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

Facts

A search and seizure operation was conducted on Prathima Infrastructure Limited based on a joint warrant of authorization. The assessee argued that the assessment order was time-barred as the search concluded on February 12, 2020, making the assessment due by September 30, 2021. The Revenue contended that the search concluded on July 23, 2020, making the assessment order passed on March 31, 2022, within the time limit.

Held

The Tribunal held that the conclusion of search, for the purpose of determining the limitation period under Section 153B, is as recorded in the last panchanama. In this case, while the search at the assessee's premises concluded on February 12, 2020, a prohibitory order on other premises related to the joint warrant was revoked on July 23, 2020, which was considered the date of conclusion of the search for limitation purposes. Therefore, the assessment order was within the prescribed time limit.

Key Issues

Whether the assessment order is barred by limitation under Section 153B of the Income Tax Act, 1961, considering the date of conclusion of search based on a joint warrant of authorization, and whether additions made based on electronic evidence are valid.