TMI Blog2019 (7) TMI 231X X X X Extracts X X X X X X X X Extracts X X X X ..... amended provisions of Section 153C applicable with prospective effect from 01.06.2015. The Court held that if such amended provisions are not made applicable to the searches carried out prior to 01.06.2015, they would affect the substantive rights of the persons who are brought within the ambit of Section 153C by virtue of such amendment. So far as the third question is concerned with regard to the limitation, the Court took the view that when the statute itself provides for an alternative period of limitation, merely because the period of limitation is provided under the first part has elapsed; it cannot be said that the notices were barred by the limitation on such ground. It had been stated that in terms of clause (b) of subsection (1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ter. 2. By this writ-application under Article 226 of the Constitution of India, the writ-applicant has prayed for the following reliefs: ( A) Your Lordships may be pleased to issue a writ of certiorari or a writ in the nature of certiorari or any other appropriate writ, order or direction for quashing and setting aside the impugned notices dated 2.11.2018 9.7.2018 u/s 153C of the Income Tax Act, 1961 at Annexure 'A' colly and assessment orders dated 22.12.2018 at Annexure 'G' colly. ( B) Pending admission, hearing, and disposal of this petition, ad-interim relief be granted and the Respondent be ordered to restrain from enforcing compliance of the impug ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sessment proceedings under section 158BC; and (c) immediately after the assessment proceedings are completed under section 158BC of the searched person. It was submitted that based upon the above judgment, the Central Board of Direct Taxes has issued Circular No.24 of 2015 dated 31.12.2015 stating that several High Courts held that the provisions of section 153C of the Act are substantially similar / pari materia to the provisions of section 158BC of the Act and therefore, the guidelines of the Supreme Court in Calcutta Knitwears s case (supra) apply to proceedings under section 153C of the Act for the purposes of assessment of income of the person other than the searched person. It was submitted that in this case there is an inordinate del ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the course of search pertains to the petitioner. It was submitted that the search, having been carried out prior to the amendment in section 153C of the Act, the proceedings under section 153C of the Act are invalid. 5. It was submitted that upon receipt of the satisfaction note, the petitioner had raised objections in respect of the same and requested the respondent to pass a reasoned order disposing of the same. However, the respondent instead of deciding the objections, has straightaway proceeded to pass assessment order under section 143(3) read with section 153C read with section 153A(1)(b) of the Income Tax Act, 1961. 6. Having regard to the submissions advanced by the learned advocate for the petit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ch amended provisions are not made applicable to the searches carried out prior to 01.06.2015, they would affect the substantive rights of the persons who are brought within the ambit of Section 153C of the Act by virtue of such amendment. So far as the third question is concerned with regard to the limitation, the Court took the view that when the statute itself provides for an alternative period of limitation, merely because the period of limitation is provided under the first part has elapsed; it cannot be said that the notices were barred by the limitation on such ground. While answering the last question, the Court held as under: 21.2 On a plain reading of section 153A of the Act, it is evident that the trigge ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2015-16 would be 2014-15, 2013-14, 2012-13, 2011-12, 2010- 11 and 2009-10. Therefore, in case any notices under section 153C of the Act which have been issued for assessment years beyond the six assessment years referred to hereinabove, such notices would be beyond jurisdiction as the same do not fall within the six assessment years as contemplated under section 153A of the Act. 6. Ultimately, the final order which came to be passed by the Court reads as under: In the light of the above discussion, the petitions succeed, and are accordingly, allowed. The impugned notices issued under section 153C of the Income Tax Act, 1961 in each of the petitions are hereby quashed and set aside. In cases where ..... X X X X Extracts X X X X X X X X Extracts X X X X
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