1. Under section 255(3) of the Income-tax Act, 1961 (the Act), the Hon’ble President of Income Tax Appellate Tribunal has constituted this Special Bench consisting of five Members to consider the following question:—

"Whether the Income Tax Appellate Tribunal has powers to adjudicate upon the issue relating to the validity of the search conducted under section 132 while disposing the appeal against block assessment."

2. Since the above question referred to this bench for consideration and decision is purely a question of law which can be decided independent of facts of any particular case, we do not deem it necessary to advert to the facts of the case before us at this stage. However, the background in which this Special Bench has come to be constituted can be outlined here. This case was initially fixed for hearing before a Division Bench of the Tribunal i.e. ‘D’ Bench, New Delhi. During the course of hearing, it was noticed by the Members constituting the Division Bench that the assessee-company has challenged, inter alia, the validity of search conducted under section 132 in its appeal and the question involved for consideration was whether the Income Tax Appellate Tribunal h