Pack Plast -India- Private Limited v. Income Tax Officer Ward 19-3, Delhi and Anr.
Case brief
What is this about?
The Supreme Court analyzed the validity of search assessment notices under Sections 153A and 153C of the Income-tax Act, 1961. It held that limitation bars do not create a vested right to finality and do not prevent reopening under these sections if initiated within the statutory post-search periods. The Court interpreted the 50 lakh threshold under Section 153A as cumulative across assessment years and clarified that the block period for non-searched persons starts from the date documents are received, not the search date. Notices beyond the ten-year block were quashed, while others within the permissible block were upheld pending restoration of appropriate assessments.
What did the court decide?
Writ petitions challenging notices for assessment years 2010-11, 2011-12, 2012-13, and 2013-14 were allowed and notices quashed. For the petition concerning the 2016-17 assessment year, the notice was quashed but the Assessing Officer was granted liberty to examine if the escaped income likely amounts to INR 50 lakhs or more cumulatively. If satisfied, the Officer may commence fresh proceedings. T