IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/SPECIAL CIVIL APPLICATION NO. 9109 of 2022 FOR APPROVAL AND SIGNATURE:

HONOURABLE MR. JUSTICE A.S. SUPEHIA and HONOURABLE MR. JUSTICE PRANAV TRIVEDI ==========================================================

Approved for Reporting Yes No ✔

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POPULAR DEVELOPERS Versus ASSISTANT COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE 1(3), AHMEDABAD ==========================================================

Appearance:

MS SHRUNJAL T SHAH(10617) for the Petitioner(s) No. 1 MR.VARUN K.PATEL(3802) for the Respondent(s) No. 1 ==========================================================

CORAM:HONOURABLE MR. JUSTICE A.S. SUPEHIA and HONOURABLE MR. JUSTICE PRANAV TRIVEDI Date : 02/02/2026

ORAL JUDGMENT

(PER : HONOURABLE MR. JUSTICE A.S. SUPEHIA)

1. In the present writ petition, the petitioner has prayed for quashing and setting aside the notice dated 11.03.2022 issued under Section 153A of the Income-tax Act, 1961 (for short “the Act”) by the respondent – Department seeking to reopen the income-tax assessment of the petitioner for the Assessment Year 2011-12. Further, the petitioner also challenges the order under Section 153A read with Section

143(3) of the Act dated 31.03.2022.

2 The brief facts giving rise to the filing of the writ petition are as under:

2.1 The petitioner is a partnership firm carrying on real estate business. The petitioner filed the return of income for the year under consideration on 29.07.2011 declaring total income of Rs.61,719/-.

2.2 The respondent issued a notice dated 11.03.2022 under Section 153A of the Act for the year under consideration stating therein that a search was initiated under Section 132 of the Act on 08.10.2020 in the case of the petitioner.

2.3 In response to the notice under Section 153A of the Act, the petitioner filed the return of income on 25.03.2022 declaring total income of Rs.64,260/- Thereafter, notices under Section 142(1) of the Act were issued on 12.03.2022 and 20.03.2022 against which the petitioner filed various details and documents. However, on 31.03.2022, impugned order was passed making an addition of Rs.8,65,02,100/-.

3. Learned advocate Ms. Shrunjal Shah appearing for the petitioner, at the outset, has submitted that the impugned notice is barred by limitation and runs contrary to the provisions of Section 153A(1)(b) read with Explanation 1 to Section 153A of the Act. Ms. Shah, learned advocate, has advanced the following submissions :

3.1 Relying upon Sections 153A and 153C of the Act, he would submit that notices under Sections 153A / 153C of the Act can be issued for a period of “ten assessment years” immediately preceding the assessment year relevant to the previous year in which search is carried out and for the “relevant assessment years”, subject to fulfillment of certain conditions.

3.2 It is submitted that the “relevant assessment year” means an assessment year preceding the assessment year relevant to the previous year in which search is carried out or requisition is made, which falls beyond six assessment years but not later than ten assessment years from the “end of the assessment year relevant to the previous year in which search is conducted”.

4. It is submitted that in the instant case, the search action was carried out in the case of the third party on 08.10.2020, i.e. during the Financial Year 2020-21, and hence the relevant assessment year to the previous year in which the search was undertaken under Section 132 of the Act is Assessment Year 2021-22. It is further submitted that the notice under Section 153A of the Act for the Assessment Year 2011-12 would be time-barred, as the period of ten years would end at Assessment Year 2012-13, since the Assessment Year 2021-22 will become the first assessment year as per the provisions of Sections 153A - 153C of the Act.

4.1 In support of his submissions, learned Senior Advocate Mr. Hemani has placed reliance on the judgment of the Delhi High Co