Harigovind Vs ACIT (Madras High Court)
Madras High Court held that the provisions of section 153C of the Income Tax Act will not apply in case of initiation of search initiated on or after 01.04.2021. Accordingly, notices issued u/s. 153C are liable to be quashed and set aside.
Facts- On 29.01.2019, the Income Tax Authorities had conducted a search at 3rd party premises. According to the Authorities, they have received/obtained incriminating materials, pertaining to the petitioner, at the said 3rd party premises. Pursuant to the same, the notice u/s. 148A of the Act was issued by the Authorities on 15.03.2022 for the AY 2018-19. Subsequently, the notice u/s. 148 of the Act was issued, on 31.03.2022, without granting sufficient opportunity to the petitioner to file objections to the aforesaid notice dated 15.03.2022. Therefore, the petitioner challenged the notice dated 31.03.2022 by way of filing a writ petition in W.P.No.9958 of 2022, wherein this Court, vide order dated 22.04.2022, set aside the notice and directed the concerned officer to issue a fresh hearing.
Thereafter, AO-1st respondent had called for objections from the petitioner and accordingly, the petitioner submitted the objections. After considering the said objections, the 1st respondent had dropped the proceedings vide order dated 30.08.2022. After a time lapse of more than 5 months, the 2nd respondent had issued the impugned notice, u/s. 153C of the Act, on 07.02.2023 for AYs 2013-14 to 2019-20. Now, the main grievance of the petitioner is that no notice u/s. 153C of the Act can be issued after 01.04.2021 for all the AYs in terms of Sub-Section (3) of Section 153C.
