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. 153A : Assessment-Search-Ledge account-Not incriminating material-Unabated and concluded assessment u/s 143(1)-Failure to deduct tax at source-No disallowance can be made. [S.10 (26), 40(a)(ia), 132, 143(1)]
PCIT v. Shyama Power India Ltd. (2023) 294 Taxman 652 /(2024)461 ITR 350 (Gau.)(HC)
S. 153A : Assessment-Search-Alleged bogus long-term capital gains-No incriminating material-assessments cannot be substantiated. [S.45, 68, 69C, 132]
PCIT v. Rajesh Mohanbhai Patel (2023) 294 Taxman 279 (Guj)(HC)
S. 153A : Assessment-Search-No incriminating material was found-Share capital-Investor companies had ample funds to make investment in share capital-Opportunity of cross examination was not provided-Deletion of the addition was affirmed. [S. 68, 260A]
PCIT v. JPM Tools Ltd. (2023) 154 taxmann.com 44 (Delhi)(HC) Editorial : SLP of Revenue is dismissed, PCIT v. Jay Ace Technologies Ltd. (2023) 294 Taxman 602 (SC)
S. 153A : Assessment-Search or requisition-Total income-Completed Assessments remain unabated -No addition permissible for such years in absence of incriminating material having been found in search – Completed or unabated assessments can be reopened under Section 147 or 148 of the Act-Miscellaneous application of Revenue is dismissed. [2(45), 131, 132, 132A, 143(1), 143(3), 147, 148, 150(2), 285BA]
PCIT v. Abhisar Buildwell (P.) Ltd. (2023) 294 Taxman 70/ 332 CTR 729/ 225 DTR 497 (SC) Editorial : Refer, PCIT v. Abhisar Buildwell P. Ltd. (2023)454 ITR 212/ 293 Taxman 141/ 332 CTR 385/ 225 DTR 105 (SC)
S. 153A : Assessment-Search-No incriminating material-Addition cannot be made in respect of unabated assessments-SLP of Revenue is dismissed. [S. 132 Art. 136]
PCIT v. Saroj Sudhir Kothari (2023) 455 ITR 379/294 Taxman 598 (SC) Editorial : PCIT v. Saroj Sudhir Kothari (2023) 154 taxmann.com 359 (Bom)(HC)
S. 153A : Assessment-Search-No incriminating material was found-Share capital-Investor companies had ample funds to make investment in share capital-Opportunity of cross examination was not provided-SLP of Revenue is dismissed. [S. 68, Art. 136]
PCIT v. Jay Ace Technologies Ltd. (2023) 294 Taxman 602 (SC) Editorial : PCIT v. JPM Tools Ltd (2023) 154 taxmann.com 44 (Delhi)(HC)
S. 151 : Reassessment-Sanction for issue of notice-After the expiry of four years-Satisfaction recorded by Joint Commissioner-The notice issued under section 148 and order is set aside. [S. 147, 148, 151 (1), Art. 226]
Pinki Rajesh Modi v. ITO (2023) 294 Taxman 491 (Bom.)(HC)
S. 149 : Reassessment-Time limit for notice-Service of notice-Period of limitation-Authentication of notices and other documents-Notice dated 2-6-2022 for the assessment years 2013-14 and 2014-15, mailed after 3-6-2022-Not mentioning the name and designation of the concerned officer-Notice and order is quashed and set aside. [S. 148, 148A(b), 148A(d), 282A, Art. 226]
Jindal Exports and Imports (P.) Ltd. v. DCIT [2023] 294 Taxman 711 (Delhi)(HC)
S. 148A : Reassessment-Conducting inquiry, providing opportunity before issue of notice-Time limit for notice-Notice dated 30-6-2021-The said notice was dispatched on 16-7-2021-Limitation expired on 30-6-2021-Notice is barred by limitation-Notice and order was quashed. [S. 148, 148(b), 148A(d), 149, Art. 226]
Himanshu Infratech (P.) Ltd. v. ITO (2023) 294 Taxman 715 (Delhi)(HC)
S. 148A : Reassessment-Conducting inquiry, providing opportunity before issue of notice-No obligation to supply material or evidence on basis of which opinion is formed – Interpretation of Taxing Statutes – Nothing can be read into or implied – Words to be given their plain meaning-A taxing statute is to be interpreted literally-There is no intendment to taxing statute and nothing can be implied from or read into a taxing statute. The words used in taxing statutory provision are required to be given their plain meaning-.Alternative remedy-Writ petition is dismissed.[S. 148, 148A(b), 148A(d), Art. 226]
Amrit Homes (P.) Ltd. v. DCIT (2023) 457 ITR 334 /294 Taxman 661 (MP)(HC)