ACIT Vs Vijay Bihari Kandhari (Supreme Court of India)
Summary: The Supreme Court declined to interfere with the Bombay High Court judgment quashing notices issued under Section 153C of the Income-tax Act for AYs 2014-15 to 2019-20. A search was conducted on Oberoi Realty Limited and others on 21.08.2019, during which material concerning Vijay Bihari Kandhari was allegedly found. The assessee argued that, since the Assessing Officer of the searched person and the assessee was the same, no transfer of records to oneself was possible and the assessment proceedings, extended under TOLA, had to be completed by 30.09.2021. The Revenue contended that transfer of records by the Investigation Wing on 21.08.2020 extended limitation until 31.03.2022. Relying on Super Malls Pvt. Ltd. v. PCIT, the High Court held that the second limb of the third proviso to Section 153B(1) could not apply where both Assessing Officers were the same. It consequently quashed the time-barred proceedings. The Supreme Court found no good ground to interfere under Article 136, condoned the delay, dismissed the special leave petition and disposed of pending applications, leaving the High Court ruling undisturbed.
Read HC Judgment in this case: Vijay Bihari Kandhari Vs ACIT (Bombay High Court)
FULL TEXT OF THE SUPREME COURT JUDGMENT/ORDER
1. Delay condoned.
2. We do not find a good ground to interfere with the impugned judgment in exercise of our jurisdiction under Article 136 of the Constitution of India. Accordingly, the special leave petition is dismissed.
3. Pending application(s), if any, shall stand disposed of.
