S. 149 : Reassessment – Time limit for notice – Notice issued beyond three years – Escaped income must be represented in the form of an asset under pre-amended section 149(1)(b) as substituted by Finance Act, 2021 – Alleged bogus purchases are revenue items and not “asset” – Reopening invalid – Assessment quashed – Consequential addition deleted. [S. 144, 143(2), 142(1), 147, 148 , 149(1)(b) ]

Direct Tax Vivad Se Viswas Scheme, 2024.
S. 2(1)(a) : Appellant -Pendency of appeal-Rejection of declaration – Pendency of writ petition – Assessee covered within definition of “appellant” – AO directed to process declaration in Form No. 1. [S. 89(1)(a), 89(1)(j), 91, ITACT, S. 144C, Art. 226]

S. 271(1)(c) : Penalty-Concealment-Partition-Dissolution of HUF-Long-term capital loss claimed by dissolved HUF disallowed-Penalty proceedings initiated and order passed in the name of non-existent entity-Reason recorded in penalty order contrary to show-cause notice-Addition in assessment does not automatically justify penalty-Deletion of penalty upheld. [S. 171, 260A]

S. 263 : Commissioner-Revision of orders prejudicial to revenue-Lack of enquiry-Leasehold rights in land and building duly examined by Assessing Officer-Valuation based on registered valuer’s report-Reversal of provision disallowed u/s 43B cannot be taxed on write-back-Revision not sustainable-Tribunal quashing revision affirmed. [S. 43B, 56(2)(x), 260A].

S. 249 : Appeal-Commissioner (Appeals)-Form of appeal and limitation-Condonation of delay-Non-consideration of assessee’s application-Order passed without examining records amounts to gross negligence-Order set aside and matter remanded-Cost of Rs 10000 was imposed on Department with liberty to recover the same from the erring officer in accordance with law. [S. 246A, 249(3), Art. 226]

S. 245D: Settlement Commission-Settlement of cases-True and full disclosure-High Court set aside order of Single Judge interfering with Settlement Commission order-Once ITSC was satisfied about true and full disclosure and had proceeded beyond stage of s. 245D(2C), writ court cannot re-appreciate sufficiency of material or interpretation of seized documents-Alleged calculation error could be brought before appropriate authority for correction. [S. 245C, 245D(2C), 245D(4), Art. 226]

S. 159 : Legal representatives – Return – Condonation of delay – Executor of will is covered within expression “legal representative” and is liable to be assessed in respect of income of deceased – Delay in filing return directed to be condoned. [S. 2(29), 119(2)(b), 139, 159, Code of Civil Procedure, 1908, S. 2(11), Art. 226]

S. 153C : Assessment-Income of any other person-Search-Seized documents relating to cash payments for land purchase pertaining to earlier year-No incriminating material having bearing on income of relevant assessment years-Notice and proceedings held invalid and quashed.[S.132A, 153A, Art. 226]

S. 153 : Assessment-Limitation-Proceedings under s. 144C-Whether time consumed in DRP procedure is to be included within limitation prescribed under S. 153-Divergent judicial views-Issue relating to applicability of twelve-month limitation under S. 153(3) even in DRP cases and determination of maximum permissible period for completion of assessment referred to Larger Bench. [S. 144C, 153(3)]

S. 149 : Reassessment-Time limit for notice-Finding or direction in appeal-S. 150 cannot be invoked to revive time-barred reassessment proceedings-Notice issued beyond limitation invalid. [S. 148, 148A(d), 150, Art. 226]