Court clarifies application of amended Section 153C, emphasizes prospective effect to protect rights

The Court confirmed the maintainability of the writ-applications, allowing them to proceed. It clarified that the amended provisions of Section 153C of the Act, effective from 01.06.2015, apply prospectively to avoid impacting substantive rights. The Court held that alternative limitation periods should be considered for notices under Section 153C, and mere expiry of the initial period does not render the notices time-barred. Additionally, the Court determined the relevant Assessment Years under Section 153A based on the trigger of a search or requisition, leading to the quashing of impugned notices and related Assessment Orders under Section 153C.

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Issues:
1. Maintainability of writ-applications
2. Applicability of Section 153C of the Act pre and post 01.06.2015
3. Bar on limitation for notice u/s. 153C of the Act
4. Relevant Assessment Years under Section 153A of the Act

Issue 1: The maintainability of writ-applications was confirmed by the coordinate bench, allowing the petitions to proceed.

Issue 2: The Court clarified that the amended provisions of Section 153C of the Act, effective from 01.06.2015, would apply prospectively. It emphasized that applying these provisions retroactively would impact the substantive rights of individuals under Section 153C.

Issue 3: Regarding the limitation for notices under Section 153C of the Act, the Court held that alternative limitation periods provided by the statute should be considered. The mere expiry of the period under the first part does not automatically render the notices time-barred.

Issue 4: The Court analyzed Section 153A of the Act to determine the relevant Assessment Years for issuing notices. It stated that the trigger for issuing a notice under this section is a search under Section 132 or a requisition under Section 132A. The Court specified the computation of six assessment years preceding the relevant assessment year, based on the date of search or requisition.

Final Order: The Court allowed the petitions, quashing and setting aside the impugned notices under Section 153C of the Income Tax Act, 1961. Assessment orders challenged were also quashed on grounds of jurisdictional issues. The Court applied principles from a previous judgment to the present case, leading to the quashing of the impugned notice and any related Assessment Orders under Section 153C of the Act.

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