Harigovind Vs ACIT (Madras High Court)
The writ petitions challenged notices dated 07.02.2023 issued under Section 153C of the Income Tax Act, 1961 for Assessment Years 2013-14 to 2019-20. The petitions were filed by Shri Harigovind and G. Ravindran HUF, raising a common issue regarding the validity of the notices under Section 153C.
The petitioner submitted that a search was conducted on 29.01.2019 at the premises of a third party, during which the Income Tax Authorities allegedly found incriminating material relating to the petitioner. Thereafter, a notice under Section 148A was issued on 15.03.2022 for AY 2018-19, followed by a notice under Section 148 on 31.03.2022. The petitioner challenged the Section 148 notice in W.P. No.9958 of 2022, and by order dated 22.04.2022, the High Court set aside the notice and directed a fresh hearing. After considering the petitioner’s objections, the Assessing Officer dropped the proceedings on 30.08.2022. More than five months later, on 07.02.2023, the respondent issued notices under Section 153C for AYs 2013-14 to 2019-20.
The petitioner contended that the books of account and seized materials were handed over to the Jurisdictional Assessing Officer on 25.11.2022. Relying upon the first proviso to Section 153C(1) read with Section 153C(3), it was argued that, for an “other person,” the date of initiation of search is the date on which the Assessing Officer having jurisdiction receives the seized books, documents or assets. Since that date was after 01.04.2021, Section 153C could not be invoked and the notices were void.
