Limitation challenge to Section 153C assessment prompts interim protection against coercive action pending further hearing.

A challenge was raised to a notice and assessment under Section 153C of the Income-tax Act for Assessment Year 2010-11 on the ground of limitation, with reference also to the pre-amendment regime and the ten-year span discussed under Section 153A. The High Court issued notice, sought a counter-affidavit and rejoinder, and granted interim protection by directing that no precipitate coercive action be taken against the petitioner until the next hearing date.

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Issues: Whether the assessment and demand actions under Section 153C of the Income-tax Act, 1961 were barred by limitation for Assessment Year 2010-11, and whether interim protection against coercive action was warranted pending consideration.

Analysis: The petition was listed on an interim basis in connection with an assessment for Assessment Year 2010-11. The challenge raised was that the notice under Section 153C of the Income-tax Act, 1961 and the consequent assessment order were time-barred, with reference also made to the period available under the pre-amendment regime and to the ten-year span discussed in relation to Section 153A of the Income-tax Act, 1961. The Court issued notice, called for a counter-affidavit and rejoinder, and directed that no precipitate action be taken against the petitioner till the next date of hearing.

Outcome: Notice issued. Interim protection granted against precipitate action until the next hearing date.

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