ASSISTANT COMMISSIONER OF INCOME TAX AND ANR.versusM/S. HOTEL BLUE MOON

                      [201 OJ 2 S.C.R. 282


A     ASSISTANT COMMISSIONER OF INCOME TAX AND
                            ANR.
                              v.
                 M/S. HOTEL BLUE MOON
              (Civil Appeal No. 1198 of 2010 )
B
                      FEBRUARY 2, 2010
             [S.H. KAPADIA AND H.L. DATTU, JJ.]

      Income Tax Act, 1961: s.143(2) - Issuance of notice on
C assessee under s. 143(2) for block assessment proceedings
  - Requirement of - Held: Is mandatory.

      The question which arose for consideration in these
  appeals was whether service of notice on the assessee
0 under Section 143(2) of the Income Tax Act, 1961 within
  the prescribed period of time for framing the block
  assessment under Chapter XIV-B is mandatory for
  assessing the undisclosed income detected during
  search conducted under Section 132 of the Act.

E      Dismissing the appeals, the Court

       HELD: 1.1. Chapter XIV-B of the Income Tax Act,
  19'61 provides for an assessment of the undisclosed
  income unearthed as a result of search without affecting
F the regular assessment made or to be made. Search is
  the sine qua non for the Block assessment. The special
  provisions are devised to operate in the distinct field of
  undisclosed income and are clearly in addition to the
  regular assessments covering the previous years falling
G in the block period. The special procedure of Chapter
  XIV-B is not intended to be substitute for regular
  assessment. It is in addition to the regular assessment
  already done or to be done. The assessment for the
  block period can only be done on the basis of evidence
H                            282
 ASSISTANT COMMISSIONER OF INCOME TAX AND 283
        ANR. v. MIS. HOTEL BLUE MOON
found as a result of search or requisition of books of        A
accounts or documents and such other materials or
information as are available with the assessing officer.
Therefore, the income assessable in Block assessment
under Chapter XIV-B is the income not disclosed but
found and determined as the result of search under             B
Section 132 or requisition under Section 132A of the Act.
[Para 12] (292-B-E]

      1.2. Section 158 BC stipulates that the Chapter XIV-
 B would have application where search has been
 effected under Section 132 or on requisition of books of C
 accounts, other documents or assets under Section
  132A. By making the notice issued under this Section
 mandatory, it makes such notice the very foundation for
 jurisdiction. Such notice under the Section is required to
  be served on the person who is found to be having D
 undisclosed income. The Section itself prescribes the
 time limit of 15 d·ays for compliance. In respect of
 searches on or after 1.1.1997, the time limit may be given
 up to 45 days instead of 15 days for compliance. Such
 notice is prescribed under Rule 12(1A). Section 158 BC(b) E
 is a procedural provision for making a regular
 assessment applicable to Block assessment as well.
·Section 158 BC(b) provides for enquiry and assessment.
 The said provision reads "that the assessing officer shall
 proceed to determine the undisclosed income of the F
 Block period in the manner laid down in Section 158 BB
 and the provisions of Section 142, sub-section (2) and (3)
 of Section 143, Section 144 and Section 145 shall, so far
 as may be, apply." An analysis of· this sub section
 indicates that, after the return is filed, this clause enables G
 the assessing officer to complete the assessment by
 following the procedure like issue of notice under
 Sections 143(2)/142 and complete the assessment under
 Section 143(3). This Section does not provide for
 accepting the return as provided under Section 143(i)(a). H
    284    SUPREME COURT REPORTS             [2010] 2 S.C.R.


