S. 153A: Assessment-Search-Seized electronic material coupled with the statement given by the accounts manager of the assessee under s. 132(4) constituted incriminating material-Objection for validity of jurisdiction was rejected-Undisclosed income-Rejection of books of account justified-Estimated the profits of the assessee @ 2.21 per cent of the turnover was affirmed-Unaccounted sale proceeds could be telescoped towards the source of unaccounted expenditure and therefore, no separate addition on this account was permissible. [S.132, 132(4)]

S. 153A: Assessment-Search-Valid information-Proceedings are valid-Cash credits-Gift-Grandmother-No source to substantiate the gift-Addition was affirmed-Unexplained expenditure-Household expenses-Addition was affirmed.[S.68, 69C]

S. 153A: Assessment-Search-Tribunal cannot examine the legality of the search once the warrant and Panchnama were drawn on the assesse-Incriminating material-Unabated and concluded assesments-No addition can be made without incriminating material-Dairy was found in the premises of the director-Revenue failed to establish that the contents of entries discovered from a third person with the assessee-company-No addition can be made.[S. 132, 132(4),292C]

S. 149: Reassessment-Time limit for notice-Time-limit of four years from the end of the relevant assessment year, i.e., 2015-16, expired on 31st March, 2020, and the period of six years from the end of the relevant assessment year expired on 31st March, 2022-Notice under S. 148 was issued on 29th July, 2022, i.e., 34 days after the balance time period-Barred by limitation-Reassessment proceedings and assessment order passed are quashed.[S. 147, 148, 148A(b)]

S. 148:Reassessment-Information-Internal audit memo-notice issued under s. 148 on 29th June, 2021, was deemed to be a show-cause notice issued under s. 148A(b)-The internal audit memo was outside the scope and ambit of the term “information” as provided in Expln. 1 to s. 148 prior to its amendment by the Finance Act, 2022-Order of the CIT(A) quashing the reassessment proceedings was upheld [S. 147, 148A(b)]

S. 147 : Reassessment-After the expiry of four years-Full and true disclosure-Survey-No failure to disclose material facts-Reassessment was quashed and set aside.[S.133A, 148]

S. 143(3): Assessment-Protective assessment-Additional ground-No provision exists in the IT Act giving power to the AO to write a letter to the first appellate authority to consider and treat the protective assessment as a substantive assessment; no protective assessment survives in the absence of a substantive assessment-Legal representative-order of the CIT(A) in making cause title in the automatically generated system data-The mention of deceased assessee’s name in the cause title did not vitiate the order. [S. 131,159, 254(1)]

S.80IA: Industrial undertakings-Enterprises engaged in infrastructure development-Failure to file audit report within prescribed time-limit-Filed the audit report in Form 10CCB prior to the processing of the return under S. 143(1)-Denial of exemption was not valid.[S. 80IA(4)(i), 80IA(7), 143(1), Form No 10CCB.]

S. 80G: Donation-Rejection of application was set aside-Matter was remanded to the file of CIT(E) to examine the accounts of three preceding years-In case there are no expenses exceeding 5 per cent on religious activities, approval under s. 80G(5) is allowable to the assessee if the assessee fulfils all other conditions. [S.11AA(2)(g), 12A, 12AB, 80G(5)]

S. 69C: Unexplained expenditure-Expenditure recorded in the books of account-Supported by third-party invoices and replied by parties-Deletion of addition by the CIT(A) was affirmed. [S.133(6)]