2019 (8) TMI 1339 - HC - Income Tax

Assessment u/s 153C - period of limitation - HELD THAT - Legislature has specifically made the amended provisions of Section 153C of the Act applicable with prospective effect from 01.06.2015. The Court held that if such amended provisions are not made applicable to the searches carried out prior to 01.06.2015, they would affect the substantive rights of the persons who are brought within the ambit of Section 153C by virtue of such amendment. So far as the third question is concerned with regard to the limitation, the Court in ANILKUMAR GOPIKISHAN AGRAWAL VERSUS ACIT 2019 (6) TMI 746 - GUJARAT HIGH COURT took the view that when the statute itself provides for an alternative period of limitation, merely because the period of limitation is provided under the first part has elapsed; it cannot be said that the notices were barred by the limitation on such ground In case any notices u/s 153C which have been issued for assessment years beyond the six assessment years referred to herein above, such notices would be beyond jurisdiction as the same do not fall within the six assessment years as contemplated u/s 153A. 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.

Summary

Issues:
1. Maintainability of writ applications
2. Applicability of Section 153C of the Act pre and post amendment
3. Limitation period for notice u/s. 153C of the Act
4. Relevant Assessment Years under Section 153A of the Act

Analysis:
1. The Court addressed the maintainability of the writ applications and found them to be maintainable.
2. Regarding the applicability of Section 153C of the Act pre and post amendment, the Court held that the amended provisions are applicable with prospective effect from 01.06.2015 to safeguard substantive rights.
3. Concerning the limitation period for notice u/s. 153C of the Act, the Court ruled that alternative periods of limitation provided by the statute must be considered, and mere expiration of one period does not render the notices time-barred.
4. The Court interpreted Section 153A of the Act, emphasizing that the trigger point for issuing notices under this section is a search under Section 132 or a requisition under Section 132A. The Court clarified the computation of six assessment years preceding the relevant assessment year based on the search date.

Final Order:
The Court quashed and set aside the impugned notices issued under Section 153C of the Income Tax Act, 1961, and any assessment orders subject to challenge were also quashed on the grounds of jurisdictional issues. The petitions succeeded, and the Court made the rule absolute, with no order as to cost.

Conclusion:
The Court applied principles established in previous cases to the present petition, allowing it and quashing the impugned notice. Any assessment orders passed under Section 153C of the Income Tax Act, 1961 were also quashed and set aside. The Court's decision was based on jurisdictional grounds and adherence to statutory provisions.