S. 194A: Deduction at source-Interest other than interest on securities-Co-operative society-Constitutional validity-Deduction of tax at source-Provision making it obligatory for co-operative societies to deduct tax on payments of interest where total sales, gross receipts or turnover of assessee exceeds Rs. 50 crores-Provision valid-Interpretation of taxing statutes-Proviso-Statutory stipulation in the form of a proviso. Proviso introduced, bringing in conditions restricting operation of main provision. Permissible-hardships or inconvenience of the party subjected to law, by itself not a ground for judicial interference.[S.194A(3)(iii), Banking Regulation Act, 1949, S. 5(b), Art. 14, 226]

S. 172: Shipping business-Non-residents-Certificate issued by Inland Revenue Authority of Singapore stating that income derived from operation of ships in international traffic at Indian port would be governed by article 8 and not article 24 and was taxable in Singapore-Contents of certificate considered by court in earlier decision-Held, in absence of any other material on record to demonstrate veracity of certificate was doubtful Tribunal could not have restored matter to Assessing Officer merely on suspicion and doubts contrary to findings arrived at by this court in earlier decision-Assessment order passed consequent to remand quashed and set aside-DTAA-India-Singapore [S. 172(2),260A, Art, 8,24]

S. 153A: Assessment-Search-Acquisition of foreign assets-Disclosed in returns filed and reflected in books of account for relevant assessment year-Return filed under section 153A disclosing acquisition of assets before notice for penalty issued-There was no failure to disclose-No penalty warranted-No substantial question of law.[S. 260A]

S. 153A: Assessment-Search-Approval of prescribed authority-Approvals in 30 cases rushed through on same day Difficult to believe that Additional Commissioner considered all proposals and accompanying draft assessment orders within a few minutes or even a couple of hours-Approval need not resemble reasoned decision-But should reflect minimal application of mind-Absence of valid and prior approval vitiates assessment-Non-application of mind-Tribunal right in quashing assessments-Order of Tribunal affirmed-No substantial question of law. [S. 132,153D, 260A]

S. 153A: Assessment-Search-Recording of satisfaction note by Assessing Officer of person in respect of whom search conducted Mandatory-Settlement commission-Admission-In absence thereof, jurisdictional Assessing Officer of “other person” cannot assume jurisdiction solely on basis of material sent to him by Assessing Officer of searched person-Reassessment-Assessment of third person-Non obstante provisions-Assessing Officer cannot directly invoke sections 147 and 148 merely because numerous assessees’ names have been unearthed during search and whom it believes have evaded tax-Reassessment under general provisions permissible on basis of material collected post-search from any other independent source-Information regarding payment of cash received post-search on basis of admission before Settlement Commission Information sufficient to reopen the assessment-to trigger action under sections 147 and 148-Held, Department was justified in reopening assessment on information received subsequently-Assessment of third person-No satisfaction note recorded by Assessing Officer of entity subjected to search-Material merely supplied to jurisdictional Assessing Office of “other person”-Not sufficient-What cannot be done directly cannot be done indirectly-Circular No. 24 of 2015 dated 31-12-2015(2016) 380 ITR 32 (St). [S. 147, 148, 153C, 245C, 245D 260A]

S. 153: Assessment-Reassessment-Limitation-Order giving effect to direction of Tribunal-Limitation for assessment to be reckoned from that date-High Court holding assessment barred by limitation-SLP of revenue dismissed.[S.153(2A), Art. 136]

S. 148A: Reassessment-Conducting inquiry, providing opportunity before issue of notice-Limitation-Assessing Officer having two days to issue notice under section 148 after receiving reply filed by assessee-Assessing Officer having seven days to pass an order for issue of notice Period expired on 16-6-2022-Order passed under section 148A(d) beyond period of limitation-Notice issued beyond three years-Approval to be by Principal Chief Commissioner or Principal Director General or where there is no such authority, by Chief Commissioner or Director General-Notice issued with approval of Commissioner (E)-Issued without approval of authority specified under section Notice is set aside. [S. 148, 148A(b), 148A(d), 151(ii), Art. 226, Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Act, 2020.]

S. 148A : Reassessment-Conducting inquiry, providing opportunity before issue of notice-Assessing Officer must first make inquiry with regard to information available after obtaining sanction from competent authority and thereafter, issue initial notice under clause (b) of section 148A calling for explanation on basis of which to decide whether case fit for reopening-Assessing Officer had issued initial notice under clause (b) as if inquiry is to be conducted under clause (a)-Notice bad in law.[S 148, 148A(b),148A(d), Art. 226]

S. 148A: Reassessment-Conducting inquiry, providing opportunity before issue of notice-Search and seizure-Assessment of third person-Limitation-Order under section 148A(d) and proceedings pursuant to second notice issued under section 148 beyond period of limitation invalid and set aside.[S. 132, 147, 148, 148A(b),148A(d), 153C, Art. 226]

S. 148A: Reassessment-Conducting inquiry, providing opportunity before issue of notice-Faceless assessment-Jurisdictional officer-Inquiry by Assessing Officer and passing of order on prima facie conclusion that it is fit case for reopening-Not available in Scheme-Scheme is unambiguous and plain in language-If Scheme applied to new procedure for reassessment, it would amount to alteration by adding procedure not intended by Legislature Notices for reassessment issued by jurisdictional Assessing Officer and not faceless Assessing Officer-Valid. [S. 120, 124, 127, 130, 144B, 148, 148A, 151A Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Act, 2020-e-Assessment of Income Escaping Assessment Scheme, 2022-Notification No. 18 of 2022 dated 29-3-2022.]