2022 (3) TMI 1140 - HC - Income Tax

Assessment u/s 153A - Period of limitation - HELD THAT - The limitation for passing the assessment order was 30th September, 2021 and it was in view of the said circumstance the Court had directed that the assessment proceeding be carried on and, in the event, an order is passed, the same would not be given, effect to, during the pendency of the writ petition. This Court is of the view that the order dated 9th April, 2021 is clear, categorical and cogent. It admits of no ambiguity. The Assessing Officer s interpretation that assessment proceeding was not to be completed during the pendency of the writ petition is untenable in law. This Court is of the view that proceedings against petitioner no.1 under Section 153A of the Act have become time barred. Accordingly, the same are quashed.

Summary

Issues:
1. Quashing of non-jurisdictional and time-barred notices and summons under Section 153A of the Income Tax Act, 1961.
2. Interpretation of the order dated 9th April, 2021 regarding assessment proceedings.

Analysis:
1. The petitioners sought an interim order to quash alleged non-jurisdictional and time-barred notices and summons issued by the respondents under Section 153A of the Income Tax Act, 1961. The petitioner argued that the proceedings against petitioner no.1 became time-barred on 30th September, 2021, as confirmed by the respondents' own statement before the Court on 9th April, 2021. Despite the time bar, the respondents issued a notice in January 2022, to which the petitioner responded by stating the proceedings were barred by limitation. However, the respondents continued issuing summons, prompting the petitioner's application for quashing the proceedings.

2. The Court examined the order dated 9th April, 2021, which directed that assessment proceedings be carried on but any order passed would not be given effect to during the pendency of the writ petition. The Court clarified that the Assessing Officer's interpretation, that the assessment proceeding should not be completed during the writ petition's pendency, was legally untenable. The Court held that the proceedings against petitioner no.1 under Section 153A of the Act had indeed become time-barred and consequently quashed the same. As no notice had been issued under Section 153C of the Act to petitioner nos. 2 to 4, the Court disposed of the writ petition concerning them, granting them liberty to address their grievances if notices were issued to them under Section 153C of the Act.

This comprehensive analysis covers the issues of quashing non-jurisdictional and time-barred notices and summons under Section 153A of the Income Tax Act, 1961, as well as the interpretation of the order dated 9th April, 2021, providing a detailed understanding of the judgment delivered by the Delhi High Court.