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

Facts

A search and seizure operation was conducted on the assessee, Prathima Infrastructure Limited, based on a joint warrant. The assessee argued that the assessment order was time-barred as the search concluded on February 12, 2020. The Revenue contended that the search concluded on July 23, 2020, with the revocation of a prohibitory order, making the assessment within the time limit.

Held

The Tribunal held that the search concluded on February 12, 2020, as recorded in the panchanama specific to the assessee's premises. The subsequent revocation of a prohibitory order at a different location did not extend the conclusion date for the assessee's specific search. Therefore, the assessment order passed on March 31, 2022, was indeed time-barred.

Key Issues

Whether the assessment order was barred by limitation under Section 153B of the Income Tax Act, 1961, considering the date of conclusion of search in relation to the assessee versus the conclusion date concerning other persons under a joint warrant.