This Digest of case laws is prepared by KSA Legal and AIFTP from judgements reported in BCAJ, CTR, DTR, ITD, ITR, ITR (Trib), Chamber's Journal, SOT, Taxman, TTJ, BCAJ, ACAJ, www.itatonline.org and other journals
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S. 153C : Assessment-Income of any other person-Search-Six Assessment years to be considered with reference to date of handing over of assets or documents to AO of Assessee-AO initiating proceedings only for AY. 2006-07 to 2011-12,instead of AYs 2008-09 to 2013-14-Assessment order is not valid.
Bina Fashions N Foods (P.) Ltd. v. Dy. CIT (2020) 77 ITR 68 (SN) (Delhi)(Trib.)
S. 153C : Assessment-Income of any other person-Search-Addition only on basis of Pen Drive seized from third party-Department failing to establish any connection either business or personal of assessee with third party-No efforts to summon third party-No Incriminating material found during search-Addition is not valid. [S. 68, 132]
Dy.CIT v. Mahesh Bansal (2020) 77 ITR 205 / 190 DTR 438/204 TTJ 773 (Indore)(Trib.)
S. 153A : Assessment–Search-No incriminating material found-Concluded assessments for year earlier to year of search not permissible-Binding precedent-Pendency of Special leave or dismissal of special leave cannot be ground for not following the Delhi High Court decision. [s. 132]
Dy.CIT v. Aryan Future Trading P. Ltd. (2020) 77 ITR 35 (SN) (Delhi)(Trib.)
S. 153A : Assessment–Search-No incriminating material found-Addition is held to be not justified-Noting and jotting on loose sheet of papers–Addition is held to be not valid. [S. 69C]
Param Dairy Ltd. v. ACIT (2020) 77 ITR 567 (Delhi)(Trib.)
S. 151 : Reassessment-Sanction for issue of notice-Approval granted in mechanical manner and without application of mind-Reopening is not valid. [S. 147, 148]
APC Air Systems P. Ltd. v. ITO (2020)77 ITR 21 (SN) (Delhi)(Trib.)
S. 148 : Reassessment–Notice–Reply stating that original return filed should be treated as return filed in repose to notice u/s. 148-Postal receipt is filed–Neither notice u/s. 143(2) is issued nor assessment completed u/s. 144 of the Act nor interest charged u/s. 234A–Reassessment is held to be not valid. [S. 139, 143(2), 144, 147, 234A]
Flovel Energy Pvt. Ltd. v. ACIT (2020) 77 ITR 441 (SN) (Delhi)(Trib.)
S. 147 : Reassessment-Reason to be believe-Securities premium account–Merely on the basis of information received by another AO based on appraisal report of A group-Reassessment cannot be made. [S. 148]
Budhiya Agencies P. Ltd. v. Dy.CIT (2020) 77 ITR 72 (SN) (Kol.) (Trib.)
S. 147 : Reassessment–With in four years-Depreciation at higher rate-Not examining the issue at the time of original assessment– Reassessment is held to be valid. [S. 32, 143(1)]
Arihant Constructions v. ACIT (2020)77 ITR 171 (Vishakha)(Trib.)
S. 147 : Reassessment–With in four years-Search and seizure– Alleged cash loans–Parties denying cash loans-Reassessment is held to be nor valid–Correct legal course could have been action u/s. 153C and not reassessment–Addition is deleted. [S. 132, 153A, 153C, 148]
Adarsh Agrawal v. ITO (2020) 77 ITR 52 (SN) (Delhi)(Trib.)