TMI Blog1998 (6) TMI 53X X X X Extracts X X X X X X X X Extracts X X X X ..... section 132(1) of the Income-tax Act. The brief facts leading to the filing of this writ petition are as follows : The first petitioner-firm have undertaken and executed various contract works with the Government from 1990 to 1995. The business premises of the petitioners and the residence of the second petitioner were searched as per the warrant of authorisation issued by the first respondent on April 30, 1996. The search commenced on April 30, 1996, at 4 p.m. The proceedings were closed on May 1, 1996, at 5 a.m. as temporarily concluded for the day to be commenced subsequently. The search again commenced on May 6, 1996, at 2 a.m. and the proceedings were closed on May 6, 1996, at p.m. as finally concluded. The assessment proceedings w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on of the petitioner in this connection is considered in the assessment order exhibit P-14 as follows : "One important aspect to be considered before entering into discussion regarding the undisclosed income is the assessee's claim regarding the time limit for completion of the block assessment. The assessee, by its telegram (received in this office on May 19, 1997), has claimed that the block assessment has become time barred on the ground that the search was carried out after executing the warrant of authorisation on April 30, 1996. The assessee's claim is that as the warrant was executed on April 30, 1996, the block assessment has become time barred on April 30, 1997. Execution of warrant for search has to be treated as completion of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e and the plea of limitation for the assessment it will go to the root of the matter, and hence the original petition is the only remedy. She submits that the petitioners will not be in a position to successfully canvass the interpretation of the provisions of the Income-tax Act before the Department. Hence, without going into the other aspects raised in the original petition, learned senior counsel confined her case to two of the following grounds : (i) The warrant of authorization for the search under section 132 of the Act was executed on April 30, 1996. Therefore, the period prescribed under section 158BE of the Act expired on April 29, 1997. That also happened to be the last day of that month for the assessment year. Therefore, the e ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cuted only on May 6, 1996, as finally concluded. The execution, according to him, means only completion, conclusion or implementation of the authorisation and not the date of the issue of the authorisation. He further drew inspiration and support as to the intendment of the Legislature to the Finance (No. 2) Bill of 1998, where Explanation 2 has been added which is as follows : "For the removal of doubts, it is hereby declared that the authorisation referred to in sub-section (1) shall be deemed to have been executed,--- (a) in the case of search, on the conclusion of search as recorded in the last panchnama drawn in relation to any person in whose case the warrant of authorisation has been issued." Though this Bill has not become an ..... X X X X Extracts X X X X X X X X Extracts X X X X
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