Court allows writ applications under amended Section 153C, clarifies limitation period, quashes notices

The Court found the writ applications maintainable, interpreting the amended provisions of Section 153C of the Act to apply prospectively from 01.06.2015. It clarified that the limitation period for notice u/s. 153C is not rendered barred solely by the elapse of the initial period. The Court specified the relevant assessment years under Section 153A and quashed the impugned notices and assessment orders under Section 153C, ruling the initiation of proceedings as without jurisdiction. The judgment aligned with established legal principles, allowing the petition and making the rule absolute in favor of the petitioners, with no order as to costs.

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Issues:
1. Maintainability of the writ applications
2. Applicability of Section 153C of the Act post amendment from 01.06.2015
3. Limitation period for notice u/s. 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. The coordinate bench held that the petitions were maintainable, allowing the case to proceed further.

Issue 2: Applicability of Section 153C of the Act post amendment from 01.06.2015
The Court interpreted that the amended provisions of Section 153C of the Act, effective from 01.06.2015, applied prospectively. It reasoned that applying the amendments retrospectively would impact the substantive rights of individuals brought under Section 153C.

Issue 3: Limitation period for notice u/s. 153C of the Act
Regarding the limitation period, the Court clarified that when the statute provides an alternative period of limitation, the mere elapse of the initial period does not render the notices barred by limitation.

Issue 4: Relevant Assessment Years under Section 153A of the Act
The Court analyzed Section 153A of the Act concerning the trigger point for issuing notices. It specified that the notice must be issued for six assessment years preceding the assessment year relevant to the previous year of the search. The judgment detailed the assessment years for different groups based on the search dates.

The final order quashed and set aside the impugned notices issued under Section 153C of the Income Tax Act, 1961, and any corresponding assessment orders challenged. The Court ruled that the initiation of proceedings under Section 153C was without jurisdiction, leading to the success of the petitions. The judgment aligned with principles established in a prior case, applying the same legal standards to the present matter.

In conclusion, the Court allowed the petition, quashing the impugned notice and any related Assessment Order under Section 153C of the Income Tax Act, 1961. The ruling made the rule absolute in favor of the petitioners, with no order as to costs.

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