Agrawal Distilleries Pvt. Ltd. Through Authorised Signatory Jaivinder Singh Bhatia vs. Assistant Commissioner Of Income Tax

IN THE HIGH COURT OF MADHYA PRADESH AT INDORE BEFORE HON'BLE SHRI JUSTICE VIVEK RUSIA & HON'BLE SHRI JUSTICE GAJENDRA SINGH ON THE 27th OF FEBRUARY, 2025 WRIT PETITION No. 3252 of 2025 AGRAWAL DISTILLERIES PVT. LTD. THROUGH AUTHORISED SIGNATORY JAIVINDER SINGH BHATIA Versus ASSISTANT COMMISSIONER OF INCOME TAX AND OTHERS Appearance: Shri Priyvrat Singh Chouhan - Advocate for the petitioner. Shri Harsh Parashar - Advocate for the respondents. ORDER Per: Justice Vivek Rusia The petitioner has filed this present petition under Article 226 of the Constitution of India challenging the validity of notices dated 29.12.2023 issued by the respondent No.1-Assistant Commissioner of Income Tax, Indore under Section 153C of the Income Tax Act, 1961 for the Assessment Years 2018-19 to 2020-21. After service of the aforesaid notices, petitioner raised an objection against the limitation of the proceedings under Section 153C of the Income Tax Act which came to be rejected by the Assessing Officer vide order dated 04.12.2024. Hence, the petitioner has filed this present petition. 2. Facts of the case, in a nutshell, are that a search and seizure operation under Section 132 of the Income Tax Act was conducted in the premises of Mr. Lalit Kumar Challani, Mr. Praveen Kakkar and R.K.Miglani Group on 07.04.2019. In the said search, various documents and digital data related to the 1 WP-3252-2025 NEUTRAL CITATION NO. 2025:MPHC-IND:5245 Signed by: SREEVIDYA Signing time: 01-03- 2025 10:20:32 Signature Not Verified

present petitioner came to the notice of search party. Accordingly a satisfaction note as required under the provision Section 153C of the Income Tax Act was prepared by the Assessing Officer along with forwarding letter dated 22.08.2023 by the DCIT, Central Circle Mumbai and communicated to the Assessing Officer of the petitioner. The petitioner vide letter dated 23.10.2024 filed an objection that the limitation for initiation of proceeding under Section 153C of the Income Tax Act has lapsed in view of the decision taken by the Apex Court in case of Commissioner of Income Tax - III vs. M/s Calcutta Knitwear, Luldhiana reported in (2014) 6 SCC 444. 3. Learned counsel for the petitioner submits that after the judgment passed by the Apex Court in case Calcutta Knitwear (supra), CBDT has issued a circular dated 31.12.2015 directing all concerned not to press or withdraw the recording of satisfaction note under Section 158BD/153C of the Income Tax Act if it does not meet the guidelines laid down by the Apex Court. Learned counsel for the petitioner submits that in this case also there is a delay in communicating the information to the Assessing Officer of the petitioner. Hence, in the light of judgment passed by the Apex Court in case of Calcutta Knitwear (supra) and the CBDT circular dated 31.12.2015, the proceedings are liable to be dropped. 4. Shri Harsh Parashar, learned counsel appearing for the respondents submits that the issue raised by the petitioner in the present case has already been answered by this Court in Writ Petition No. 37114 of 2024 (Shri Anand Kumar Kedia vs. Assistant Commissioner of Income Tax & Ors. & connected cases) and dismissed vide order dated 17.12.2024, therefore, this petition is also liable to be dismissed. Learned counsel for the respondent further submits that one of the writ has petitioner approached the Apex Court by way of SLP in which notice has been issued but liberty has been granted to the petitioner to raise the issue of limitation 2 WP-3252-2025 NEUTRAL CITATION NO. 2025:MPHC-IND:5245 Signed by: SREEVIDYA Signing time: 01-03- 2025 10:20:32 Signature Not Verified

(VIVEK RUSIA) JUDGE (GAJENDRA SINGH) JUDGE before the Assessing Officer and if the Assessing Officer comes to the conclusion that the proceedings are time barred, then there would be no question to go for further proceeding under Section 142 or 143 of the Income Tax Act. Heard learned counsel for the parties. 5. In the present case, the petitioner has already raised an objection against initiation of proceedings under Section 153C of the Income Tax Act before the Assessing Officer which has been negated vide order dated 04.12.2024. Now, the notice under Section 142(1) and 143(2) of the Income Tax Act have been issued to the petitioner. So far as the Assessment Years 2018-19 to 2020-21 are concerned, there is no delay for issuance of notice under Section 153C, 142(1) and 143(2). The petitioner has started participating in the proceeding under Section 142 / 143 of the Income Tax Act before the Assessing Officer. Petitioner has already filed reply to these notices before the Assessing Officer. Now the validity of the proceeding under Section 153C of the Income Tax Act cannot be challenged. The Apex Court has entertained the SLPs in those cases where enquiry has been initiated in respect of Assessment Year prior to six years. As regards the issue of delay in preparation of satisfactory note and communication to the Assessing Officer of a third person is concerned, the same has been decided by this Division Bench in Writ Petition No. 37114 of 2024 . Hence, no case for interference is made out. 6. In view of the above, the writ petition stands dismissed. vidya 3 WP-3252-2025 NEUTRAL CITATION NO. 2025:MPHC-IND:5245 Signed by: SREEVIDYA Signing time: 01-03- 2025 10:20:32 Signature Not Verified