PCIT Vs Ojjus Medicare Pvt. Ltd. (Delhi High Court)
The case of PCIT Vs Ojjus Medicare Pvt. Ltd., adjudicated by the Delhi High Court, has significant implications in the realm of income tax assessments, particularly concerning search cases. The judgment delves into the intricacies of Sections 153A, 153B, and 153C of the Income Tax Act, 1961, shedding light on their application, amendments, and overriding effects. Here’s a comprehensive breakdown of the key conclusions drawn from the case:
A. Prior to the insertion of Sections 153A, 153B and 153C, an assessment in respect of search cases was regulated by Chapter XIVB of the Act, comprising of Sections 158B to 158BI and which embodied the concept of a block assessment. A block as-sessment in search cases undertaken in terms of the provisions placed in Chapter XIVB was or-dained to be undertaken simultaneously and parallelly to a regular assessment. Contrary to the scheme underlying Chapter XIVB, Sections 153A, 153B and 153C contemplate a merger of regular assessments with those that may be triggered by a search. On a search being undertaken in terms of Section 153A, the jurisdictional AO is enabled to initiate an assessment or reassess-ment, as the case may be, in respect of the six AYs’ immediately preceding the AY relevant to the year of search as also in respect of the “relevant assessment year”, an expression which stands defined by Explanation 1 to Section 153A. Of equal significance is the introduction of the concept of abatement of all pending assessments as a consequence of which curtains come down on regular assessments.
