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TMI Blog2013 (9) TMI 871X X X X Extracts X X X X X X X X Extracts X X X X ..... hdrew the prohibitory order under Section 132(3) relating to the Almirah and prepared a Panchnama showing that nothing was found nor anything was seized from the said Almirah, therefore, essentially from 03.02.1999 when the last Panchnama was drawn and the restraint order passed, till 13.04.1999 when the last Panchnama was drawn whereby the restraint order was vacated, nothing else was found and in fact no further search was conducted, therefore, the last Panchnama dated 13.04.1999 was merely a release order and the same could not extend the period of limitation. Time limit for completion of the block assessment will have to be reckoned from 3-2-1999 on which date the search was concluded against the appellant. Consequently, the block as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... CIT(A) was dismissed by the Tribunal on coming to the same conclusion that the block assessment order was barred by limitation. It is submitted by learned counsel for the appellant that the CIT(A) and the Tribunal fell in error in coming to the conclusion that the block assessment order was time barred. It was submitted that the Explanation-2(a) to Section 158BE of the Act was not properly construed, which has resulted in passing of the orders impugned. The learned CIT(A) while dealing with the factual aspect of the search and the Panchnama prepared observed thus:- I have given a careful consideration to the material facts on record as also the submissions made before me and it is observed that search was conducted on 03.02.1999 and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tory order for an empty Almirah is not known. On perusal of the Panchnama dated 13-4- 1999, it becomes abundantly clear that nothing was found nor anything was seized on vacating the prohibitory order. In other words, the said Almirah was vacant at the time of passing order u/s 132(3) on 3-2-1999 and whatever books of a/c, documents, jewellery etc. were found, either they were seized or not seized on 3-2-1999 itself. Therefore, I am of the view that the Almirah, which was sealed on 3-2-1999, was without any basis or purposes as nothing was found from the said Almirah and nothing was accordingly, seized. In other words, drawing of a Panchnama on 13-4- 1999 was an empty formality to vacate the restraint order issued earlier on 3-2-1999. In ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... seized or found from the said almirah. Even no statement was recorded during the course of proceedings on 13.04.1999 and the proceedings on the said date were closed within half an hour i.e. it started at 2.30 PM and closed at 3.00 PM, therefore, it is not known that what was the purpose for issuing a prohibitory order for an empty almirah particularly when nothing is brought on record to substantiate that the assessee was not cooperating for opening of almirah, if it was locked at the time of search on 3.2.1999. In the instant case, nothing was done on 13.4.1999 except merely preparing the Panchnama and the search commenced at 2.30 PM which was concluded at 3.00 PM. Therefore, in view of the ratio laid by the Hon'ble Supreme Court in t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed on that date and, as such, the assessment made on 27.04.2001 was within limitation in view of provisions contained in Section 158BE(1)(b) of the Act. A bare look at the Explanation-2(a) would reveal that the same provides for deeming authorisation to have been executed 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. The explanation nowhere provides that it would be the last Panchnama drawn irrespective of the fact as to whether the conclusion of search has been recorded in the said Panchnama or not. From the facts noticed by both the CIT(A) and the Tribunal, which are not in dispute, it is clear that the Panchnama dated 13.04.199 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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