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IN THE HIGH COURT OF GUJARAT AT AHMEDABAD
A.S. SUPEHIA, PRANAV TRIVEDI
Parag Rameshbhai Gathani (Through Poa Holder Dhiren Vinodchandra Shah) – Appellant
Versus
Income Tax Officer, Ward 2 International Taxation – Respondent
| Table of Content |
|---|
| 1. challenge to notice issuance under tax law. (Para 2 , 4) |
| 2. details of search and assessment procedures. (Para 5 , 6) |
| 3. petitioner's arguments on delay in proceedings. (Para 7 , 8) |
| 4. respondent's justification for notice issuance. (Para 9 , 10 , 12) |
| 5. legal standards for satisfaction note recording. (Para 14 , 16 , 17) |
| 6. analysis of delay in recording satisfaction note. (Para 18 , 20) |
| 7. final ruling quashing the notices. (Para 21) |
JUDGMENT :
A.S. SUPEHIA, J.
(1) These writ petitions raise identical issues and, therefore, with the consent of the parties, the same are decided by a common judgement and order.
(2) The issue involved in these petitions pertains to the challenge to the issuance of a notice under Section 153C of the Income Tax Act, 1961 (“the Act” for short) by the respondent authority upon the petitioner for the Assessment Year 2017–18.
(3) The facts, as narrated in Special Civil Application No.3736 of 2025, are as follows:
(4) The petitioner, by way of the present petition under Article 226 of the Constitution of India, seeks to challenge the impugned notice dated 09.02.2024 issued by the respondent authority under Section 153C of the Act for the Assessment
The court established that unreasonable delays in recording satisfaction notes under Section 153C of the Income Tax Act invalidate subsequent notices, emphasizing the imperative for timely procedural....
The court held that notices under Section 153C are valid despite delays in recording satisfaction, as the extended assessment period allows for ten years from the previous year of the search.
Section 153C notice invalid if issued 10 months after searched person's assessment completion, violating Supreme Court mandate for satisfaction 'immediately after' such completion; assessment quashed....
The validity of Section 153C proceedings requires the assessing officer's independent application of mind, making assessments void if merely based on copied satisfaction notes.
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