Category: Income-Tax Act

Archive for the ‘Income-Tax Act’ Category


Ronak Processors (P) Ltd v. ITO (2021) 209 TTJ 641 / 197 DTR 377 (Jodhpur)(Trib.)

S. 153C : Assessment-Income of any other person-Search-Documents found in the premises of third party-Addition on the basis of such documents are held to be not valid [S. 132(4A), 292C]

Hitesh Ashok Vaswani & Ors. v. Dy. CIT (2021) 214 TTJ 410 (Ahd.)(Trib.)

S. 153C : Assessment-Income of any other person-Search-Search on 13th March, 2015-Documents prior to Ist June, 2015-Not belongs to the assessee-Allegation of information belongs to assessee-All assessment orders are quashed-Assessment u/s 153A can be made only on the basis of material found during the course of search carried out against the assesee-Assessment-Limitation-Time limit for passing order on 31st March, 2017-Order passed in December 2017 is held to be barred by limitation-Reassessment-Materials discovered during search proceedings for period beyond six preceding assessment years can be used for invoking the provisions of section 147 of the Act-Recorded reasons do not match with actual addition-No addition can be made in the reassessment proceedings-Addition cannot be made-Interest free loans given to partners-Not mandatory to charge interest-Addition cannot be made on notional basis. [S. 5, 132, 132(3), 147, 148, 153A, 153B]

Dy. CIT v. HTL Ltd. (2021) 214 TTJ 810 / 63 CCH 502/(2022) 216 DTR 209 (Delh)(Trib.)

S. 153C : Assessment-Income of any other person-Search-No incriminating materials-Addition is not justified-Obsolete provision written off-Allowable as deduction-Provision for liquidated damages-Allowable as deduction. [S. 37(1), 143(3)]

Rahul Seth v. ACIT (2021) 91 ITR 34 (SN) (Delhi)(Trib.)

S. 153A : Assessment-Search or requisition-Unabated assessment No material relating to addition found in search-Addition not sustainable. [S. 132, 143(3)]

Naresh Kumar Jain v. Dy. CIT (2021) 91 ITR 682 (Luck.)(Trib.) Navin Jain v. Dy. CIT (2021) 91 ITR 682 (Luck.)(Trib.) Neetu Jain (Smt) v. Dy. CIT (2021)91 ITR 682 (Luck.)(Trib.) Shrimati Jain v. Dy. CIT (2021) 91 ITR 682 (Luck.)(Trib.)

S. 153A : Assessment-Search or requisition-Sanction-Assessing Officer passing draft Assessment order and on same day Additional Commissioner granting approval under section 153D for various assessees-Final Assessment Order passed By Assessing Officer on same day-impossible for a person to apply his mind on all cases individually in a single day-Approval illegal and non est-Order is quashed. [S. 153D]

N. R. Agarwal Industries Ltd. v. ACIT (2021)91 ITR 503 (Surat) (Trib.)

S. 153A : Assessment-Search or requisition-Unabated assessment-No addition can be made in absence of any incriminating material found during the course of search-Assessment not valid. [S. 132]

DCIT v. Ngenox Technologies Pvt. Ltd. (2021) 213 TTJ 748 / 205 DTR 193 (Delhi)(Trib.)

S. 153A : Assessment-Search or requisition-Carry forward of losses-Late filing of return-Not justified in denying the carry forward of the loss on account of late filing of the return u/s.153A, when the original return was filed u/s 139(1) of the Act. [S. 70, 80, 132, 139(1), 139(5)]

Cascade Holdings Pvt. Ltd. v. DCIT (2021) 61 CCH 470 / 213 TTJ 491 (Mum.)(Trib.)

S. 153A : Assessment-Search or requisition-Addition based on rough notings unsustainable in absence of corroborating or substantive evidence-Income offered by way of composite disclosure cannot be added to the income of the assessee. [S. 132(4), 153C]

Dy. CIT v. Frost Falcon Distilleries Ltd. (2021) 214 TTJ 388 / 207 DTR 1 (Delhi)(Trib.)

S. 153A : Assessment-Search or requisition-No incriminating material was found-Merely on the basis of statement dummy director addition of share capital as cash credit was held to be not justified. [S. 68, 132(4)]

Satya Narayan Bairwa v. ITO (2021) 91 ITR 370 (Jaipur)(Trib.)

S. 151 : Reassessment-Sanction for issue of notice-After the expiry of four years-Sanction obtained from Additional Commissioner instead of Principal Commissioner or Chief Commissioner or Commissioner-Notice not valid. [S. 147, 148]