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TMI Blog2024 (7) TMI 843X X X X Extracts X X X X X X X X Extracts X X X X ..... dated 26.12.2022 of the Learned Assistant Commissioner of Income Tax (hereinafter referred as Learned AO ) assessing incomes of AYs. 2011-12 and 2012-13 as Rs. 1,86,78,520/- and Rs. 2,93,49,503/- respectively. 2. Brief facts of the case are that search under section 132 of the Income Tax Act was conducted in the case of Rakesh Jain Group on 2.11.2017. Shri Prahlad Kumar Aggarwal was also covered under search operation. During the search of Shri Prahlad Kumar Aggarwal certain documents pertaining to Shri Samant Jerath were found. The Assessing Officer of Shri Prahlad Kumar Aggarwal had recorded his satisfaction dated 24.9.2021 and handed over the seized material to the Learned AO of appellant / assessee. The seized material were perused and arriving at satisfaction that the information contained in seized documents pertained to assessee and have a bearing on determination of income of assessee recorded satisfaction note on 24.3.2022. Notice under section 153C was issued on 29.3.2022. Notices under section 142(1) of the Income Tax Act, 1961 were issued on 26.10.2022 and along with questionnaire dated 24.11.2022. Thereafter vide assessments order dated 26.12.2022 for AY 2011-12 and 20 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ave to be reckoned bearing the aforesaid date in mind. Although in the present batch of writ petitions, the date of actual handing over has not been explicitly mentioned in a majority of the writ petitions, learned counsels for respective sides had addressed submissions based on the assumption that it would be the date of issuance of the Satisfaction Note by the AO of the non-searched person and in the case of nonavailability of such a note, the date of issuance of the Section 153C notices which would be pertinent for the purposes of the First Proviso to Section 153C. 87. Assuming, therefore, that the handover of material gathered in the course of the search and pertaining to the non-searched person occurred between 01 April 2021 to 31 March 2022, the same would essentially constitute FY 2021-22 as being the previous year of search for the purposes of the non-searched entity. As a necessary corollary, the relevant AY would become AY 2022-23. AY 2022-23 would thus constitute the starting point for the purposes of identifying the six years which are spoken of in Section 153C. The six AYs are envisaged to be those which immediately precede the AY so identified with reference to the pr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... date indubitably constituting the end of the AY relevant to the previous year of search. Viewed in light of the above, the block period of 10 AYs would be as follows:- Computation of the ten-year block period as provided under Section 153C read with Section 153A of the Act No. of years AY 2022-23 1 AY 2021-22 2 AY 2020-21 3 AY 2019-20 4 AY 2018-19 5 AY 2017-18 6 AY 2016-17 7 AY 2015-16 8 AY 2014-15 9 AY 2013-14 10 91. Tested on the aforesaid precepts, it would be manifest that AY 2022-23 would form the first year of the block of ten AYs and with the maximum period of ten AYs terminating in AY 2013-14. We, in this regard also bear in consideration the following instructive passages as appearing in the decision handed down by a learned Judge of the Madras High Court in A.R. Safiullah. We deem it appropriate to extract the following paragraphs from that decision:- 9. Explanation-I is clear as to the manner of computation of the ten assessment years. It clearly and firmly fixes the starting point. It is the end of the assessment year relevant to the previous year in which search is conducted or requisition is made. There cannot be any doubt that since search was made in this case on 10 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ot be elastically construed. 11. One other contention urged by the standing counsel has to be dealt with. It is pointed out that the petitioner has invoked the writ jurisdiction at the notice stage. Since the petitioner has demonstrated that the subject assessment year lies beyond the ambit of the provision, the respondent has no jurisdiction to issue the impugned notice. Once lack of jurisdiction has been established, the maintainability of the writ petition cannot be in doubt. In our considered opinion, the decision in A.R. Safiullah correctly expounds the legal position and the interpretation liable to be accorded to the identification of the ten AYs which are spoken of in Sections 153A and 153C. 92. List II, forming part of this batch pertains to cases where Satisfaction Notes of the AO of the non-searched person were drawn between the period 01 April 2022 to 31 March 2023 and 01 April 2023 to 31 March 2024. Tested on the principles enunciated by us in the preceding passages of this judgment, we come to the conclusion that the relevant six AYs would comprise the following years, when computed for the period 01 April 2022 to 31 March 2023:- Computation of the six-year block peri ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , 2011-12, 2012-13 and 2013-14 would clearly fall beyond the ambit of ten A.Ys as provided under Section 153C read with Section 153A. We note in this behalf that all of the writ petitions forming part of List II pertain to the aforenoted AYs 2010-11, 2011-12, 2012-13 and 2013-14. 98. We are therefore of the opinion that the Section 153C notices issued against the writ petitioners placed in List 1 and insofar as they pertain to AYs 2010-11, 2011-12 and 2012-13 would not sustain being beyond the relevant assessment year which could have possibly formed the basis for initiation of action under that provision. Similarly, the Section 153C notices impugned by the writ petitioners placed in List II and insofar as they pertain to AYs 2010-11, 2011-12, 2012-13 and 2013-14 and which have been found to fall outside the net of relevant assessment year , being the ten year block, would be liable to be set aside on this score alone. 8. In view of abovesaid material facts and well settled principles of law the additions made in the impugned order dated 26.12.2022 for assessment year 2011-12 and 2012-13 in pursuance to satisfaction note dated 24.9.2021 are barred by time. The impugned orders are b ..... X X X X Extracts X X X X X X X X Extracts X X X X
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