of 4<\/span>\n Advocates who appeared in this case:\n\nFor the Appellant              :        Mr Sanjeev Sabharwal\nFor the Respondent             :        Mr Manish Sharma\n\nCORAM:\n<\/pre>\n<p>HON&#8217;BLE MR JUSTICE BADAR DURREZ AHMED<br \/>\nHON&#8217;BLE MR JUSTICE SIDDHARTH MRIDUL<\/p>\n<p>     1.        Whether reporters of local papers may be allowed<br \/>\n               to see the judgment?\n<\/p>\n<p>     2.        To be referred to the Reporter or not?\n<\/p>\n<p>     3.        Whether the judgment should be reported in the<br \/>\n               Digest?\n<\/p>\n<p>SIDDHARTH MRIDUL, J<\/p>\n<p>1.     ITA No.691\/2009 and 727\/2009 arise out of the common order<\/p>\n<p>passed by the Income Tax Appellate Tribunal on 21 st November, 2008<\/p>\n<p>pertaining to the block assessment period 1st April, 1989 to 23rd June,<\/p>\n<p>1999 and in respect of two appeals, one by the assessee and one by the<\/p>\n<p>Revenue        in      I.T.(SS)         A.No.151(DEL)\/2006     and   I.T.(SS)<\/p>\n<p>A.No.158(DEL)\/2006 respectively filed before the said Tribunal.<\/p>\n<p>2.     ITA No.200\/2010 is an appeal by the Revenue and arises out of the<\/p>\n<p>order passed by the Income Tax Appellate Tribunal on 10th June, 2009<\/p>\n<p>pertaining to the block assessment period 1st April, 1989 to 23rd June,<\/p>\n<p>1999 and in respect of an appeal filed by the Revenue being I.T.(SS) A<\/p>\n<p>No.23\/Del\/2008 before the said Tribunal. The impugned order in ITA<\/p>\n<p>No.200\/2010 was passed in pursuance to order dated 21st November,<\/p>\n<p>2008 of the Tribunal whereby the block assessment had been held to be<\/p>\n<p>bad in law and resultantly quashed.\n<\/p>\n<p><span class=\"hidden_text\">ITA Nos.200\/2010, 727\/2009 &amp; 691\/2009                                Page 2 of 4<\/span>\n<\/p>\n<p> 3.     In the assessee&#8217;s appeal before the Tribunal one of the points taken<\/p>\n<p>was that the warrant of authorization had been issued by the Additional<\/p>\n<p>Director of Income Tax (Investigation), who was not authorized to issue a<\/p>\n<p>search warrant and, therefore, the assessment made in consequence of<\/p>\n<p>such an invalid search warrant, was itself invalid and was liable to be<\/p>\n<p>quashed.\n<\/p>\n<\/p>\n<p>4.     The Tribunal, following the decision of this Court in <a href=\"\/doc\/780235\/\">Dr. Nalini<\/p>\n<p>Mahajan &amp; Others vs. Director of Income Tax (Investigation) &amp;<\/p>\n<p>Others<\/a>: 257 ITR 123 accepted the plea taken by the assessee and held<\/p>\n<p>that the Additional Director of Income Tax (Investigation) was not<\/p>\n<p>authorized to issue search warrants and consequently the search warrant<\/p>\n<p>became invalid as did the assessment which followed thereafter. In view<\/p>\n<p>of the fact that the entire proceedings were held to be invalid, the other<\/p>\n<p>grounds taken by the assessee in his appeal were not gone into by the<\/p>\n<p>Tribunal.     Similarly, the Revenue&#8217;s appeals were also not examined<\/p>\n<p>because the assessment itself was quashed on the first ground before the<\/p>\n<p>Tribunal.\n<\/p>\n<\/p>\n<p>5.     The learned counsel for the Revenue now points out before this<\/p>\n<p>Court that by virtue of The Finance (No.2) Act, 2009, an amendment has<\/p>\n<p>been introduced in Section 132(1) with retrospective effect from 1 st June,<\/p>\n<p>1994, whereby the Additional Director has also been empowered to issue<\/p>\n<p>warrants of authorization. In view of this amendment, the impugned<\/p>\n<p><span class=\"hidden_text\">ITA Nos.200\/2010, 727\/2009 &amp; 691\/2009                             Page 3 of 4<\/span><br \/>\n order is liable to be set aside and the matter is to be remitted to the<\/p>\n<p>Tribunal to consider the appeals filed by the assessee as well as by the<\/p>\n<p>Revenue on all the other grounds urged by the parties.<\/p>\n<p>6.     Consequently, we set aside the impugned orders and remit the<\/p>\n<p>matters back to the Tribunal with the direction that the Revenue&#8217;s appeals<\/p>\n<p>before the Tribunal get revived and so does the assessee&#8217;s appeal before<\/p>\n<p>the Tribunal on all points originally urged before the Tribunal.<\/p>\n<p>7.     As requested by the learned counsel for the respondent\/assessee,<\/p>\n<p>this order passed by us today is without prejudice to the assessee&#8217;s right<\/p>\n<p>to challenge the constitutional validity of the amendment introduced by<\/p>\n<p>The Finance (No.2) Act, 2009 whereby the amendments were introduced<\/p>\n<p>in Section 132(1) empowering the Additional Director of Income Tax to<\/p>\n<p>issue a warrant of authorization with retrospective effect.<\/p>\n<p>8.     On these terms, the appeals stand disposed of.<\/p>\n<p>                                               SIDDHARTH MRIDUL, J<\/p>\n<p>                                          BADAR DURREZ AHMED, J<\/p>\n<p>FEBRUARY 16, 2010<br \/>\ndn<\/p>\n<p><span class=\"hidden_text\">ITA Nos.200\/2010, 727\/2009 &amp; 691\/2009                              Page 4 of 4<\/span>\n <\/p>\n","protected":false},"excerpt":{"rendered":"<p>Delhi High Court The Commissioner Of Income Tax vs Jyoti Limboo on 16 February, 2010 Author: Siddharth Mridul * IN THE HIGH COURT OF DELHI AT NEW DELHI % Judgment delivered on:16th February, 2010 + ITA No.200\/2010 THE COMMISSIONER OF INCOME TAX &#8230;.. Appellant &#8211; versus &#8211; JYOTI LIMBOO PROP. M\/S JYOTI &amp; CO. 118, [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_lmt_disableupdate":"","_lmt_disable":"","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[14,8],"tags":[],"class_list":["post-211226","post","type-post","status-publish","format-standard","hentry","category-delhi-high-court","category-high-court"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.3 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>The Commissioner Of Income Tax vs Jyoti Limboo on 16 February, 2010 - Free Judgements of Supreme Court &amp; High Court | Legal India<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.legalindia.com\/judgments\/the-commissioner-of-income-tax-vs-jyoti-limboo-on-16-february-2010\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"The Commissioner Of Income Tax vs Jyoti Limboo on 16 February, 2010 - Free Judgements of Supreme Court &amp; 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