TaxTMI 
TaxTMI 
2025 (11) TMI 103
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....lled as "the Act") issued by the respondent for the AY 2013-2014 to 2019-2020. 2. The writ petitions in W.P.Nos.23019, 23023, 23024, 23027, 23031, 23014 & 23033 of 2023 were filed by one Shri.Harigovind, whereas, the writ petitions in W.P.Nos.23562, 23588, 23591, 23594, 23577, 23550 & 23597 of 2023 were filed by one G.Ravindran HUF. The petitioners in all these writ petitions would be hereinafter referred to as "petitioner". 3. The common issue involved in all these writ petitions is as to whether the issuance of impugned notice, under Section 153C of the Act, is sustainable and in accordance with the provision of said Section of the Act. 4. The learned counsel appearing for the petitioner would submit that in this case, initially, on 29.01.2019, the Income Tax Authorities had conducted a search at 3rd party premises. According to the Authorities, they have received/obtained incriminating materials, pertaining to the petitioner, at the said 3rd party premises. Pursuant to the same, the notice under Section 148A of the Act was issued by the Authorities on 15.03.2022 for the AY 2018-19. Subsequently, the notice under Section 148 of the Act was issued, on 31.03.2022, without ....
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....ate of receipt, by the 2nd respondent, who is the Assessing Officer of the petitioner herein, of the assets or books of account or documents, is the material date relevant for the first proviso to sub section (1) of section 153C and to sub section (3) thereof and that date being on or after 01.04.2021, the notice dated 07.02.2023 void ab-initio 12. By referring the 1st proviso to Sub-Section (1) of Section 153C and the provisions of Sub-Section (3) of Section 153C, he would submit that on going through the aforesaid provisions (particularly the first proviso and sub-section (3)), it would be crystal clear that in case of "other person" (like the petitioner herein), the date of initiation of the search under section 132 shall be construed to the date of receiving the books of accounts by the 2nd respondent being the Assessing Officer having jurisdiction over such "other person". Hence on interpretation of this proviso along with sub-section (3) to section 153C, it would be clear that post 01.04.2021, Section 153C cannot be invoked as far as the petitioner is concerned. Hence, the notice dated 07.02.2023 is statutorily barred. Thus the entire proceedings are invalid and are to be ....
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....all be construed as reference to the date of receiving the books of account or documents or assets seized or requisitioned by the Assessing Officer having jurisdiction over such other person", which means that the date of initiation of search u/s. 132 in the second proviso to 153A(1) shall be construed as reference to the date of receiving of books of accounts or documents or assets seized by the assessing officer having jurisdiction over such other person. Thus the relevance of handing over of seized documents or assets is relevant for the purpose stated in the second proviso to Sec. 153A(1). 20. In the second proviso to Section 153A(1) of the Act, it has been provided that "assessment or reassessment, if any, relating to any assessment year or years referred to in this sub-section pending on the date of initiation of the year falling within the period of six assessment years and for the relevant assessment search under Section 132 or making of requisition under Section 132A, as the case may be, shall abate", which means the pending assessments within the period of 6 assessment years shall abate. 21. By referring the above proviso, he would submit that the abatement procedur....
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....rson to the JAO of the petitioner herein. In this regard, a reference was made to the first proviso to Section 153C(1), wherein it was stated that the initiation of search shall be the date, on which the materials were handed over to the concerned JAO, which means, in this case, the date of initiation of search in terms of first proviso to Section 153C(1) is on 25.11.2022, i.e., the date on which the materials were handed over to the JAO of the petitioner. 29. Further, by referring to Sub-Section (3) of Section 153C of the Act, it was contended by the petitioner that if any search was initiated on or after 01.04.2021, no proceedings can be initiated in terms of Section 153C of the Act. 30. In the case on hand, according to the petitioner, the search was initiated on 25.11.2022 and hence, as stated above no proceedings can be initiated in terms of Section 153C of the Act. Thus, the impugned notice came to be issued by the 2nd respondent, illegally and in contrary to Sub-Section (3) of Section 153C of the Act. 31. On the other hand, it was contended by the respondents that the first proviso to Section 153C(1) of the Act would apply only with regard to the abatement of the pr....
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.... it and published in the Official Gazette, specify the class or classes of cases in respect of such other person, in which the Assessing Officer shall not be required to issue notice for assessing or reassessing the total income for six assessment years immediately preceding the assessment year relevant to the previous year in which search is conducted or requisition is made and for the relevant assessment year or years as referred to in sub-section (1) of section 153A except in cases where any assessment or reassessment has abated. (2) Where books of account or documents or assets seized or requisitioned as referred to in subsection (1) has or have been received by the Assessing Officer having jurisdiction over such other person after the due date for furnishing the return of income for the assessment year relevant to the previous year in which search is conducted under section 132 or requisition is made under section 132A and in respect of such assessment year- (a) no return of income has been furnished by such other person and no notice under sub-section (1) of section 142 has been issued to him, or (b) a return of income has been furnished by such oth....
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....n required to be furnished under section 139; (b) assess or reassess the total income of six assessment years immediately preceding the assessment year relevant to the previous year in which such search is conducted or requisition is made and for the relevant assessment year or years Provided that the Assessing Officer shall assess or reassess the total income in respect of each assessment year falling within such six assessment years and for the relevant assessment year or years: Provided further that assessment or reassessment, if any, relating to any assessment year falling within the period of six assessment years and for the relevant assessment year or years referred to in this sub-section pending on the date of initiation of the search under section 132 or making of requisition under section 132A, as the case may be, shall abate 35. A reading of the second proviso to Section 153A(1) would show that the assessment or reassessment, if any, relating to any assessment year falling within the period of six assessment years and for the relevant assessment year or years referred to in this sub-section, 153C(1) pending on the date of initiation of the se....
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....r other person for all purposes. Thus, there cannot be two different date of initiation of search, either for the searched person or for the other person. 41. The provisions of Sub-Section (3) of Section 153C states that "153C(3) .....nothing contained in this Section shall apply in relation to a search initiated under Section 132 or books of account, other documents or any assets requisition under Section 132A on or after the 1st day of April, 2021" which means, if the search is initiated subsequent to 01.04.2021, the provision of Section 153C will not apply and accordingly, no proceedings can be initiated against the other person. 42. According to the petitioner, the date of handing over of the seized materials, i.e., 25.11.2022, is the date of initiation of search. If the said contention of the petitioner is accepted, obviously, the issuance of impugned notices dated 07.02.2023 by the 2nd respondent is without any authority and contrary to Sub-Section (3) of Section 153C of the Act and thus, the same is liable to be quashed. 43. In terms of Sub-Section (1) of Section 153C of the Act, for the purpose of calculating the six years period, the date of handing ov....
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....vision is not only for the purpose of abatement but also for all the other practical purposes. 46. For ready reference, the relevant portion of the judgement rendered in the case of CIT Vs. Jasjit Singh is extracted hereunder: "9. It is evident on a plain interpretation of Section 153C(1) that the Parliamentary intent to enact the proviso was to cater not merely to the question of abatement but also with regard to the date from which the six year period was to be reckoned, in respect of which the returns were to be filed by the third party (whose premises are not searched and in respect of whom the specific provision under Section 153-C was enacted. The revenue argued that the proviso [to Section 153(c)(1)] is confined in its application to the question of abatement. 10. This Court is of the opinion that the revenue's argument is insubstantial and without merit. It is quite plausible that without the kind of interpretation which SSP Aviation adopted, the A.O. seized of the materials - of the search party, under Section 132 - would take his own time to forward the papers and materials belonging to the third party, to the concerned A.O. In that event if the date ....