A The assessing officer has to complete the assessment
   under Section 143(3) only. In case of default in not filing
   the return or not complying with the notice under
   Sections 143(2)/142, the assessing officer is authorized
   to complete the assessment ex-parte under Section 144.
B Clause (b) of Section 158 BC by referring to Section
   143(2) and (3) would appear to imply that the provisions
   of Section 143(1) are excluded. But Section 143(2) itself
   becomes necessary only where it becomes necessary to
   check the return, so that where block return conforms to
c the undisclosed income inferred by the authorities, there
   is no reason, why the authorities should issue notice
   under Section 143(2). However, if an assessment is to be
  completed under Section 143(3) read with Section 158-
  BC, notice under Section 143(2) should be issued within
0 one year from the date of filing of block return. Omission
  on the part of the assessing authority to issue notice
  under Section 143(2) cannot be a procedural irregularity
  and the same is not curable and, therefore, the
  requirement of notice under Section 143(2) cannot be
E dispensed with. The other important feature is that the
  Section 158 BC(b) specifically refers to some of the ·
  provisions of the Act which requires to be followed by
  the assessing officer while completing the block
  assessments under Chapter XIV-B of the Act. This
  legislation is by incorporation. This Section even speaks
F of sub-sections which are to be followed by the
  assessing officer. Had the intention of the legislature was
  to exclude the provisions of Chapter XIV of the Act, the
  legislature would have or could have indicated that also.
  A reading of the provision would clearly indicate if the
G assessing officer, if for any reason, repudiates the return
  filed by the assessee in response to notice under Section
  158 BC(a), the assessing officer must necessarily issue
  notice under Section 143(2) of the Act within the time
  prescribed in the proviso to Section 143(2) of the Act.
H Where the legislature intended to exclude certain
ASSISTANT COMMISSIONER OF INCOME TAX AND 285
       ANR. v. MIS. HOTEL BLUE MOON
provisions from the ambit of Section 158 BC(b) it has A
done so specifically. Thus, when Section 158 BC(b)
specifically refers to applicability of the proviso thereto
cannot be exclude. The CBDT in its circular No.717 dated
14th August, 1995, has a binding effect on the
department, but not on the Court clarified the s
requirement of law in respect of service of notice under
sub-section (2) of Section 143 of the Act. Accordingly,
even for the purpose of Chapter XIV-8 of the Act, for the
determination of undisclosed income for a block period
under the provisions of Section 158 BC, the provisions c
of Section 142 and sub-sections (2) and (3) of Section 143
are applicable and no assessment could be made without
issuing notice under Section 143(2) of the Act. Where the
assessing officer in repudiation of the return filed under
Section 158 BC(a) proceeds to make an enquiry, he has
                                                             0
necessarily to follow the provisions of Section 142, sub-
sections (2) and (3) ·of Section 143. [Paras 12 to 16] [292·
F-H; 293-A-H; 294-A-H; 295-A·F]
    Dr. Pratap Singh v. Director of Enforcement 1985 155 ITR
166 (SC); Magan/al v. Jaiswa/ Industries, Neemach and Ors, E
(1989) 4 sec 344, referred to.

     Circular No. 717 dated 14th August, 1995, (1995) 215 ITR
70, referred to.

     1.3. Section 158 BH provides for application of the F
other provisions of the Act. It reads : "Save as otherwise
provided in this Chapter, all the other provisions of this
Act shall apply to assessment made under this Chapter."
This is an enabling provision, which makes all the
provisions of the Act, save as otherwise provided, G
applicable for proceedings for block assessment. The
provisions which are specifically included are those
which are available in Chapter XIV-8 of the Act, which
includes Section 142 and sub-sections (2) and (3) of
Section 143. [Paras 17] [292-G-H; 296-A]                   H
    286      SUPREME COURT REPORTS                 [2010] 2 S.C.R.


A                         Case Law Reference:
          1985 155 ITR 166 (SC) referred to              Paras 5,
                                                         15
          (1989) 4 sec 344         referred to           Para 15
B
        CIVIL APPELLATE JURISDICTION : Civil Appeal No.
    1198 of 2010.

        From the Judgment & Order dated 9.2.2007 of the High
    Court of Guwahait at Guwahati in Income Tax Appeal No. 41 of
c   2004.

                                 WITH

    C.A. Nos. 1199, 1200, 1201, 1202, 1203 of 2010.

D        V. Shekhar, Arijit Prasad, Kunal Bahri, B.V. Balaram Das,
    Hrishikesh Baruah, Balvir Singh Dosanjh, Jagjit Singh Chhabra,
    Dr. Rakesh Gupta, Amboj Kumar Sinha and Aarti Sain for the
    appearing parties.

E         The Judgment of the Court was delivered by

          H.L. DATTU,J. 1. Leave granted in all the special leave
    petitions.

       2. These six appeals have been heard together. They arise
F out of similar facts and the question of law arising therefrom is
  the same.

