Madhav Power Private Limited Vs ACIT (Gujarat High Court)
The Gujarat High Court heard a writ petition filed under Article 226 of the Constitution challenging a notice dated 30.03.2026 issued under Section 148 of the Income Tax Act, 1961 for reopening the assessment of the petitioner for Assessment Year (AY) 2015-16. The petitioner had filed its return of income for AY 2015-16 declaring NIL income. A search under Section 132 was conducted on 18.05.2024 on the MSK and Madhav Group, which included the petitioner. Following the search, the respondent issued the impugned notice under Section 148 stating that books of account or documents seized during the search pertained to or related to the petitioner and that the requisite approvals had been obtained. The petitioner challenged the notice primarily on the ground that it was barred by limitation.
The petitioner contended that since the search was conducted on 18.05.2024, falling in Financial Year 2024-25 corresponding to AY 2025-26, the statutory framework applicable by virtue of Section 152(3) required computation of the ten-year period by including the search assessment year. According to the petitioner, AY 2025-26 would be the first year in the ten-year block and AY 2016-17 the tenth year, placing AY 2015-16 beyond the permissible limitation. The petitioner relied upon Sections 149 and 153A, Explanation 1 to Section 153A, and judicial precedents including Dinesh Jindal v. Assistant Commissioner of Income-tax, Principal Commissioner of Income-tax (Central-1) v. Ojjus Medicare (P.) Ltd., and A.R. Safiullah v. ACIT.
