Feeling aggrieved and dissatisfied with the impugned common judgment and order dated 14.09.2010 passed by the High Court of Delhi at New Delhi in ITA No 582 of 2009 and other allied appeals, by which the Division Bench of the High Court has allowed the said appeals preferred by the Revenue and set aside the orders passed by the Income Tax Appellate Tribunal, New Delhi (for short, ‘ITAT’) holding that the assessment orders passed in the case of the respective assessees were time barred as the assessments were not completed within two years from the end of the month in which the last authorisation for search under Section 132 of the Income Tax Act, 1961 (hereinafter referred to as the ‘Act’) was issued, the respective assessees have preferred the present appeals. 19.03.2001, 20.03.2001, 26.03.2001, 27.03.2001, 28.03.2001 & 11.04.2001 Panchnama drawn/executed and search completed in regard to 1 search warrant 2.2 During the execution of the search warrants dated 13.03.2001, the Income Tax authorities got the information about a locker belonging to the assessee in a bank.
Also Read: https://newslaw.in/case-type/civil/c-a-no-003481-003481-2022-2/
Since that Panchnama was drawn on 26.03.2001, two years period as prescribed under Section 158BE(b) of the Act came to an end by March, 2003 and the assessment order was passed in April, 2003, which according to the assessee was thus time barred.
By the impugned common judgment and order, the Division Bench of the High Court has allowed the said appeals and has set aside the order passed by the ITAT by holding that as the last Panchnama though related to search authorization dated 13.03.2001 was executed on 11.04.2001, limitation of two years was to be computed from 11.04.2001.
1 Learned counsel appearing on behalf of the respective assessees has vehemently submitted that in the facts and circumstances of the case, the High Court has erred in holding that the respective assessment orders were within the period of two years and therefore not barred by limitation. Shri Balbir Singh, learned ASG appearing on behalf of the Revenue has vehemently submitted that as per Explanation 2 of Section 158BE of the Act, when it is a case of search, period of limitation is to be counted from the date on which the last Panchnama was drawn.
Also Read: https://newslaw.in/case-type/civil/acquisition-of-land-and-deemed-lapse-under-the-act-2013/
It is submitted that the time for completion of the block assessment under Section 158BC/158BE is the conclusion of search/drawing of last Panchnama which will be relevant and not the dates of issuance of various authorizations.
While considering the aforesaid issue, Section 158BE which provides for time limitation for commencement of block assessment is required to be referred to, which is as under: “Section 158BE Time Limit for Completion of Block Assessment (1) The order under Section 158-BC shall be passed— ( a ) within one year from the end of the month in which the last of the authorisations for search under Section 132 or for requisition under Section 132-A, as the case may be, was executed in cases where a search is initiated or books of account or other documents or any assets are requisitioned after the 30th day of June, 1995 but before the 1st day of January, 1997; ( b ) within two years from the end of the month in which the last of the authorisations for search under Section 132 or for requisition under Section 132-A, as the case may be, was executed in cases where a search is initiated or books of account or other documents or any assets are requisitioned on or after the 1st day of January, 1997. [ Explanation 1.—In computing the period of limitation for the purposes of this section,— ( i ) the period during which the assessment proceeding is stayed by an order or injunction of any court; or ( ii ) the period commencing from the day on which the Assessing Officer directs the assessee to get his accounts audited under sub-section (2- A) of Section 142 and ending on the day on which the assessee is required to furnish a report of such audit under that sub-section; or ( iii ) the time taken in reopening the whole or any part of the proceeding or giving an opportunity to the assessee to be re-heard under the proviso to Section 129; or ( iv ) in a case where an application made before the Settlement Commission under Section 245-C is rejected by it or is not allowed to be proceeded with by it, the period commencing on the date on which such application is made and ending with the date on which the order under sub-section (1) of Section 245-D is received by the [Principal Commissioner or Commissioner] under sub-section (2) of that section, shall be excluded: Provided that where immediately after the exclusion of the aforesaid period, the period of limitation However, Panchnama drawn with respect to authorization dated 13.03.2001 was lastly drawn on 11.04.2001.
Therefore, the date of the Panchnama last drawn can be said to be the relevant date and can be said to be the starting point of limitation of two years for completing the block assessment proceedings.
Also Read: https://newslaw.in/case-type/civil/taxation-of-engineering-design-drawings-goods-or-services/
In view of the above and for the reasons stated above, all these appeals fail and the same deserve to be dismissed and are accordingly dismissed.
Case Title: ANIL MINDA Vs. COMMISSIONER OF INCOME TAX (2023 INSC 287)
Case Number: C.A. No.-000345-000350 / 2012
