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TMI Blog2022 (1) TMI 1466X X X X Extracts X X X X X X X X Extracts X X X X ..... om the end of the month of January 2001. Accordingly, the assessment order should be completed on or before 31.01.2003, whereas the assessing officer completed the assessment only on 30.06.2003, which is absolutely time barred. Tribunal set aside the assessment order. We do not find any infirmity or illegality in the order so passed by the Tribunal, warranting interference. This court has categorically held that 'mere fact that the panchanama contains 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' and the same is squarely applicab ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Bankers situated at No.115, Arcot Road, Virugambakkam, Chennai-600 092. Pursuant to the same, notice under section 158 BC of the Act was issued on 25.06.2001, to which, the assessee filed his return of income disclosing Rs.21,34,144/- as his undisclosed income acquiescing with the date of warrant with reference to which M/s.Kalyani Thanga Maligai and M/s.Sugali Brothers were searched. The assessing officer made various additions and determined the total undisclosed income of the assessee at Rs.5,28,08,070/- and accordingly, levied tax and completed the assessment on 30.06.2003. Challenging the same, the assesseee filed appeal before the CIT(A), who by order dated 05.05.2006, partly allowed the appeal and reduced the addition to the tune of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... arch conducted under Section 132 of the Income Tax Act while dealing with block assessment? 4. When the matters were taken up for consideration, the learned counsel for the appellant as well as the respondent jointly submitted that the substantial questions of law involved herein were already decided and answered in favour of the assessee, in the case of A. Rakesh Kumar Jain v. Joint Commissioner of Income Tax [(2013) 31 taxmann.com 312 (Madras) / (2012) 254 CTR 576(Madras). The relevant paragraphs of the said decision are usefully extracted below: 13. As reasoned out therein, there could be only one authorisation and a panchanama drawn as regards the conduct of the search, i.e., once when the search party concluded the search and leaves th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Nair Vs. CIT reported in (1999) 237 ITR 70 (Ker), the Karnataka High Court held that there is no provision in the Criminal Procedure Code or in the Income Tax Act therein, for postponing the search for such a long period. It is worthwhile to extract the decision of the Karnataka High Court, which in clear terms brings out the concept of search and validity of the authorisation issued for the search. ............. 15. As already seen, merely because, more than one panchanama is drawn in the given case on one authorisation, one cannot construe that the subsequent and the last of the panchanama issued as one flowing out of the search as a last of the panchanama referrable to Explanation (2) to Section 158BE. Once the warrant of authorisation ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssued, the last of which is dated 01.06.2001. There was no seizure on 18.01.2001, 29.01.2001, 16.03.2001, 14.05.2001 and 01.06.2001. The prohibitory order was lifted on 29.01.2001 and hence, the Tribunal was of the opinion that the subsequent panchanama from 29.01.2001 are irrelevant and the time shall be reckoned for the purpose of determining the time limit for the completion of the assessment under section 158BE from the end of the month of January 2001. Accordingly, the assessment order should be completed on or before 31.01.2003, whereas the assessing officer completed the assessment only on 30.06.2003, which is absolutely time barred. Thus, the Tribunal set aside the assessment order. We do not find any infirmity or illegality in the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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