       3. The facts in the lead case are : This is an appeal against
  the judgment of the High Court of Guwahati in a appeal under
  Section 260A of the Income Tax Act, 1961, hereinafter referred
G to as 'the Act', and the point that is raised for our determination
  is, whether issue of notice under Section 143(2) of the Act within
  the prescribed time for the purpose of block asses_!?ment under
  Chapter XIV-B of the Act is mandatory for assessing
  undisclosed income detected during search conducted under
H
ASSISTANT COMMISSIONER OF INCOME TAX AND 287
 ANR. v. MIS. HOTEL BLUE MOON [H.L. DATTU, J.]
Section 132 of the Act. While, according to the department,           A
issue of a notice under Section 143(2) is not essential
requirement in block assessment under Chapter XIV-B of the
Act. According to the assessee, service of notice on the
assessee under Section 143(2) of the Act within the prescribed
period of time is a pre-requisite for framing the block               B
assessment under Chapter XIV-B of the Act. The Appellate
Tribunal held, while affirming the decision of the CIT(A) that non-
issue of notice under Section 143(2) is only a procedural
irregularity and the same is curable. In the appeal filed by the
assessee before the Guwahati High Court, the following two            c
questions of law were raised for consideration and decision of
the High Court, they were : -

     "( 1) Whether on the facts and in circumstances of the case
     the issuance of notice u/s 143(3) of the Income Tax Act,
     1961 with!n the prescribed time limit for the purpose of         D
     making the assessment under Section 143(3) of the
     Income Tax Act, 1961 is mandatory? And

     (2) Whether, on the facts and in the circumstances of the
     case and in view of the undisputed findings arrived at by        E
     the Commissioner of Income Tax (Appeals), the additions
     made u/s 68 of the Income Tax Act, 1961 should be deleted
     or set aside."

     4. The High C~urt, disagreeing with the Tribunal, held, that
the provisions of Section 142 and sub-sections (2) and (3) of         F
Section 143 will have mandatory application in a case where
the assessing officer in repudiation of return filed in response
to a n9tice issued under Section 158 BC(a) proceeds to make
an inquiry. Accordingly, the High Court answered the question
of law framed in affirmative and in favour of the appellant and       G
against the revenue. The revenue thereafter applied to this
Court, for special leave under Article 136, and the same was
granted, and hence this appeal.

    5. The learned counsel Sri Shekhar for the revenue                H
   288      SUPREME COURT REPORTS                  [2010] 2 S.C.R.


A submitted, that, Chapter XIV B of the Act provides a special
  procedure for search cases and is a complete code in itself
  dealing with both the substantive as well as procedural aspects
  of search cases and, therefore, there is a distinction between
  the procedure for regular assessment under Chapter XIV and
B the procedure of Block assessment under Chapter XIV B.
  Therefore, it is submitted for the purpose of block assessments
  the assessing authority need not follow the procedure prescribed
  under Chapter XIV which includes issuance of notice under
  Section 143(2). The learned counsel has further contended that
C in a proceeding under Section 158 BC, there is no requirement
  of a notice to be issued under Section 143(2), since issuance
  of notice for the purpose of Section 158 BC is separately
  prescribed. It is further submitted that Block assessment is in
  addition to regular assessment, and what is included in regular
  assessment, cannot be assessed again in the course of a Block
0
  assessment and similarly, what is assessed in Block
  assessment, cannot be the subject matter of regular
  assessment. It is further submitted that Section 143(2) of the
  Act is in two parts. The first part deals with jurisdiction and the
  second with the procedure. The proviso to Section 143(2) puts
E an embargo on the assessing officer to exercise jurisdiction
  after the expiry of 12 months from the end of the month in which
  the return was filed by the assessee. It is the discretion of the
  assessing officer to accept the return as it is or to proceed
  further with the assessment of income, once the assessing
F officer ·decides to proceed, he has to issue notice under
  Section 143(2) within the prescribed time limit to make the
  assessee aware that his return has been selected for scrutiny
  assessment. In distinction to this procedure, under the special
  procedure prescribed in Chapter XIV B, there is no discretion
G left with the assessing officer. It is further contended that the
  sou(ce and origin of a Block assessment is the search which
  has been conducted under Section 132 of the Act. Once the
  search has been carried out, the assessing officer is left with
  no discretion but to proceed with the Block assessment. It is
H also submitted that in search cases the material is already
 ASSISTANT COMMISSIONER OF INCOME TAX AND 289
  ANR. v. MIS. HOTEL BLUE MOON [H.L. DATTU, J.]
found and is in the knowledge of the assessing officer. This is      A
distinct and different from the situation of an ordinary
assessment, where, the assessing officer does not have any
material other than the return filed by the assessee. Therefore,
the requirement of notice under Section 143(2) is essential for
production of material by the assessee. This is so because in        B
 regular assessments the assessing officer in the first instance
has no material available to him except the return filed by the
 assessee. It is further submitted that the computation of
 undisclosed income of the Block period has to be done in
accordance with the provisions of Section 158 BB and on the          c
basis of evidence found as a result of search or requisition of
books of account, or other documents and such other materials
or information as are available with the assessing officer and
relatable to such evidence and, therefore, issuance of notice
under Section 143(2) is not required for Block assessment
                                                                     0
proceedings. It is further submitted that the provisions of
Section 143(2) and other provisions mentioned in Section 158
BC(b) are to be applied only to the extent possible, since the
provisions incorporated in the Chapter XIV B constitute a
special Code to assess the undisclosed income in search
cases, they would override the provisions of Chapter XIV being       E
the procedure for normal assessments. In support of this
contention, reference is made to the decision of this Court in
the case of Dr. Pratap Singh vs. Director of Enforcement,
[1985] 155 ILR 166 (SC). Lastly, it is submitted, that, since both
the schemes under Chapter XIV for a regular assessment and           F
under Chapter XIV B for Block assessments are different that
while no assessment under Section 143(3) could be completed
without the issuance of notice under Sectio~ 143(2), the same
restriction would not be applicable in the case of Block
assessment.                                                          G

