2019 (7) TMI 1374 - HC - Income Tax

Assessment u/s 153C - notice u/s. 153C was barred by limitation - validity of notice u/s 153C - HELD THAT - The coordinate bench in ANILKUMAR GOPIKISHAN AGRAWAL VERSUS ACIT, 2019 (6) TMI 746 - GUJARAT HIGH COURT took the view that the writ applications were maintainable. With regard to the second question, the Court took the view that the Legislature has specifically made the amended provisions of Section 153C 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 of the Act by virtue of such amendment. So far as the third question is concerned with regard to the limitation, the 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. Assessment Order has been passed u/s 153C the same is also quashed and set aside

Summary

Issues:
1. Maintainability of writ applications
2. Applicability of Section 153C of the Act
3. Bar on limitation for notice u/s. 153C
4. Relevant Assessment Years under Section 153A

Issue 1: Maintainability of writ applications
The court found the writ applications to be maintainable, allowing for further consideration of the case. The petitioners sought various reliefs, including the quashing of impugned notices and staying further assessment proceedings for specific assessment years.

Issue 2: Applicability of Section 153C of the Act
The court addressed the applicability of Section 153C of the Act, emphasizing that the amended provisions were to be applied prospectively from 01.06.2015. It was noted that failure to apply these amendments to searches conducted before the specified date would impact the substantive rights of individuals falling under the section.

Issue 3: Bar on limitation for notice u/s. 153C
Regarding the limitation for issuing notices under Section 153C, the court held that alternative periods of limitation provided by the statute should be considered. Merely because one period had elapsed did not automatically render the notices time-barred.

Issue 4: Relevant Assessment Years under Section 153A
The court interpreted Section 153A of the Act concerning the issuance of notices following a search or requisition. The judgment highlighted the specific assessment years relevant to different search dates, ensuring that notices issued beyond the specified assessment years would be considered beyond jurisdiction.

The final order quashed the impugned notices under Section 153C of the Income Tax Act and set aside assessment orders initiated without jurisdiction. The court applied principles from a previous case to the present matter, leading to the allowance of the petition and the quashing of the impugned notice and related assessment orders.