A search under section 132 was conducted upon premises of assessee company on 7-11-2000 based on authorisation dated 4-11-2000.\u00a0 Said authorisation was executed on 8-11-2000 when search was completed and panchnama was made-On 10-11-2000 a search was conducted on basis of fresh authorisation dated 10-11-2000. On 4-12-2000, investigation team again conducted search upon assessee under same old authorisation dated 10-11-2000 and passed prohibitory order under section 132(3) and items were inventorised.\u00a0 On 7-11-2001, i.e. almost after a period close to one year, investigation team again visited premises under same old authorisation dated 10-11-2000 for conducting search and prohibitory order passed on 4-12-2000 was converted into deemed seizure under section 132(1)(iii). There was nothing searched on this day except passing of conversion order from section 132(3) to 132(1)(iii). A block assessment order was passed on 28-11-2003 Assessee submitted that revenue could not conduct search after almost one year on basis of an old authorisation dated 10-11-2000 and draw a panchnama concluding search. It contended that limitation under section 158BE should begin from date of last drawn panchnama i.e. 8-11-2000, and, thus, impugned assessment order passed on 28-11-2003 was barred by limitation.\u00a0 According to revenue, limitation would start from 7-11-2001 when order of deemed seizure was passed under section 132(iii) by virtue of Explanation 2 read with section 158BE and, hence, block assessment framed vide order dated 28-11-2003 was within limitation period. Tribunal held that the department could not keep search action in abeyance for a long period of almost one year from date of last authorisation more so when after a period of one year nothing was searched but only prohibitory order passed one year back was converted into deemed seizure, therefore, panchnama dated 7-11-2001 drawn based on authorisation dated 10-11-2000 was bad in law and, therefore, limitation could not be counted from 7-11-2001 but it was ought to be counted from 10-11-2000 or at most from 4-12-2000. Accordingly the\u00a0 assessment order dated 28-11-2003 was barred by limitation.\u00a0 (BP 1-4-1990 to 7-11-2000)<\/p>\n","protected":false},"excerpt":{"rendered":"
S. 158BE : Block assessment-Time limit-merely passing the prohibitary order without actual seizure-Deemed seizure-Limitation period not extended-Order is held to be barred by limitation. [S. 132, 132(3)] <\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21],"tags":[],"class_list":["post-16963","post","type-post","status-publish","format-standard","hentry","category-income-tax-act"],"acf":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-4pB","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/16963","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/comments?post=16963"}],"version-history":[{"count":2,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/16963\/revisions"}],"predecessor-version":[{"id":26143,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/16963\/revisions\/26143"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=16963"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=16963"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=16963"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}