Court Clarifies Applicability of Section 153C Retroactively, Invalidates Assessment Orders

The Court found the writ-applications maintainable, addressing key questions including the applicability of Section 153C of the Act to searches initiated before 01.06.2015. It clarified that the amended provisions of Section 153C would apply retrospectively to protect substantive rights. Regarding the limitation period for notice under Section 153C, the Court held that alternative limitations should be considered. The Court interpreted Section 153A concerning relevant assessment years and specified the applicable years based on search dates. Ultimately, the Court quashed impugned notices and invalidated assessment orders due to lack of jurisdiction, allowing the petition and setting aside related orders under Section 153C.

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Issues Involved:
1. Maintainability of the writ-applications
2. Applicability of Section 153C of the Act to searches initiated before 01.06.2015
3. Limitation period for notice u/s. 153C of the Act
4. Relevant Assessment Years contemplated u/s. 153A of the Act

Issue 1: Maintainability of the writ-applications
The Court found the writ-applications maintainable. A batch of writ-applications concerning the legality of notice under Section 153C of the Act was heard and disposed of. The Court addressed four key questions, including the maintainability of the petitions. Ultimately, the maintainability of the writ-applications was upheld.

Issue 2: Applicability of Section 153C of the Act to searches initiated before 01.06.2015
The Court clarified that the amended provisions of Section 153C of the Act, effective from 01.06.2015, would apply even to searches conducted before that date. It emphasized that failing to apply the amended provisions retrospectively would impact the substantive rights of individuals falling within the scope of Section 153C due to the amendment.

Issue 3: Limitation period for notice u/s. 153C of the Act
Regarding the limitation period, the Court held that when the statute provides an alternative limitation period, the mere expiry of the initial period does not render the notices time-barred. The Court reasoned that the alternative period of limitation should be considered, and the notices could not be deemed invalid solely based on the elapsed primary limitation period.

Issue 4: Relevant Assessment Years contemplated u/s. 153A of the Act
The Court interpreted Section 153A of the Act concerning the issuance of notices for six assessment years preceding the assessment year relevant to the year of search. It specified the assessment years applicable based on the search dates for different groups. The Court emphasized that any notices issued beyond the specified assessment years would exceed the jurisdiction granted under Section 153A of the Act.

In the final order, the Court quashed and set aside the impugned notices issued under Section 153C of the Income Tax Act, 1961, and invalidated assessment orders challenged in the petitions due to the lack of jurisdiction in initiating proceedings under Section 153C. The Court applied principles from previous judgments to the present case, leading to the allowance of the petition, quashing of the impugned notice, and setting aside any related Assessment Orders passed under Section 153C of the Income Tax Act, 1961.

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