      6. Per contra, the contention on behalf of the assessee(s)
is that, for the purpose of Block assessment under Section 158
BC, the provisions of Section 142 and Sub-sections (2) and
(3) of Section 143 are applicable and, the~efore, no Block           H
             )•                                 '
    290      SUPREME COURT REPORTS                   [2010) 2 S.C.R.


A assessments could be made without issuing notice under
  Section 143(2) of the Act. It is further contended that notice
  under Section 143(2) could have been dispensed with by the
  assessing officer if he proceeds to determine the income on
  the basis of the return without going for scrutiny. Referring to
B the provisions in clause (v) of the Second Proviso to Section
   158 BC, it is submitted by the learned counsel that the words
  "so far as may be" does not give any discretion to the
  assessing officer to dispense with the requirement of such a
  notice under Section 143(2), when he proceeds to make an
c enquiry within the scope and ambit of Section 143(2). It is further
  contended that after a notice under Section 158 BC is issued,
  the assessee is required to file a return within a stipulated
  period. Once the return is filed, it is open to the assessing
  officer to accept the same or to require further investigation. If
  he accepts the return of undisclosed income as it is, then, there
0
  would be no necessity of issuing any notice under Section
  143(2) of the Act. However, if the assessing officer is not
  satisfied with the return so filed, then he is required to issue
  further notice under Section 143(2) before an assessment
E order is passed under Chapter XIV-B of the Act.

         7. The only question that arises for our consideration in this
    batch of appeals is, whether service of notice on the assessee
    under Section 143(2) within the prescribed period of time is a
    pre-requisite for framing the block assessment under Chapter
F   XIV-B of the Income Tax Act, 1961?

        8. Chapter XVl-B prescribes the special procedure for
    making the assessment of search cases.

       9. Section 158 B defines "undisclosed income", and "block
G period" which are the two basic factors for framing the block
  assessments.

         10. Section 158 BA is an enabling section, empowering
    the assessing officer, to assess "undisclosed income" as a
H   result of search initiated or requisition made after June 30,
ASSISTANT COMMISSIONER OF INCOME TAX AND 291
 ANR. v. MIS. HOTEL BLUE MOON [H.L. DATTU, J.]
1995, .in accordance with the provisions of this Chapter and tax A
the same at the fixed rate specified in Section 113. Section
158 BB provides the methodology for computation of
undisclosed income of the block period. Section 158 BC
prescribes the procedure for making the Block assessment of
the searched person. Section 158 BD enables assessment of B
any person, other than the searched person. Section 158 BE
sets the time limits for completion of the Block assessments.
Section 158 BF provides for immunity from levy of interest
under Sections 234A, 234B and 234C and penalties under
Section 271(1)(C), 271A and 271B. Section 158 BFA provides c
for levy of interest and penalty in cases of search on or after
January 1, 1997. Section 158 BG specifies the authorities
competent to make the block assessment., Section 158 BH
provides for application of all the other provisions of this Act,
except those as provided in Chapter XIV-B. Section 158 Bl
                                                                  0
provides for abolition of the scheme in cases of search after
31.5.2003.

