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2008 (4) TMI 343 - AT - Income TaxValidity of assessment made u/s 158BC for the block period - Search And Seizure u/s 132(1) - documents found and seized - no prohibitory order issued - block assessment completed by the Assessing Officer barred by limitation - Learned counsel for the assessee, Contended that Time limit available to the AO to complete the block assessment i.e. two years from the date of drawing the last valid panchnama was up to September 30, 2002, and the assessment completed by him vide an order dated October 31, 2002 - HELD THAT:- Having regard to all these facts of the case and the surrounding circumstances as existed during the relevant period when the search and seizure action was conducted, we are of the view that there was a sufficient ground making it impracticable to the search team to complete the seizure and conclude the search on September 15, 2000, and the situation warranting issue of a prohibitory order as contemplated u/s 132(3) was clearly obtained. In our opinion, the entire exercise of concluding the search temporarily on September 15, 2000, drawing the first panchnama on that date, passing a prohibitory order on September 15, 2000, revoking the said prohibitory order subsequently on October 3, 2000, and concluding the search finally on October 4,2000, by making the seizure of the remaining material as per the second panchnama thus was in accordance with the relevant provisions of law and there was no infirmity much less a legal infirmity making the second panchnama drawn on October 4, 2000, invalid in so far as the assessee's case is concerned as sought to be contended by the ld DR. In that view of the matter, we hold that the second panchnama dated October 4, 2000, was a valid panchnama having been drawn in accordance with law and since the same was the last panchnama drawn in the present case, the warrant of authorisation was finally executed and the search was finally concluded on the date on which the said panchnama was drawn, i.e., October 4, 2000, as per Explanation 2(a) to section 158BE. The block assessment completed by the AO on October 31, 2002, i.e., within a period of two years from the month in which the warrant of authorisation had been executed thus was well within the time limit and the same was not barred by limitation. Keeping in view the said decision of the hon'ble Delhi High Court in the case of M.B. Lal v. CIT [2005 (9) TMI 64 - DELHI HIGH COURT] as well as all the relevant facts of the case, we find no merit in the contentions raised on behalf of the assessee on this preliminary issue and upholding the impugned order of the ld CIT (A) confirming the validity of assessment made by the AO under section 158BC, we dismiss ground of the assessee's appeal.
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