2019 (7) TMI 1499 - HC - Income Tax

Assessment u/s 153C - maintainability of the petitions - scope of Amended provisions of Section 153C - HELD THAT - 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 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. The issue involved in the present petition is identical. We propose to apply the very same principles of law as laid down and explained ANILKUMAR GOPIKISHAN AGRAWAL VERSUS ASSISTANT COMMISSIONER OF INCOME TAX, CIRCLE 3 (2) AHMEDABAD 2019 (6) TMI 746 - GUJARAT HIGH COURT and allied matters to the facts of the present case. Petition is allowed. The impugned notice at Annexure ' A' is hereby quashed and set aside.

Summary

Issues involved:
1. Maintainability of the writ-applications
2. Applicability of Section 153C of the Income Tax Act, 1961
3. Limitation period for notice u/s. 153C
4. Relevant Assessment Years under Section 153A

Analysis:
1. The Court addressed the maintainability of the writ-applications and held them to be maintainable.
2. Regarding the applicability of Section 153C of the Act, the Court noted that the amended provisions were made effective from 01.06.2015. The Court emphasized that the retrospective application of these provisions to searches conducted before the effective date would impact substantive rights.
3. On the issue of limitation for notice u/s. 153C, the Court clarified that the alternative period of limitation provided by the statute must be considered, and the mere expiration of the initial period does not render the notices time-barred.
4. Concerning the relevant Assessment Years under Section 153A, the Court explained that the trigger point for issuing a notice is a search under Section 132 or a requisition under Section 132A. The Court provided a detailed analysis of the computation of assessment years based on the date of search or requisition.

Final Judgment:
The Court quashed and set aside the impugned notices issued under Section 153C of the Income Tax Act, 1961, and any assessment orders based on those notices were also quashed. The Court ruled that the initiation of proceedings under Section 153C was without jurisdiction, leading to the success of the petitions. The final order granted relief to the petitioners, emphasizing that notices issued for assessment years beyond those specified under Section 153A would be beyond jurisdiction. The Court applied principles established in previous judgments to decide the present case, ultimately allowing the petition and quashing the impugned notice and related assessment orders.