PRATHIMA INFRASTRUCTURE LIMITED,HYDERABAD vs. DCIT., CENTRAL CIRCLE-2(4), HYDERABAD

Facts

The assessee, Prathima Infrastructure Limited, was subjected to a search and seizure operation under Section 132 of the Income Tax Act. Incriminating material, including cash sheets and emails, was found. The Assessing Officer (AO) made additions to the income based on these findings, and the Commissioner (Appeals) upheld these additions.

Held

The Tribunal held that the assessment order was time-barred. The search in the assessee's case concluded on 12.02.2020, and the subsequent assessment order passed on 31.03.2022 was beyond the prescribed limitation period of 12 months from the end of the financial year in which the search concluded, even after considering extensions due to COVID-19.

Key Issues

Whether the assessment order passed under Section 153A is barred by limitation under Section 153B, considering the conclusion date of the search and the impact of COVID-19 extensions. Whether additions made based on electronic evidence are sustainable.