     11. The scheme of Block assessment has been explained
by Central Board of Direct Taxes in paragraph 39.3 of Circular
No.717 dated 14th August, 1995 ([1995] 215 ITR.70). We may        E
only notice clause (e) of the circular which provides for the
procedure for making Block assessment. Omitting what is not
necessary for the purpose of this case, clause (e) is extracted
and it reads as under:-
                                                                  F
    "(e) Procedure for making block assessment: (i) The
    Assessing Officer shall serve a notice on such person
    requiring him to furnish within such time, not being less
    than 15 days, as may be specified in the notice, a return
    in the prescribed form and verified in the same manner as G
    a return under clause (i) of sub-section(1) of section 142
    setting forth his total income including undisclosed income
    for the block period. The officer shall proceed to determine
    the undisclosed income of the block period and the
    provisions of section 142, sub-sections (2) and (3) of
                                                                 .H
    292      SUPREME COURT REPORTS                [2010] 2 S.C.R.


A         section 143 and section 144 shall apply accordingly."

         12. Chapter XIV-B provides for an assessment of the
   undisclosed income unearthed as a result of search without
   affecting the regular assessment made or to be made. Search
B is the sine qua non for the Block assessment. The special
   provisions are devised to operate in the distinct field of
   undisclosed income and are clearly in addition to the regular
 · assessments covering the previous years falling in the block
   period. The special procedure of Chapter XIV-Bis intended to
C provide a mode of assessment of undisclosed income, which
   has been detected as a result of search. It is not intended to
   be substitute for regular assessment. Its scope and ambit is
   limited in that sense to materials unearthed during search. It is
   in addition to the regular assessment already done or to be
   done. The assessment for the block period can only be done
D on the basis of evidence found as a result of search or
   requisition of books of accounts or documents and such other
   materials or information as are available with the assessing
   officer. Therefore, the income assessable in Block assessment
   under Chapter XIV-B is the income not disclosed but found and
E determined as the result of search under Section 132 or
   requisition under Section 132A of the Act.

       13. Section 158 BC stipulates that the Chapter would have
  application where search has been effected under Section 132
F or on requisition of books of accounts, other documents or
  assets under Section 132A. By making the notice issued under
  this Section mandatory, it makes such notice the very
  foundation for jurisdiction. Such notice under the Section is
  required to be served on the person who is found to be having
G undisclosed income. The Section itself prescribes the time limit
  of 15 days for compliance. In respect of searches on or after
  1.1.1997, the time limit may be given up to 45 days instead of
  15 days for compliance. Such notice is prescribed under Rule
  12(1A) which in turn prescribes Form 2B for block return.

H         14. Section 158 BC(b) is a procedural provision for
 ASSISTANT COMMISSIONER OF INCOME TAX AND 293
  ANR. v. MIS. HOTEL BLUE MOON [H.L. DATTU, J.]
         a
making regular assessment applicable to Block assessment                   A
as well. Section 158 BC(c) would require the assessing officer
to compute the income as well as tax on completion of the
proceedings to be made. Section 158 BC(d) would authorise
the assessing officer to apply the assets seized in the same
manner as are applied under Section 132B.                                  B

       15. We may now revert back to Section 158 BC(b) which
 is the material provision which requires our consideration.
 Section 158 BC(b) provides for enquiry and assessment. The
 said provision reads "that the assessing officer shall proceed            C
 to determine the undisclosed income of the Block period in the
 manner laid down in Section 158 BB and the provisions of
 Section 142, sub-section (2) and (3) of Section 143, Section
 144 and Section 145 shall, so far as may be, apply." An
 analysis of this sub section indicates that, after the return is filed,
 this clause enables the assessing officer to complete the                 D
 assessment by following the procedure like issue of notice
 under Sections 143(2)/142 and complete the assessment under
 Section 143(3). This Section does not provide for accepting
the return as provided under Section 143(i)(a). The assessing
 officer has to complete the assessment under Section 143(3)               E·
only. In case of default in not filing the return or not complying
with the notice under Sections 143(2)/142, the assessing officer
is authorized to complete the assessment ex-parte under
Section 144. Clause (b) of Section 158 BC by referring to
Section 143(2) and (3) would appear to imply that the provisions           F
of Section 143( 1) are excluded. But Section 143(2) itself
becomes necessary only where it becomes necessary to check
the return, so that where block return conforms to the
undisclosed income inferred by the authorities, there is no
reason, why the authorities should issue notice under Section              G
143(2). However, if an assessment is to be completed under
Section 143(3) read with Section 158-BC, notice under Section
143(2) should be issued within one year from the date of filing
of block return. Omission on the part of the assessing authority
to issue notice under Section 143(2) cannot be a procedural                H
    294     SUPREME COURT REPORTS                 [2010] 2 S.C.R.


