S. 143(1): Assessment – Intimation – Prior intimation of proposed adjustment – Assessee failing to establish non-receipt of prior intimation – Intimation not invalid.[ S.80C , 80D , 80TTB , 115BAC ]

Wealth-tax Act, 1957

S. 2(ea): Assets-Building under construction-Construction of the building was not completed on the relevant valuation date-Vacant urban land is an “asset” and liable to tax under section 2(ea) and not entitled to exemption-Order of Tribunal set aside. [S.17(1)]

Income Declaration Scheme, 2016.-Finance Act, 2016(2016) 384 ITR 87 (St)
S. 183: Declaration of undisclosed income-Self-assessment tax paid-Part payment was made prior to commencement of Scheme-Payment made prior to 1-6-2016 relatable to disclosed income required to be adjusted towards tax, surcharge and penalty under Scheme. Full payment stood made. Direction to issue Form 4 under 2016 Scheme Income-tax Act.[S.184, 185, Art. 226]

S. 271AA: Penalty-Failure to keep and maintain books of accounts-Documents-International transaction-Transfer pricing-Principle of natural justice-Assessing Officer who heard in video conferencing to pass assessment or penalty order-Structures-Directions issued to Central Board of Direct Taxes to issue necessary instructions to all Assessment and Penalty Units-Matter remanded to Assessment or Penalty Unit to afford fresh opportunity of hearing and thereafter pass fresh order by same Assessing Officer hearing assessee.[S.92D, 144B(3) 274(1), Art. 226]

S.270AA: Immunity from imposition of penalty,etc-Under-reporting and misreporting of income-Restricted to cases of under-reporting of income-Does not apply to cases of “under-reporting of income as consequence of misreporting of income-Maintained information and documents as prescribed under section 92D, declared international transactions under Chapter X and disclosed all material facts relating thereto, addition arising from determination of arm’s length price fell within exclusion under section 270A(6)(d) and rejection of Form 68 application seeking immunity under section 270AA was unsustainable. [S.92CA(3), 92D, 270A(6))(d), (8), (9), Art. 226]

S. 263: Commissioner-Revision of orders prejudicial to revenue-Disallowance of expenditure-Exempt income-Doctrine of merger-Order passed in reassessment proceedings had already merged-Judicial review-Existence of alternate remedy of statutory appeal not a bar to entertain petition-Revision order was quashed. [S. 14A, 142(1), 143(3), 147, 263, R. 8D, Art. 226]

S. 263: Commissioner-Revision of orders prejudicial to revenue-Sundry creditors-Assessment order was passed without making inquiries-Revision order affirmed-Time limit for completion of assessment stipulated under section 153 does not apply to any assessment, reassessment or recomputation which is made, inter alia, to give effect to any finding or direction contained in an order passed under section 263 [S. 152(6) 153(1), 153(2), 254(1), 260A]

S. 263: Commissioner-Revision of orders prejudicial to revenue-Demonetization-Cash deposit-Assessing Officer had not conducted verification of cash deposit made by assessee in bank account-Revision order was affirmed.[S.115BBE, Art. 226]

S. 245C: Settlement Commission-Settlement of cases-Procedure-Application-Search and seizure-True and full disclosure-Undisclosed income in jewellery business-Modus operandi of inflation of refinery loss-Full and true disclosure in application of manner in which undisclosed income derived-Rejection of application on ground of failure to truly and fully disclose-Dismissal of writ petition-On appeal division bench held that failure of competent authority to scrutinise in detail assessee’s application resulting in dismissal of writ petition Order in writ petition and order rejecting application for settlement of case set aside-Matter remanded to competent authority with directions to scrutinize application. [S. 69B, 115BBE, 132, 245C(1), 245D(4), 245HA, Art. 226]

S. 245C: Settlement Commission-Settlement of cases-Procedure-Application-Search and seizure-True and full disclosure-Consideration of application under section 245D(4) in its entirety and not piecemeal-Settlement Commission cannot change assessee’s declaration and treat income disclosed in one head as another head and impose tax-Rejection of application was affirmed. [S. 69B, 115BBE, 132, 245C(1), 245D(4), 245HA, Art. 226]