Section 153A time-bar in search assessments renders an assessment invalid where the year falls outside the ten-year block period.

Section 153A search assessment for AY 2011-12 was held invalid because the year fell outside the ten-year block period computed from the end of the assessment year relevant to the search year, making the proceedings time-barred and beyond jurisdiction. Grounds framed by the Revenue with reference to Section 153C were treated as irrelevant to the impugned Section 153A proceedings and could not survive. The assessment was therefore unsustainable for want of jurisdiction, and the Revenue's appeal failed.

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Issues: (i) Whether proceedings initiated under Section 153A of the Income-tax Act, 1961 for Assessment Year 2011-12 were barred as the year fell outside the ten-year block period; (ii) Whether the Revenue's grounds, being framed in the context of Section 153C of the Income-tax Act, 1961 rather than Section 153A, could survive.

Issue (i): Whether proceedings initiated under Section 153A of the Income-tax Act, 1961 for Assessment Year 2011-12 were barred as the year fell outside the ten-year block period.

Analysis: The search was conducted on 14.10.2020 and the notice under Section 153A was issued for Assessment Year 2011-12. The assessment year was found to lie beyond the permissible ten-year period computed from the end of the assessment year relevant to the previous year in which the search was conducted. The view was supported by judicial precedent relied upon in the order, and the first appellate authority had already held the assessment to be beyond limitation and therefore unsustainable.

Conclusion: The challenge to jurisdiction under Section 153A succeeded, and the assessment for Assessment Year 2011-12 was held to be invalid.

Issue (ii): Whether the Revenue's grounds, being framed in the context of Section 153C of the Income-tax Act, 1961 rather than Section 153A, could survive.

Analysis: The grounds raised by the Revenue were noted to relate to assessments framed under Section 153C, whereas the impugned proceedings arose under Section 153A. The grounds were therefore treated as not arising from the orders under challenge.

Conclusion: The Revenue's grounds were liable to be dismissed on this additional ground.

Final Conclusion: The assessment could not be sustained for want of jurisdiction under Section 153A for the relevant year, and the Revenue's appeal failed in full.

Ratio Decidendi: In search assessments, proceedings under Section 153A of the Income-tax Act, 1961 cannot be validly initiated for an assessment year falling outside the statutory ten-year block period computed from the end of the assessment year relevant to the year of search.

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