Time-bar in search assessments: statutory limitation under the search-code defeats later assessment, rendering it void and allowed for the assessee.

Whether a final assessment under search-related provisions was time-barred: the Tribunal applied the statutory time-code for search assessments, holding that section 153B prescribes the outer completion period (18 months from end of financial year of last search authorization or 12 months from end of year when seized materials were handed over, whichever is later) and that eligibility under the dispute resolution provision did not extend that limit. On the facts the assessment dated 19.01.2024 fell beyond the prescribed period ending 31.03.2023, so the assessment under the search provisions was held time-barred and void ab initio, and appeals were allowed for the assessee.

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Issues: Whether the final assessment order passed under section 153C read with section 144C(13) of the Income-tax Act, 1961 on 19.01.2024 is barred by limitation under section 153B of the Income-tax Act, 1961.

Analysis: The Tribunal examined the time-limits prescribed for completion of assessments arising from search cases. Section 153B prescribes a separate code for time limits in search assessments, including the proviso applicable to persons covered by section 153C, specifying completion within 18 months from the end of the financial year in which the last authorization for search was executed or 12 months from the end of the financial year in which seized books/documents are handed over, whichever is later. The assessee is an eligible assessee under section 144C(15), but the Tribunal analysed whether that status extends the time-limit beyond what section 153B mandates. On the facts, the search authorisation and dates meant the assessment under section 153C had to be completed on or before 31.03.2023. The Assessing Officer's final order was dated 19.01.2024, beyond the period fixed by section 153B; thus the assessment was held to be time-barred despite the assessee being an eligible assessee under section 144C.

Conclusion: The assessment order passed under section 153C read with section 144C(13) dated 19.01.2024 is barred by limitation under section 153B and is void ab initio; appeals are allowed in favour of the assessee.

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