S.143(3): Assessment-Processing of return-Return pending for long period-Authority directed to process return-Expiry of statutory period-Return to be accepted at face value. [143(1)(a), 244A, Art. 226]

S.143(2): Assessment-Notice-Block assessment-Notice served-Notice issued within limitation but served beyond twelve months from the end of the month in which the return was filed-Service of notice is mandatory-Entire proceedings vitiated. [S. 132, 143(3), 158BC, 158BD, 260A]

S. 132B : Application of seized or requisitioned assets-Search and seizure-Application for release within prescribed time-Assessing Officer not at liberty to retain beyond 120 days awaiting crystallization of assessment demand-Order dismissing application quashed-Respondents directed to release seized assets.[S. 132, Art. 226]

S. 132B : Application of seized or requisitioned assets-Jewellery seized from assessee’s employees was requisitioned under section 132A-Stock in trade-Rejection of application by an Assessing Officer not having jurisdiction over assessee or seized assets was invalid; impugned order was to be set aside and matter remanded to concerned jurisdictional officer holding charge over assessee to decide application afresh. [S. 132, 132A, Art. 226]

S. 132B : Application of seized or requisitioned assets-Search and Seizure-Delay of release of seized jewellery solely for unexplained administrative reasons attributable to the Income Tax Dept cannot prejudice the Assessee by requiring them to give a bank guarantee for subsequent increase in market value; seized jewellery was hence liable to be released subject to affidavits of ownership and no objection-CBDT Circular dated 16-10-2023.[S.119, 132]

S. 127: Power to transfer cases-Coordinated investigation-Transfer from Alwar to Faridabad after show cause notice and reasons-Transfer valid. [Art. 226)

S. 124: Jurisdiction of Assessing Officer-The jurisdictional Assessing Officer is justified in processing the return of income filed by the assessee based on his PAN database residential address. The assessee cannot challenge the jurisdiction of the AO before the Tribunal in view of the limitation period prescribed under section 124(3)(a)-Assessee did not update current address in PAN database, and notices for scrutiny were issued and served at PAN address; said service was valid and constituted proper service. [S. 124(3)(a), 143(2)]

S. 119: Central Board of Direct Taxes-Circular-Return of income-Condonation of delay-Successive resignation of employees handling accounts and income tax-related compliances causing delay in filing return of income constituted a reasonable cause-The authorities should adopt a liberal approach and condone the delay considering genuine hardships and the plight of the assessee. [S.139, Art.226].

S. 80M: Inter-corporate dividend-Shares held as stock-in-trade-Commercial business expenses cannot be deducted a second time on an estimated basis under the head of other sources to reduce statutory deductions. [S. 14A, 115BBB, 260A]

S. 80IA: Industrial undertakings-Enterprises engaged in infrastructure development-Transfer pricing-Captive power plant supplying electricity to non-eligible manufacturing units-Internal transfer pricing must be benchmarked against the landed cost of electricity supplied to consumers by the State Electricity Board-Benchmarked transaction using internal CUP method adopting average annual landed cost of electricity paid by its manufacturing units to State Electricity Boards (SEBs), since CPPs were established for captive use and not for sale to SEBs, internal CUP was the most appropriate method for determining ALP. [S. 80IA(8), 92BA, 92C, 92F(ii); R. 10B(1)(a)]