VIRAL MAHESH JHAVERI S/O MAHESH RASIKLAL JHAVERI vs. THE INCOME TAX OFFICER

Facts

This judgment concerns multiple Special Civil Applications filed before the High Court of Gujarat at Ahmedabad. The petitioners are individuals and entities, including HN Safal Group, Barter Group, and Venus Group, challenging notices and assessment orders issued under Section 153C of the Income Tax Act, 1961. The revenue is represented by the Assistant Commissioner of Income Tax. The core of the dispute revolves around the jurisdiction of the Assessing Officer to issue notices under Section 153C, particularly concerning the determination of the relevant assessment years for initiating such proceedings. The petitions were filed in 2018, challenging actions taken by the revenue authorities.

Held

The High Court held that the six assessment years contemplated under Section 153A of the Income Tax Act, 1961, for proceedings initiated under Section 153C, are to be computed based on the assessment year relevant to the previous year in which the search or requisition was conducted. The trigger point for determining these six years is the assessment year immediately preceding the assessment year relevant to the previous year of the search. For HN Safal Group, where the search was on 4.9.2013, the relevant previous year was 2013-14, making the assessment year 2014-15. Thus, the six preceding assessment years were 2013-14 to 2008-09. For Barter Group and Venus Group, searches on 4.12.2014 and 13.3.2015 respectively, meant the relevant previous year was 2014-15, assessment year 2015-16, and the six preceding years were 2014-15 to 2009-10. Notices issued for assessment years beyond these six years were held to be without jurisdiction. The court did not delve into individual satisfaction notes or other issues raised in the petitions, focusing solely on the jurisdictional aspect.

Key Issues

1. Whether the six assessment years contemplated under Section 153A of the Income Tax Act, 1961, for proceedings initiated under Section 153C, are to be computed in relation to the assessment year in which the search was conducted or the assessment year in which the notice under Section 153C was issued? (Question of law) Assessee's Contention: While not explicitly argued in all petitions, some petitioners contended that the six years should be computed from the assessment year of the Section 153C notice. Revenue's Contention: The learned senior standing counsel for the respondent made submissions regarding the computation of these six years. The judgment does not detail the specific arguments of the revenue on this point beyond stating that submissions were made.