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2019 (7) TMI 187 - HC - Income TaxValidity of assessment u/s 153C - whether the notice u/s. 153C was barred by limitation - scope of amended provisions of Section 153C effect from 01.06.2015 - HELD THAT - In case any notices u/s 153C which have been issued for assessment years beyond the six assessment years referred to hereinabove, such notices would be beyond jurisdiction as the same do not fall within the six assessment years as contemplated u/s 153A The impugned notices issued u/s 153C in each of the petitions are hereby quashed and set aside. In cases where the assessment orders are subject matter of challenge, the impugned assessment orders are hereby quashed and set aside on the ground that the very initiation of proceedings u/s 153C was without jurisdiction. See ANILKUMAR GOPIKISHAN AGRAWAL VERSUS ASSISTANT COMMISSIONER OF INCOME TAX, CIRCLE 3 (2) AHMEDABAD 2019 (6) TMI 746 - GUJARAT HIGH COURT . In the light of the above discussion, the petitions succeed, and are accordingly, allowed. The impugned notices issued u/s 153C in each of the petitions are hereby quashed and set aside.
Issues involved:
1. Maintainability of the writ applications. 2. Applicability of Section 153C of the Act to searches initiated before 01.06.2015. 3. Limitation period for notice u/s. 153C of the Act. 4. Assessment years contemplated u/s. 153A of the Act. Analysis: Issue 1: Maintainability of the writ applications The Court found the writ applications maintainable and proceeded to address the substantive legal issues raised by the petitioners regarding the validity of the notices issued under Section 153C of the Income Tax Act, 1961. Issue 2: Applicability of Section 153C of the Act to searches initiated before 01.06.2015 The Court held that the amended provisions of Section 153C of the Act, effective from 01.06.2015, are applicable prospectively. Not applying these provisions to searches conducted before the amendment date would impact the substantive rights of individuals brought under the ambit of Section 153C by the amendment. Issue 3: Limitation period for notice u/s. 153C of the Act The Court clarified that when the statute provides an alternative period of limitation, the mere expiration of the period under the first part does not render the notices barred by limitation. The Court emphasized that the notices cannot be considered time-barred solely on this ground. Issue 4: Assessment years contemplated u/s. 153A of the Act The Court interpreted Section 153A of the Act concerning the issuance of notices to searched persons for filing income returns for six assessment years preceding the relevant assessment year of the search. The Court provided a detailed explanation of the computation of assessment years based on the search dates for different groups involved in the case. Ultimately, the Court quashed and set aside the impugned notices issued under Section 153C of the Income Tax Act, 1961, along with any assessment orders passed under the same section. The Court ruled that the initiation of proceedings under Section 153C was without jurisdiction in these cases, leading to the success of the petitions. The judgment aligned with the principles established in a previous related case, ensuring consistency in legal interpretation and application.
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