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

Facts

A search and seizure operation was conducted in the case of the assessee company and its associate entities. Incriminating material, including handwritten cash sheets and email data, was seized. The Assessing Officer (AO) made additions based on these documents, which the assessee contended were personal transactions of an employee and not linked to the company. The primary legal issue revolved around the limitation period for completing the assessment.

Held

The Tribunal held that the conclusion of search, for the purpose of computing the limitation period under Section 153B, is to be determined by the date of the last panchanama drawn in relation to any person in whose case the warrant was issued. The Tribunal found that the last panchanama in this case was drawn on 12.02.2020, concluding the search for the assessee. The Tribunal also noted that the extended limitation period due to COVID-19 was applicable. The Tribunal ruled that the assessment order, passed after this period, was time-barred.

Key Issues

Whether the assessment order was barred by limitation under Section 153B of the Income Tax Act, considering the date of conclusion of search and the impact of joint warrants and COVID-19 related extensions.