Court Allows Challenge to Notices Under Section 153C, Emphasizes Alternative Limitation Period

The Court found the writ-applications maintainable, allowing the petitioner to challenge the impugned notices. It clarified the prospective application of amended provisions of Section 153C of the Act from 01.06.2015. The Court emphasized considering the alternative limitation period for notices under Section 153C and detailed the computation of relevant assessment years under Section 153A. The final order quashed the impugned notices under Section 153C, setting aside assessment orders made without jurisdiction. The judgment upheld legal principles, ensuring consistency in interpretation and providing relief to the petitioner.

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Issues:
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 notices under Section 153C of the Act.
4. Relevant Assessment Years under Section 153A of the Act.

Issue 1: Maintainability of the writ-applications
The Court found the writ-applications maintainable, allowing the petitioner to challenge the impugned notices. The petitioner sought various reliefs, including the quashing of the notices and staying further proceedings for assessment.

Issue 2: Applicability of Section 153C of the Act
The Court clarified that the amended provisions of Section 153C of the Act, effective from 01.06.2015, apply prospectively. It emphasized that failure to apply these provisions to searches before the amendment would impact the substantive rights of individuals under Section 153C.

Issue 3: Limitation period for notices under Section 153C
Regarding the limitation period, the Court held that the alternative period of limitation provided by the statute must be considered. Merely because the initial period of limitation had elapsed did not render the notices under Section 153C barred by limitation.

Issue 4: Relevant Assessment Years under Section 153A
The Court analyzed Section 153A, emphasizing that the trigger point for issuing notices is a search under Section 132 or a requisition under Section 132A. It detailed the computation of six assessment years preceding the relevant assessment year, based on the search date. Any notices issued beyond these six assessment years were deemed beyond jurisdiction.

The final order quashed the impugned notices under Section 153C and set aside assessment orders initiated without jurisdiction. The judgment aligned with principles established in previous cases, ensuring consistency in legal interpretation. The Court applied the same legal principles to allow the petition, quash the impugned notice, and set aside any assessment orders made under Section 153C of the Income Tax Act, 1961.

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