Court dismisses petition challenging Income Tax Act notices, emphasizes assessment procedures and appeal remedies.

The Court dismissed the petition challenging notices issued under Section 153A of the Income Tax Act, 1961. The petitioner's request to quash the notices and release seized documents was denied. The Court emphasized the statutory provisions requiring assessment or reassessment in case of a search or requisition, highlighting the abatement of pending assessments within a specified period. The absence of a provision preventing recovery of unpaid taxes during assessment proceedings was crucial. The Court found the petitioner's arguments lacking merit, noting non-compliance with assessment procedures and the availability of statutory appeal remedies.

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Issues:
Challenge to notices under Section 153A of the Income Tax Act, 1961 and release of seized documents.

Analysis:
1. The petitioner sought to quash notices dated 8.7.2019 issued under Section 153A of the Income Tax Act for multiple Assessment Years and requested the release of seized documents from a search and seizure operation. The petitioner claimed recovery proceedings initiated for previous years and objected to the issuance of notices for subsequent years.

2. The statutory provision under Section 153A of the Income Tax Act, 1961 was examined, which mandates assessment or reassessment in case of a search or requisition. The provision specifies the abatement of pending assessments falling within the six-year period preceding the search or requisition. The Court emphasized the need for a plain reading of the section to understand the abatement provision clearly.

3. The Court noted that the first proviso to Section 153A(1) requires the assessing officer to assess or reassess the total income for each of the six assessment years, while the second proviso states that any pending assessments within the specified period shall abate. The petitioner's contention regarding the abatement of demand raised in response to the notice under Section 153 was addressed.

4. It was highlighted that the absence of a statutory provision preventing the recovery of unpaid taxes during assessment proceedings under Section 153A was crucial. The Court opined that the petitioner's argument for quashing the notice based on Section 153A lacked merit as the notice was not challenged on jurisdictional grounds.

5. The Court observed that the petitioner had not responded to the notice or furnished returns for the assessment years in question. Additionally, the availability of statutory appeal remedies for any assessment or reassessment orders was noted, emphasizing the importance of complying with assessment procedures under Section 153A within the prescribed time limits.

6. After considering the arguments and statutory provisions, the Court concluded that the writ petition lacked merit and dismissed it, finding no grounds to entertain the petition challenging the notices issued under Section 153A of the Income Tax Act, 1961.

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