S. 153A : Assessment-Search-Bogus long-term capital gains-Additions based solely on Investigation Wing report and untested third-party statements-No incriminating material-Addition deleted-Estimated commission on alleged accommodation entries-No evidence linking assessee with entire stock exchange transactions-Addition deleted-Alleged cash handling based on statement of office boy-No corroborative evidence or cash trail-Addition deleted. [S. 45]
Dy. CIT v. Manoj Naginlal Jain (2025) 127 ITR 154 / 180 taxmann.com 309 (Mum.)(Trib.)
Digest of case laws
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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
Click here to download the pdf versions of the Digest of case laws S. 153A : Assessment-Search-No incriminating material relating to assessment year-Assessment under section 153A invalid.[S. 132]
Dy. CIT v. Bodal Chemicals Ltd. (2025) 127 ITR 194 / 177 taxmann.com 448 (Ahd.)(Trib.)S. 151 : Reassessment-Sanction for issue of notice-Approval under section 151 recording “Yes, I am satisfied and may be reopened”-Mechanical approval-Without independent satisfaction-Reassessment invalid.[S. 147, 148]
Rungta Irrigation Ltd. v. Asst. CIT (2025) 127 ITR 169 (Kol.)(Trib.)S. 149 : Reassessment-Time limit for notice-Limitation-Time spent in proceedings under section 148A to be excluded-Reassessment order passed beyond limitation-Invalid.[S.148, 148A(b)]
Varun Goel v. Dy. CIT (2025) 127 ITR 272 (Delhi)(Trib.)S. 148A : Reassessment-Conducting inquiry, providing opportunity before issue of notice-Search cases-Approval granted without recording finding of escapement of income-Notice under section 148 invalid. [S. 132, 147, 148, 148A(b), 151]
Rosha Alloys P. Ltd. v. Dy. CIT (2025) 127 ITR 76 / 175 taxmann.com 622 (Chd.)(Trib.)S. 147 : Reassessment-Amalgamated company-Notice issued in the name of non-existent entity despite knowledge of amalgamation-Reassessment void ab initio.[S. 148]
Dy. CIT v. KKalpana Industries India Ltd. (2025) 127 ITR 24 (Kol.)(Trib.)S. 147 : Reassessment-Notice after four years-Failure to disclose material facts not alleged-Reassessment invalid-Borrowed satisfaction-Reasons recorded based solely on Investigation Wing report-Reopening invalid.[S.68, 143(3), 148]
BNA Commerce (P.) Ltd. v. ITO (2025) 127 ITR 335 (Kol.)(Trib.)S. 145A : Method of accounting in certain cases-Unutilised CENVAT credit-Exclusive method of accounting consistently followed-No adjustment called for.[S. 145]
Dy. CIT v. Bodal Chemicals Ltd. (2025) 127 ITR 194 / 177 taxmann.com 448 (Ahd.)(Trib.)S. 145 : Method of accounting Rejection of books of account-Failure to produce records due to factory seizure-Estimation of gross profit-Reduction by Commissioner (Appeals) upheld-Assessing Officer doubting only trading results-No defect found in manufacturing segment-Overall rejection of books unjustified.[S. 145(3)]
R. H. Agro Overseas P. Ltd. v. Asst. CIT (2025) 127 ITR 37 / 180 taxmann.com 92 (Delhi)(Trib.)S. 143(3): Assessment-Bogus purchases-Purchases supported by invoices, stock records and banking evidence-Sales accepted-Addition deleted-Delay of 136 days in filing cross-objection-Bona fide belief-Delay condoned. [S. 145(3), 254(1)]
Rosha Alloys P. Ltd. v. Dy. CIT (2025) 127 ITR 76 / 175 taxmann.com 622 (Chd.)(Trib.)