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TMI Blog2022 (10) TMI 569X X X X Extracts X X X X X X X X Extracts X X X X ..... relating to the third person to whom those assessments relate, is bound to take some time. More often than not, it is only upon completion of the primary assessments (under S.153A) that the Assessing Officer even comes to a reasoned conclusion as to whether proceedings are to be initiated against such other person or not. Thus, the transmission of seized materials/books/financials relating to the third person could take place at some distance of time from the framing of the Section 153A assessments. It is for this reason that Section 153C(2) provides for the framing of the assessment in respect of the year of search as well, subject to the seized materials being received by the Assessing Officer after the due date for furnishing of the ret ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... der relates to W.P.Nos.34213, 34214 & 34218 of 2019 wherein the petitioners challenge notices issued under Section 142(1) of the Income Tax Act, 1961 (in short 'Act') dated 22.11.2019 (W.P.Nos.34213 & 34214 of 2019) and 20.11.2019 (W.P.No.34218 of 2019), all relating to assessment year (A.Y.) 2015-16. 2.It appears that a regular assessment had been framed in the case of the petitioner in W.P.No.34213 of 2019 on 29.12.2017 relating to A.Y.2015-16. That assessment was challenged by way of a Writ Petition that came to be dismissed by a learned single Judge of this Court on 23.06.2021 as against which Writ Appeal No.2533 of 2021 came to be filed. 3.By way of brief background, I may mention that the main dispute in the assessment touch ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sment is stated to be the subject matter of appeal before the first appellate authority and no legal infirmity is made out before me as regards the impugned order of assessment warranting interference under Article 226 of the Constitution of India, it would be appropriate that the petitioner be relegated to statutory appeal. 8.This leaves W.P.Nos.558 & 563 of 2020 where an additional point is raised by the petitioners touching upon the validity of the assessment, as falling outside the block of six years provided under the scheme of block assessment. The argument of the petitioners is that the search was conducted on 15.12.2017 and therefore the block period for assessment should comprise the years 2012- 13 to 2017-18 only, whereas the imp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er shall issue the notice and assess or reassess total income of such other person of such assessment year in the manner provided in section 153A." 11. The explanatory notes to the provisions in Circular No.3 of 2006, particularly paragraph No.3.26 dealing with rationalization of the provisions relating to assessment of income in search and seizure cases, explain the provisions of Section 153C(2) in the following terms: '3.26 Rationalisation of the provisions relating to assessment of income in search and seizure cases A new sub-section (2) has been inserted in section 153C providing that in case of such other person for the assessment year relevant to the previous year in which search is conducted under section 132 or requisition is m ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e of other person referred to in section 153C, the period of limitation for making the assessment or reassessment shall be the period as referred to in clause (a) or clause (b) of this sub-section or nine months from the end of the financial year in which books of account or documents or assets seized or requisitioned are handed over under section 153C to the Assessing Officer having jurisdiction over such other person, whichever is later:' 13. The time frame for framing of an assessment in terms of Section 153C has been fixed bearing in mind the practical consideration that, assimilation of materials relating to the third person to whom those assessments relate, is bound to take some time. More often than not, it is only upon completion o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... furnished by such other person but no notice under sub-section (2) of section 143 has been served and limitation of serving the notice under sub-section (2) of section 143 has expired,....'. In the case of the petitioner in W.P.No.558 of 2020, the return has been filed on 26.09.2018 under Section 139(4), and is thus a valid return. Notice under Section 143(2) has been issued on 27.08.2019, also within time. Condition (b) is thus not satisfied and no proceedings may be initiated under Section 153C. The impugned order of assessment is set aside and this Writ Petition is allowed. 17. In the case of the petitioner in W.P.No.563 of 2020, original return was filed on 30.03.2019 which is a valid return as Section 139(4), as it stood at the r ..... X X X X Extracts X X X X X X X X Extracts X X X X
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