PCIT Vs Ojjus Medicare Pvt. Ltd. (Supreme Court of India)
The matter arose from a batch of writ petitions and an Income Tax Appeal challenging the initiation of assessment proceedings under Section 153C of the Income-tax Act following a search conducted on 18 October 2019. The principal issues concerned the computation of the block assessment period under Sections 153A, 153B and 153C, the meaning of the expression “relevant assessment year”, the applicability of the ten-year assessment block introduced by the Finance Act, 2017, and the conditions prescribed in the Fourth Proviso to Section 153A for reopening assessments beyond six years.
The petitioners contended that notices issued for Assessment Years (AYs) 2010-11, 2011-12, 2012-13 and 2013-14 were beyond the permissible block period when computed from the date on which the seized material was handed over to the Assessing Officer of the “other person”. They further argued that AYs 2010-11 and 2011-12 could not be reopened because, under the law as it stood before 1 April 2017, the limitation period for reassessment had already expired and the Finance Act, 2017 could not revive those completed assessments. Some petitioners also challenged the notices on the ground that the alleged escaped income represented by assets was below the statutory threshold of ₹50 lakh prescribed in the Fourth Proviso to Section 153A.
