Court’s Decision
The Kerala High Court dismissed multiple writ appeals filed by the Union of India and the Income Tax Department as “not pressed,” after the Revenue conceded that the issue in the appeals had already been conclusively settled against it by an earlier Division Bench ruling in W.A. No. 515 of 2024. Specifically, the Court noted:
“It was conceded by the learned Standing Counsel for the Income Tax Department that in all these cases, the date of issuance of the notices under Section 153A/153C of the Income Tax Act, being dates prior to 31.03.2021, the issue agitated in these appeals stands covered against the Revenue by the judgment dated 08.11.2024 of a Division Bench of this Court in W.A. No. 515 of 2024.”
Accordingly, all the writ appeals were dismissed as not pressed.
Facts
The appeals were preferred by the Union of India, the Interim Board for Settlement, the Central Board of Direct Taxes, and respective Income Tax officers against the orders passed by the Single Bench in various writ petitions. These petitions involved assessees who had approached the High Court challenging actions of the Income Tax Department concerning notices issued under Sections 153A and 153C of the Income Tax Act, 1961.
All the impugned notices in these cases were issued prior to 31.03.2021, which became a pivotal fact during the hearing.
Issues
- Whether the issuance of notices under Sections 153A/153C prior to 31.03.2021 could be sustained in view of the High Court’s earlier judgment in W.A. No. 515 of 2024.
- Whether the Revenue could pursue appeals when the legal position was already settled by a Division Bench decision.
Petitioner’s (Revenue’s) Arguments
The Revenue initially sought to challenge the orders of the Single Bench but ultimately conceded during the hearing that:
- The dates of issuance of the impugned notices in these matters were all prior to 31.03.2021.
- The issues involved stood conclusively covered against the Revenue by the judgment of a Division Bench of the same Court in W.A. No. 515 of 2024 dated 08.11.2024.
- Consequently, the Revenue did not wish to press the present appeals.
Respondent’s Arguments
While detailed arguments from the respondents were not recorded in the judgment due to the Revenue conceding the matter, it is evident that:
- The respondents (assessees) had relied on the position settled in W.A. No. 515 of 2024, which declared such notices issued before 31.03.2021 as unsustainable under the prevailing law.
Analysis of the Law
Section 153A and 153C of the Income Tax Act deal with assessments in cases of search and requisition. Recent judicial scrutiny—including that in W.A. No. 515 of 2024—has placed temporal limitations on the sustainability of notices issued under these provisions.
The core issue involved interpretation of whether such notices issued prior to the cut-off date of 31.03.2021 could withstand legal scrutiny post changes in the statutory framework or judicial precedent.
Precedent Analysis
The Court relied entirely on its prior Division Bench judgment in W.A. No. 515 of 2024, which had already addressed and resolved the same legal issue. Though the reasoning of that case is not reproduced in the present order, it forms the binding precedent that led to the dismissal of all present appeals.
Court’s Reasoning
- Since the legal issue was already settled by a coordinate Bench, there was no need for further adjudication.
- The Revenue’s concession during the hearing was sufficient to dispose of the matter without addressing the merits.
- The High Court reiterated the principle of judicial discipline in respecting and following coordinate Bench decisions.
Conclusion
The Kerala High Court dismissed all the connected writ appeals filed by the Revenue on the ground that:
“The Revenue does not choose to pursue the above writ appeals.”
Thus, all the Writ Appeals (including W.A. No. 2052/2024, W.A. No. 153/2025, W.A. No. 399/2025, W.A. No. 400/2025, W.A. No. 398/2025, and W.A. No. 759/2025) were dismissed as not pressed.
Implications
- This judgment further solidifies the binding effect of W.A. No. 515 of 2024, making it the standard reference in similar matters involving Section 153A/153C notices issued before 31.03.2021.
- The Revenue’s position in ongoing or future appeals involving such notices is significantly weakened unless distinguishable facts or legal grounds exist.
- The ruling underscores the importance of judicial consistency and voluntary withdrawal when precedents are clearly against one’s position.
