S. 153A : Assessment–Search-Addition to income on account of receipt of share application money and premium-AO not referring to any seized material or other material found during course of search-Addition is unsustainable.

S. 153 : Assessment-Limitation-Capital gains-Reference to valuation officer–No extension of time for assessment as in case of reference under S. 142A-Assessment order to be passed on or before 31.03.2016 whereas the same was passed on 19.05.2016-Order barred by limitation. [S. 45, 50C, 55A, 142A]

S. 151 : Reassessment-Sanction for issue of notice-Approving authorities giving approval in mechanical manner-Reassessment invalid-Department failing to bring on record any evidence of income earned by assessee-Entire amount of doubtful transactions added as assessee’s additional income-Impermissible. [S. 147, 148]

S. 147 : Reassessment–Information obtained from the sales tax department–No independent enquiry or application of mind-Reassessment invalid-Assessment–Notice-Issuance of notice u/s. 143(2) is mandatory – Failure renders the reassessment invalid [S. 69C, 143(2), 148]

S. 147 : Reassessment-Income from other sources–Reassessment proceedings initiated on suspicion-when nothing incriminating was found to suggest that anything over and above Re. 1 per share was paid by assessee-Reassessment is held to be invalid. [S.56(2)(viia), 148]

S. 147 : Reassessment–Reassessment proceedings initiated without any application of mind and examination of information received from investigation wing amounts to borrowed satisfaction–Notice is quashed. [S. 148]

S. 147 : Reassessment–Legal representatives-Notice issued in name of deceased assessee-No subsequent notice issued on legal heirs of deceased assessee-Reassessment is not valid. [S. 148, 159]

S. 147 : Reassessment-Jurisdiction of authorities-No specific order passed by principal CIT under section 120(4)(B) authorising Joint Commissioner to act as an AO-Reassessment Order passed by Joint Commissioner liable to be quashed. [S. 2(7A), 120(4)(b), 148]

S. 147 : Reassessment-After the expiry of four years-AO should record ‘reason to believe’ that certain income chargeable to tax has escaped assessment–This belief should be based on independent enquires/application of mind and not on borrowed satisfaction ie basis information from Investigation Wing- Sanction-Sanction granted by the CIT under S. 151 by simply writing “Yes, I am satisfied” is also invalid. [S. 147, 148]

S. 147 : Reassessment-After the expiry of four years–No scrutiny assessment–Reopening solely based on information from Investigation Wing–No independent application of mind– Reassessment is held to be invalid. [S. 148]