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2024 Supreme(Mad) 1850
IN THE HIGH COURT OF JUDICATURE AT MADRAS
SENTHILKUMAR RAMAMOORTHY, J.
Smt. Pavithra Sugichandran - Petitioner
Versus
Office of the Deputy Commissioner of Income Tax, Central Circle 1 (4), Chennai and Ors. - Respondents
W.P.Nos.18605, 18610, 18619, 18620, 18623, & 18627 of 2023 & WMP Nos.17843, 17844, 17849, 17857, 17860, 17861, 17863, 17868, and 17869 of 2023
Decided On : 28-10-2024
For the Petitioner: Mr. Ravi Kannan, Mr. Varun Ranganathan.
For the Respondents: Mr. A.P. Srinivas, Senior Standing Counsel & A.N.R. Jeyapratap, Junior Standing Counsel.
The court ruled that the time limit for handing over seized materials is mandatory but does not invalidate subsequent assessments if not adhered to, provided assessments are completed within the permissible time frame.
Headnote:(A) Income Tax Act, 1961 - Sections 132(9A), 153A, 153B, 153C - Writ petitions challenging assessment orders for multiple assessment years based on seized materials - The court held that the time limit for handing over seized materials is mandatory but does not invalidate subsequent assessments if not adhered to - The assessment orders were issued within the permissible time frame as per the provisions of the Act. (Paras 22-39)
(B) Limitation - The court clarified that the time limit for assessment under section 153C is 12 months from the end of the financial year in which seized materials were handed over, which was adhered to in this case. (Paras 25-26)
(C) Jurisdiction - The court emphasized that the jurisdiction of the assessing officer under section 153C is confined to incriminating materials found during the search, and satisfaction notes must indicate how such materials relate to the assessment years in question. (Paras 10-11)
(D) Transfer of Assessment - The court ruled that the transfer of assessment was valid as the petitioner did not raise objections during the notice period. (Paras 36-37) (E) Unexplained Investments - The court upheld the invocation of section 69 for unexplained investments in bank accounts, affirming the applicability of section 115BBE. (Paras 38-39)
ORDER :
(Senthilkumar Ramamoorthy, J.)
(Prayer in W.P.No.18605 of 2023: Petition filed under Article 226 of the Constitution of India seeking issuance of a writ of certiorari calling for the records pertaining to the assessment order in PAN:CNPPS5755N having DIN and Notice No.ITBA/AST/S/153C/2022-23/1051722390(1) dated 31.03.2023 for Asst. Year 2015-16 issued by the respondents and quash the same as illegal.
Prayer in W.P.No.18610 of 2023: Petition filed under Article 226 of the Constitution of India seeking issuance of a writ of certiorari calling for the records pertaining to the assessment order in PAN:CNPPS5755N having DIN and Notice No.ITBA/AST/M/153C/10517246521(1) dated 30.03.2023 for Asst. Year 2020-21 issued by the respondents and quash the same as illegal.
Prayer in W.P.No.18619 of 2023: Petition filed under Article 226 of the Constitution of India seeking issuance of a writ of certiorari calling for the records pertaining to the assessment order in PAN:CNPPS5755N having DIN and Notice No.ITBA/AST/S/153C/2022-23/1051724473(1)) dated 30.03.2023 for Asst. Year 2018-19 issued by the respondents and quash the same as illegal.
Prayer in W.P.No.18620 of 2023: Petition filed under Article 226 of the Constitution of India seeking issuance of a writ of certiorari calling for the records pertaining to the assessment order in PAN:CNPPS5755N having DIN and Notice No.ITBA/AST/S/153C/2022-23/1051722707(1) dated 31.03.2023 for Asst. Year 2016-17 issued by the respondents and quash the same as illegal.
Prayer in W.P.No.18623 of 2023: Petition filed under Article 226 of the Constitution of India seeking issuance of a writ of certiorari calling for the records pertaining to the assessment order in PAN:CNPPS5755N having DIN and Notice No.ITBA/AST/M/153C/2022-23/1051725066(1) dated 30.03.2023 for Asst. Year 2019-20 issued by the respondents and quash the same as illegal.
Prayer in W.P.No.18627 of 2023: Petition filed under Article 226 of the Constitution of India seeking issuance of a writ of certiorari calling for the records pertaining to the assessment order in PAN:CNPPS5755N having DIN and Notice No.ITBA/AST/S/153C/2022-23/1051722701(1) dated 31.03.2023 for Asst. Year 2017-18 issued by the respondents and quash the same as illegal.)
Background
By these six writ petitions, the petitioner challenges assessment orders relating to assessment years 2015-16, 2016-17, 2017-18, 2018-19, 2019-20 and 2020-21, respectively. The petitioner's husband, Mr.Ram Prasath Reddy, was a director of a company called Gateway Office Parks Limited (GOPL). Based on a complaint by GOPL that the petitioner's husband had siphoned off substantial amounts from the company, a First Information Report was registered against the petitioner's husband on 23.11.2020.
2. Pursuant to a search and seizure operation relating to Mr. Ram Prasath Reddy, the seized materials, which are said to relate to the petitioner herein, were handed over to the jurisdictional assessing officer on 20.11.2021. Initially, pursuant to notices under section 153A of the Income-Tax Act, 1961 [the I-T Act], assessment orders in respect of assessment years 2018-19, 2019-20 and 2020-21 were issued to the petitioner. Upon challenge, those assessment orders were quashed by common order dated 23.02.2023 by granting liberty to the respondent therein to proceed afresh against the petitioner in accordance with law. Thereafter, satisfaction notes were recorded on 24.02.2023, and notices under Section 153C of the I-T Act were also issued on the same date. Pursuant thereto, the impugned assessment orders were issued after a hearing on 09.03.2023. While the income returned by the assessee for assessment years 2015-16, 2016-17 and 2017-18 was accepted, additions were made in assessment years 2018-19, 2019-20 and 2020-21 on the basis of unexplained credits in the bank accounts.
Counsel and their contentions
3. Oral arguments on behalf of the petitioner were advanced by Mr.Ravi Kannan, learned counsel; and on behalf of the
