K.S. Jhaveri, J.

1. This Tax Appeal u/s. 260A of the Income-tax Act, 1961 is filed against the order dated 28.04.2006 passed by the Income Tax Appellate Tribunal, Ahmedabad in IT (SS) A No. 03/Ahd/1998 raising the following substantial question of law for our consideration:

"Whether the Income Tax Appellate Tribunal was right in law and on facts in holding that the assessment for the block period was barred by limitation on the ground that initial notice, wrongly issued under Section 158BC of the Income Tax Act, 1961 was a valid notice?"

2. The assessee is a firm dealing in real estate and construction activities. During the course of a search u/s. 132 of the Act in the case of M/s. Gokul Corporation, the assessment was to be completed in assessee's case u/s. 158BC r/w. 158BC of the Act. The Assessing Officer, initially, issued a Notice u/s. 158BC of the Act to the assessee on 17.10.1996 instead of Notice u/s. 158BD of the Act. Subsequently, the A.O. issued a fresh Notice u/s. 158BD on 29.08.1997 in super session of the Notice issued earlier u/s. 158BC of the Act. In response to the Notice, the assessee filed return of income dated 29.09.1997 declaring "Nil" income. The A.O