Case Law Details
Agni Estates and Foundations Private Limited Vs DCIT (Madras High Court)
Madras High Court held that clause (xi) to Explanation to Section 153B of the Income Tax Act relating to the exclusion of the period taken for handing over seized material to the assessing officer is effective prospectively from 01.04.2021. Accordingly, prior assessment years are held to be barred by limitation.
Facts- The premises of the petitioner had been subject to a search u/s 132 of the Act and notices u/s. 153A had been issued pursuant to the same. The petitioner challenged those notices in an earlier round of litigation unsuccessfully, and those writ petitions had come to be dismissed on 17.03.2021. Pending those writ petitions, the petitioner had enjoyed interim protection for a substantial length of time. While disposing those writ petitions, this court directed the revenue to proceed to complete the assessments and orders had come to be passed on 29.01.2022 impugned now. The challenge to the assessments raises one legal issue which goes to the root of the matter, relating to the bar of limitation.
The main ground challenging orders of assessment for Assessments Years (AYs) 2011-12 to 2019-20 is the bar of limitation and inter alia, the batch of 9 assessment years can be divided into two. Limitation is to be computed in terms of Section 153B, read with the Explanation thereunder and the extension provided by the Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Act, 2020 (‘TOLA’).
Conclusion- In the present case, the last date for completion of assessment as prescribed by Section 153B is within a period of twenty-one months from the end of the financial year in which the last of the authorisations for search under section 132 or for requisition under section 132A was executed.
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