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2012 (12) TMI 164 - HC - Income TaxPeriod of limitation for passing assessment order u/s 158BE - Revenue herein conducted search initiation operation on 12.12.2001 - A Prohibitory order was issued on 13.12.2001 and panchanama evidencing the seizure of materials was also drawn - On 08.02.2002 & 15.02.2002, further panchanamas were drawn evidencing issuing of prohibitory order without being in pursuance of any fresh authorisation – Assessee contended that assessment order was passed on 27.02.2004, hence, beyond the period of limitation - Revenue took the view that the assessment made u/s 158BC on 27.02.2004 was within the limitation prescribed u/s 158BE read with Explanation 1 for passing the order u/s 158 BC. Held that:- Once the warrant of authorisation has been issued and the premises is searched and the search party leaves the premises, there is the end of the search and what could be postponed is only seizure of the articles and issuance of prohibitory order ; however, limitation for the completion of the block assessment begins on the conclusion of the search and issuance of panchanama and in case of single authorisation, the moment such party leaves the premises by drawing of the panchanama noting conclusion of the search, the limitation period begins As to the search completed on 13.12.2001 with drawing of the panchanama and the search party leaving the premises, the mere fact that the panchanama contain the observation that "search continues" per se would not enable the search party to keep the search in a suspended animation to carry on the search in future date to contend that the limitation has to be worked out on the last panchanama drawn ie. 15.02.2002, thus calculating the limitation from 15.02.2002. Accepting the case of the assessee that the limitation ends on 31.12.2003. In favour of assessee
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