Search completion under Income-tax law is fixed by revocation of a prohibitory order, not by a later panchnama.

A search under the Income-tax Act was treated as having ended on 21-12-2002 because the prohibitory order issued under section 132(3) was revoked the same day at 3.15 p.m., and no fresh order followed. The later panchnama dated 3-1-2003 did not show that the search continued in close proximity or continuity, nor did it support an inference that it was drawn to extend the search period. As only a brief search was recorded between 5.05 p.m. and 5.15 p.m. on 3-1-2003, the later panchnama did not alter the legal position. The Tribunal's finding was upheld and the Revenue's appeal failed.

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Issues: Whether the search proceedings had concluded on 21-12-2002 so that the panchnama dated 3-1-2003 could not extend the search period or alter the legal position arising from the revocation of the prohibitory order under section 132(3) of the Income-tax Act, 1961.

Analysis: The record showed that the prohibitory order dated 21-12-2002 had been revoked at 3.15 p.m. on the same day and that no fresh prohibitory order was issued thereafter. The panchnamas placed on record did not establish that the search remained incomplete or that it continued in close proximity or continuity beyond 21-12-2002. The material also did not support any inference that the later panchnama was prepared to extend time. The only act on 3-1-2003 was the preparation of a panchnama recording a brief search between 5.05 p.m. and 5.15 p.m.

Conclusion: The search was treated as having ended on 21-12-2002, and the later panchnama did not alter that position. The finding of the Tribunal was upheld and the Revenue's appeal failed.

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