Held, that no search had been initiated in the case of the assessee. There was no allegation that any incriminating material belonging to the assessee was obtained in the course of the search. By order dated January 26, 2021, the designated authority, passed an order in form 3 under section 5(1) of the 2020 Act read with rule 4 of the 2020 Rules, determining the tax payable by the assessee to be Rs. 2,57,67,714 being 125 per cent. of the disputed tax as against Rs. 2,02,69,581 being 100 per cent. of the disputed tax declared by the assessee. The order was not valid. Circular No 21 of 2020 (2020) 429 ITR 1 ( St). ( AY. 2015-16)
Bhupendra Harilal Mehta v. PCIT (2021)435 ITR 220/ 201 DTR 89/ 320 CTR 483 (Bom) (HC)
The Direct Tax Vivad Se Vishwas Act, 2020.
S.3: Amount payable by declarant – Search cases – Enhanced rate of tax – Assessment – Income of any other person – No evidence that assessee was involved in alleged bogus transaction – Enhanced rate of tax could not be levied . [ S.4,5 ]