A irregularity and the same is not curable and, therefore, the
  requirement of notice under Section 143(2) cannot be
  dispensed with. The other important feature that requires to be
  noticed is that the Section 158 BC(b) specifically refers to
  some of the provisions of the Act which requires to be followed
B by the assessing officer while completing the block
  assessments under Chapter XIV-B of the Act. This legislation
  is by incorporation. This Section even speaks of sub-sections
  which. are to be followed by the assessing officer. Had the
  intention of the legislature was to exclude the provisions of
c Chapter XIV of the Act, the legislature would have or could have
  indicated that also. A reading of the provision would clearly
  indicate, in our opinion, if the assessing officer, if for any
  reason, repudiates the return filed by the assessee in response
  to notice under Section 158 BC(a), the assessing officer must
0 necessarily issue notice under Section 143(2) of the Act within
  the time prescribed in the proviso to Section 143(2) of the Act.
  Where the legislature intended to exclude certain provisions
  from the ambit of Section 158 BC(b) it has done so specifically.
  Thus, when Section 158 BC(b) specifically refers to applicability
  of the proviso thereto cannot be exclude. We may also notice
E here itself that the clarification given by CBDT in its circular
  No.717 dated 14th August, 1995, has a binding effect on the
  department, but not on the Court. This circular clarifies the
  requirement of law in respect of service of notice under sub-
  section (2) of Section 143 of the Act. Accordingly, we conclude
F even for the purpose of Chapter XIV-8 of the Act, for the
  determination of undisclosed income for a block period under
  the provisions of Section 158 BC, the provisions of Section 142
  and sub-sections (2) and (3) of Section 143 are applicable and
  no assessment could be made without issuing notice under
G Section 143(2) of the Act. However, it is contended by Sri
  Shekhar, learned counsel for the department that in view of the
  expression "So far as may be" in Section 153 BC(b), the issue
  of notice is not mandatory but optional and are to be applied
  to the extent practicable. In support of that contention, the
H learned counsel has relied on the observation made by this
ASSISTANT COMMISSIONER OF INCOME TAX AND 295
 ANR. v. MIS. HOTEL BLUE MOON [H.L. DATTU, J.]
Court in Dr. Pratap Singh's case [1985] 155 ITR 166(SC). In         A
this case, the Court has observed that Section 37(2) provides
that "the provisions of the Code relating to searches, shall so
far as may be, apply to searches directed under Section 37(2).
Reading the two sections together it merely means that the
methodology prescribed for carrying out the search provided         B
in Section 165 has to be generally followed. The expression
"so far as may be" has always been construed to mean that
those provisions may be generally followed to the extent
possible. The learned counsel for the respondent has brought
to our notice the observations made by this Court in the case       c
of Magan/al vs. Jaiswal Industries, Neemach and Ors., [(1989)
4 SCC 344], wherein this Court while dealing with the scope
and import of the expression "as far as practicable" has stated
"without anything more the expression 'as far as possible' will
mean that the manner provided in the code for attachment or
                                                                    0
sale of property in execution of a decree shall be applicable in
its entirety except such provision therein which may not be
practicable to be applied."

      16. The case of the revenue is that the expression 'so far
as may be apply' indicates that it is not expected to follow the    E
provisions of Section 142, sub-sections 2 and 3 of Section 143
strictly for the purpose of Block assessments. We do not agree
with \~ submissions of the learned counsel for .the revenue,
since we do not see any reason to restrj~t the scope and
meaning of the expression 'so far as may be'apply'. In our view,    F
where the assessing officer in repudiation of the return filed
under Section 158 BC(a) proceeds to make an enquiry, he has
necessariTy to follow the provisions of Section 142, sub-
sections (2) and (3) of Section 143.
                                                                    G
     17. Section 158 BH provides for application of the other
provisions of the Act. It reads : "Save as otherwise provided in
this Chapter, all the other provisions of this Act shall apply to
assessment made under this Chapter." This is an enabling
proyision, which makes all the provisions of the Act, save as       H
    296     SUPREME COURT REPORTS                [2010] 2 S.C.R.


A   otherwise provided, applicable for proceedings for block
    assessment. The provisions which are specifically included are
    those which are available in Chapter XIV-B of the Act, which
    includes Section 142 and sub-sections (2) and (3) of Section
    143.
B
         18. On a consideration of the provisions of Chapter XIV-
    B of the Act, we are in agreement with the reasoning and the
    conclusion reached by the High Court.

        19. The result is that the appeals fail and are dismissed.
C   No order as to costs.

    D.G.                                     Appeals dismissed.