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ITA No.939 & 940/Bang/2025 section 153A, and the limitation for such years is prescribed in section 153B(1)(a).

8.2.1 It was explained that though the expression "search is conducted"

is not specifically defined in the Act, the meaning can be understood from the scheme of section 153B(1) and its sixth proviso. The AR pointed out that the sixth proviso to section 153B(1) was inserted by the Finance Act, 2022, with retrospective effect from 01.04.2021. This proviso clarifies that when the last authorisation for search under section 132 is executed during the financial year commencing on 01.04.2020, the relevant assessment year for the purpose of completing the assessment shall be the assessment year commencing on 01.04.2021, and the time limit for completing such assessment shall be on or before 30.09.2022.

9. On the contrary, the learned DR vehemently opposed the arguments advanced by the assessee on the ground that the assessment orders are not time-barred under section 153B of the Income Tax Act. The learned DR submitted that the AO has correctly computed the limitation period strictly in accordance with the express provisions of section 153B read with section 132(3) and 132(8A) of the Act. It was emphasized that the computation of limitation is a matter of legislative mandate and not one of subjective interpretation. 9.1 The learned DR explained that section 153B(1) of the Act lays down the time limit for completion of assessment in cases of search. As per clause (a) of section 153B(1) of the Act, in respect of six assessment years immediately preceding the assessment year relevant to the previous year in which the search is conducted, the AO is required to complete the assessment within twelve months from the end of the financial year in which the last of the authorisations for search under section 132 of the Act was executed. Similarly, clause (b) prescribes the same limitation period for the relevant assessment year in which the search is conducted. Further, sub-section (2) of section 153B of the Act clearly provides that an authorisation shall be deemed to have been .

11. First Limb: Date of Conclusion of Search and Execution of Authorisation 11.1 Under this limb, the key issue for adjudication is at what point of time search deemed to be concluded for the purpose of computation of statutory time limit under section 153B of the Act for framing the assessment.

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ITA No.939 & 940/Bang/2025 11.2 The provision of section 153B(1) of the Act lays down the time limit for completion of assessment in search cases. The limitation is to be reckoned from the end of the financial year in which the last authorisation for search was executed. Sub-section (2) of section 153B of the Act provides that an authorisation shall be deemed to have been executed on the conclusion of the search as recorded in the last panchnama drawn in relation to the person searched. Hence, the conclusive event for determining limitation is the drawing of the last panchnama evidencing completion of search.

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ITA No.939 & 940/Bang/2025

12. Second Limb - Determination of Search Assessment Year and Relevant Financial Year for Limitation

12.1 The dispute in this limb of the argument relates to determining the correct "search year" for computing the limitation period prescribed under section 153B of the Income Tax Act, 1961. The assessee has contended that the "search year" should be determined based on the date on which the last authorisation for search was executed. As the AO him/herself considered the F.Y. 2020-21 relevant to A.Y. 2021-22 as search year for the purpose of the assessment, it should be admitted that the search was last authorisation for search was executed in the F.Y. 2020-21 and period of limitation under section 153B of the Act shall be reckoned from the end of F.Y. 2020-21 only. 12.2 On the other hand, the Department has argued determination of search year for the purpose of assessment should be based on the date of initiation of the search under section 132 of the Act and it has no relevance for the purpose of limitation under section 153B of the Act.