TMI Blog2023 (8) TMI 161X X X X Extracts X X X X X X X X Extracts X X X X ..... levant assessment year in which the requisition was made would be 31.03.2018 and the period of limitation would expire on 31.12.2020. No assessment was initiated on or before the said date under Section 153A. The assessments were initiated that too under Section 148 for the assessment years 2013-14 to 2018-19 on 31.03.2021, long after the assessment period had expired. Section 153A was introduced in the Act notwithstanding the provisions, inter alia, of Sections 147 and Section 148. Hence, when no proceedings were taken under Section 153A, after the requisition made under Section 132, the Assessing Authority is disabled from proceeding for any assessment. Insofar as assessments pending and abated under Section 153A, after the expiry of 21 months limitation period under Section 153B there can be no proceeding taken under the Act either for regular assessment under Section 143 or under Section 153A or reassessment under Section 147 read with 148. WP allowed. - HONOURABLE THE CHIEF JUSTICE K. VINOD CHANDRAN And HONOURABLE MR. JUSTICE PARTHA SARTHY For the Petitioners : Mr.Ajay Kumar Rastogi, Sr. Advocate : Mr.Parijat Saurav, Advocate Ms. Smriti Singh, Advocate Ms. Shilpi Keshri, Adv ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 5.2019 for the said assessment year. The petitioner filed an e-return for the assessment year 2018-19 on 26.03.2019. On December, 2019, the limitation for passing assessment order under Section 153A for the assessment years 2013-14 to 2018-19 expired as per Section 153B. The Benami Cell dropped the proceedings under the Benami Act and forwarded the case, with a report, back to the Assessing Officer. On 31.03.2021, notices were issued under Section 148 for the assessment years 2013-14 to 2018-19, which was first challenged in an interlocutory application in the pending writ petition and then later after withdrawing the interlocutory application, challenged in CWJC No. 17372 of 2021. 5. The question arising in the writ petitions, is identical and is one of limitation, requiring refund of the amounts seized and setting aside of the notices issued under Section 148. The failure of the Assessing Officer to initiate any proceedings under Section 153A would preclude the Assessing Officer from carrying out a regular assessment or a reassessment under Section 147 read with Section 148 of the Act is the compelling argument. 6. We heard Shri A.K.Rastogi, learned Senior Counsel for the petitio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er Section 132A. The third proviso empowers the Central Government by a Notification to specify a class or classes of cases in which the Assessing Officer is not required to issue such notices. The third proviso restricts such issuance of notice in the relevant assessment year or years unless the Assessing Officer has in his possession of books of accounts or documents on evidence revealing the income represented in the form of asset, which has escaped assessment, to be equivalent to or in excess of Rs. 50 lacs, in the aggregate. 10. The effect of Section 153A and its ramifications and consequences are no longer res integra. The High Court of Delhi in Kabul Chawla (supra) has held so. 37. On a conspectus of Section 153A(1) of the Act, read with the provisos thereto, and in the light of the law explained in the aforementioned decisions, the legal position that emerges is as under: (i) Once a search takes place under Section 132 of the Act, notice under Section 153A(1) will have to be mandatorily issued to the person searched requiring him to file returns for six assessment years immediately preceding the previous year relevant to the assessment year in which the search takes place. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nctly stated in paragraph 14, which reads as under:- 14. In view of the above and for the reasons stated above, it is concluded as under: (i) that in case of search under section 132 or requisition under section 132A, the Assessing Officer assumes the jurisdiction for block assessment under section 153A; (ii) all pending assessments/reassessments shall stand abated; (iii) in case any incriminating material is found/unearthed, even, in case of unabated/completed assessments, the Assessing Officer would assume the jurisdiction to assess or reassess the total income taking into consideration the incriminating material unearthed during the search and the other material available with the Assessing Officer including the income declared in the returns; and (iv) in case no incriminating material is unearthed during the search, the Assessing Officer cannot assess or reassess taking into consideration the other material in respect of completed assessments/unabated assessments. Meaning thereby, in respect of completed/unabated assessments, no addition can be made by the Assessing Officer in the absence of any incriminating material found during the course of search under section 132 or requi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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