Courts Quash Income Tax Notices, Grant Relief to Petitioners

The Court held the writ-applications to be maintainable and quashed the notices issued under Section 153C of the Income Tax Act, 1961. Any assessment orders based on those notices were also set aside. The Court ruled that the initiation of proceedings under Section 153C was without jurisdiction, granting relief to the petitioners. Notices for assessment years beyond those specified under Section 153A were deemed beyond jurisdiction. Previous judgments' principles were applied, leading to the success of the petitions and the quashing of the impugned notice and related assessment orders.

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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.

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