Court allows appeal delay, exempts application. Invalidates assessment due to search warrant challenge. Finance Act amendment impact considered, remits for comprehensive review. Appeals disposed.

The court condoned the delay in filing the appeal and allowed the exemption application. The validity of the search warrant issued by the Additional Director of Income-tax was challenged, leading to the invalidation of the subsequent assessment. The court considered the impact of a Finance Act amendment, directing a remittal of the matter back to the Tribunal for a comprehensive review of all grounds raised by both parties. Subsequently, the appeals were disposed of based on these terms.

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Issues:

1. Condonation of delay in filing the appeal.
2. Exemption application in relation to the appeal.
3. Validity of the search warrant issued by the Additional Director of Income-tax.
4. Impact of the Finance Act amendment on the validity of the search warrant and assessment.
5. Remittal of the matter back to the Tribunal for consideration of all grounds raised by both parties.

Condonation of Delay:
The delay in filing the appeal was condoned by the court through CM No. 1578 of 2010, and the application was disposed of accordingly.

Exemption Application:
An exemption application in CM No. 1577 of 2010 was allowed subject to all just exceptions, and the application was disposed of by the court.

Validity of Search Warrant:
The appeals (I.T.A. Nos. 155 of 2010 and 169 of 2010) were based on a common order by the Income-tax Appellate Tribunal concerning the assessment year 2001-02. The assessee contended that the search warrant issued by the Additional Director of Income-tax (Investigation) was invalid, rendering the subsequent assessment invalid as well. The Tribunal accepted this argument based on precedents and did not delve into other grounds raised by either party due to the invalidity of the search warrant.

Impact of Finance Act Amendment:
The Revenue's counsel highlighted an amendment introduced by the Finance (No. 2) Act, 2009, granting the Additional Director the authority to issue warrants of authorization retrospectively from June 1, 1994. As a result, the court set aside the impugned order and directed the matter to be remitted back to the Tribunal for a comprehensive review of all grounds raised by both the assessee and the Revenue.

Remittal to Tribunal:
The court remitted the matter back to the Tribunal, reviving the Revenue's appeal and the assessee's appeal on all the original points raised. Consequently, the appeals were disposed of based on these terms.

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