Dismissal of Writ Petitions Seeking Mandamus on Time Limit for Assessment Under IT Act

The High Court dismissed two writ petitions filed by companies in the cement and iron ore beneficiation sectors seeking mandamus for disposal of applications and extension of time limit for final assessment under Section 153-A of the I.T. Act. The court held that the period of limitation for assessment proceedings was governed by Section 153-B at the time of search in 2014. It declined to issue directions on jurisdiction and inspection of search records, stating it exceeded its jurisdiction. The court concluded that no exceptional circumstances warranted interference under Article 226, advising petitioners to address grievances before the Appellate Authority if necessary.

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Issues:
1. Writ petitions seeking mandamus for disposal of applications and extension of time limit for final assessment.
2. Similarity in facts and issues of both writ petitions.
3. Period of limitation for completion of Assessment Proceedings under Section 153-A of the I.T. Act.
4. Jurisdiction to initiate Assessment Proceedings and inspection of search records.
5. Dismissal of both writ petitions.

Analysis:
1. The petitioners, including companies operating in cement and iron ore beneficiation, filed writ petitions seeking mandamus for disposal of applications and extension of time limit for final assessment. The petitions requested proper disposal of applications along with an extension of the time limit for final assessment, as well as inspection of search records and satisfaction notes.

2. Due to the similarity in facts and issues of both writ petitions, they were heard together and disposed of by a common order. The petitions concerned the Assistant Commissioner of Income Tax, Central Circle, Sambalpur, handling proceedings under Section 153-A of the I.T. Act for block assessments for six years following a search conducted in 2014 at the premises of the companies and their directors.

3. The court addressed the period of limitation for completing the Assessment Proceedings under Section 153-A of the I.T. Act. The Revenue conceded that the period of limitation was governed by Section 153-B in operation at the time of the search in 2014, not the amended period effective from 2016. The court noted that the Revenue's stand on the period of limitation addressed the relief sought for an extension of the limitation period.

4. Regarding the jurisdiction to initiate Assessment Proceedings and inspection of search records, the court declined to issue directions to the Assessing Officer on deciding the jurisdictional issue before completing the Assessment Proceedings. The court emphasized that passing such an order would exceed its jurisdiction under Article 226 of the Constitution. The court also noted that the Assessing Officer had provided an opportunity for inspection of records, and any further opportunities could be at the discretion of the Assessing Authority.

5. Ultimately, the court dismissed both writ petitions, concluding that no exceptional case was made out warranting interference under Article 226 of the Constitution at that stage of the proceedings before the Assessing Officer. The court highlighted that petitioners could address any grievances before the Appellate Authority if needed.

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