2023 (5) TMI 1402 - HC - Income Tax

Validity of assessment order as barred by limitation - petitioner before us is the other person in terms of Section 153C - Appellant submission that the date when the satisfaction note was generated by AO of the petitioner i.e., the other person, which was on 24.12.2021, would be the date of the search, in terms of the first proviso to Section 153C - the period which could be assessed under Section 153C of the Act, which was six (6) AYs, prior to the amendment carried out on 01.04.2017, expired on 31.03.2017 and the larger period i.e., ten (10) years, which is provided in Explanation 1 appended to Section 153A of the Act, would not go, at least, beyond AY 2013-14. HELD THAT - These very issues are being considered by this Court in several other matters including 2024 (4) TMI 268 - DELHI HIGH COURT , titled Alankit Finsec Limited. Accordingly, issue notice. Respondent accepts notice on behalf of the respondent/revenue. Counter-affidavit will be filed within six weeks. Rejoinder thereto, if any, will be filed, at least five days before the next date of hearing. List the matter on 17.10.2023. In the meanwhile, no precipitate action will be taken against the petitioner till the next date of hearing.

Summary

The High Court allowed the petitioner's application subject to filing legible copies of annexures before the next hearing. The writ petition pertains to Assessment Year 2010-11 under Section 153C of the Income Tax Act. The petitioner argues that the assessment order and subsequent notices are flawed due to expired limitation period. The notice to the petitioner was issued on 28.12.2021. The petitioner's counsel contends that the period for assessment under Section 153C expired on 31.03.2017. The court will consider the matter further, with the next hearing scheduled for 17.10.2023. No immediate action against the petitioner until the next hearing.