SC Confirms s.153C Assessments Invalid Without Incriminating Material, Upholds Quashing for Multiple Years, Revenue SLP Dismissed

SC upheld the HC's quashing of assessments framed u/s 153C for AYs 2014-15, 2015-16, 2016-17, 2017-18, 2018-19 and 2020-21, holding that in the absence of incriminating material relatable to those years, the jurisdictional preconditions for invoking s.153C were not satisfied. The Court endorsed the HC's view that without such material, the AO cannot validly reopen concluded assessments or cause abatement of pending proceedings. The assessment for AY 2019-20, which was not tainted by the same jurisdictional defect, was left undisturbed. Finding no error in the HC's reasoning, SC dismissed the revenue's Special Leave Petition.

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The Supreme Court, with Justices J.B. Pardiwala and R. Mahadevan presiding, issued an order regarding a Special Leave Petition. The Court, after hearing arguments from the petitioner's counsel, including Senior Advocate Mr. Rupesh Kumar, found no grounds to interfere with the High Court's decision. Consequently, the Special Leave Petition was dismissed. Additionally, any pending applications were also disposed of. Delay in filing was condoned.

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