Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2012 (6) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2012 (6) TMI 517 - ITAT, JODHPURSearch & Seizure - Block assessment - Period of limitation - search conducted at bhatta premises of the assessee vide first authorization dated 17.12.2002 of which panchnamas was drawn on 20.12.02, 21.12.02(order u/s 132(3)), and 03.01.03 and search conducted at office premises vide last authorisation dated 20.12.2002 of which panchnama was drawn on 27.12.2002 - assessee contended that search was concluded on 21.12.2002 itself and panchnama dated 3.1.2003 was merely for revocation of order u/s 132(3) - Held that:- In the present case panchnama dated 3.1.2003 is not a panchnama which finds mentioned in Explanation 2 to section 158BE. Hence, the limitation cannot be governed by the said panchnama. The search essentially was concluded and completed vide panchnama dated 21.12.2002, when order under the second proviso to section 132(1) was passed for deemed seizure of stock of goods, statement of one person was recorded and a restrain order u/s 132 was passed. Panchnama dated 21.12.2002 was the last panchnama as described in Explanation 2 to section 158BE and, therefore, the limitation has to be commenced from the said panchnama, rendering time limit to frame assessment u/s 158BC to be 31.12.2004. As against that, the impugned assessment is passed on 31.1.2005 which is not passed within the limitation described in section 158BE. The assessment, therefore, is bad in law and has to be quashed. It is also held that the point of time of issue of authorization will not have any relevance but it is a point of time when last panchnama is drawn in respect of authorization whether it is first authorization or it is last authorization. “Last panchnama” as relevant for Explanation 2 to Section 158BE will be the panchnama which show the conclusion of the search. Hence, assessment is barred by limitation and is not a valid assessment in the eyes of law - Decided against the Revenue.
|