D. M. DHARMADHIKARI, J.

( 1 ) ). After hearing the learned counsel, Rule is issued. Learned counsel for the Department waives service of Rule. Learned counsel for both the parties are finally heard.

( 2 ) ). The petitioner, by way of this petition under Article 226 of the Constitution of India challenges the notice dated 29-8-2000 issued by the Joint Commissioner of Income Tax Rajkot (respondent) under the provisions of Section 158-BC r. w. Section 158-BD of the Income Tax Act, 1961. (`the Act for short ).

( 3 ) ). According to the petitioner it has been regularly assessed for income tax under the Act. It is engaged in the business of ship breaking at Alang, District : Bhavnagar. According to the petitioner in the course of business it sells materials to several parties and receive the price of the same some times in cash and at times in cheques. In some cases, cheques are drawn by the debtors from their own bank accounts and at times the cheques are obtained from other concerned persons with whom the purchasers may have transactions. The purchase price so realised, however, is duly credited to the profit and loss account of the petitioner. As is stated, on affidavit-in-reply, by the respondent, Joint Commissioner of Income Tax, certain seizure operations were carried out against M/s. Mahendra H. Shah and Hemant C. Shah of Bhavnagar in exercise of powers under Section 132 of the Act. The petitioners case is that during the course of search proceedings against the above two named persons with whom the petitioner has no direct concern, no books of accounts or documents or any assets belonging to the petitioners were discovered, so as to come to the conclusion against the petitioner that it had any undisclosed income, for resorting to his assessment for the block period in accordance with the provisions contained in Chapter XIV-B of the Act. The petitioner, therefore, has assailed and seeks quashing of the proceedings initiated by the respondent, Joint Commissioner of Income Tax, by notice dated 29-8-2000 at Annexure A, directing the petitioner in accordance with the provisions of Section 158-BC (a) (ii) of the Act to furnish the return for assessing him to income tax for the block period.

( 4 ) ). Section 158-BD on the basis of which the impugned notice for submitting return by the petitioner has been issued in accordance with Section 158-BC (a) (ii) in relevant parts reads as under:-"158-BD. UNDISCLOSED income of any other person. Where the Assessing Officer is satisfied that any undisclosed income belongs to any person, other than the person with respect to whom search was made under Section 132 or whose books of account or other documents or any assets were requisitioned under Section 132-A, then, the books of account, other documents or assets seized or requisitioned shall be handed over to the Assessing Officer having jurisdiction over such other person and that Assessing Officer shall proceed against such other person and the provisions of this Chapter shall apply accordingly. "section 158-BC contains the procedure for block assessment and reads:-"158-BC. Procedure for block assessment.- Where any search has been conducted under Section 132 or books of account, other documents or assets are requisitioned under Section 132-A, in the case of any person, then, - (a) the Assessing Officer shall - (i) xx xx (ii)in respect of search initiated or books of account or other documents or any assets requisitioned on or after the 1st day of January, 1997 serve a notice to such person requiring him to furnish within such time not being less than fifteen days but not more than forty-five days, as may be specified in the notice a return in the prescribed form and verified in the same manner as a return under clause (i) of sub-section (1) of Section 142, setting forth his total income including the undisclosed income for the block period: provided xx xx xx provided xx xx xx"

( 5 ) ). The two expressions "block period" and "undisclosed incom

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