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 or requisition-Undisclosed income-Seized material-Set off Shortage of stock was given in the year such shortage was unearthed and not for earlier years-Concealed profits-No evidence was found in the course of search-Addition was deleted. [S. 132]

Agya Ram Manohar Lal v. ACIT (2022) 220 TTJ 300 (Chd) (Trib)

S. 153A : Assessment-Search or requisition-On money on sale of property-Loose sheets-Agricultural land-Undisclosed income-Found in the possession of buyers-Capital receipt-Admitted the receipt of on money-Cannot be treated as capital receipt-Addition is justified. [S.2(14)(iii), 4, 132]

A.Jhonkar v. Dy. CIT v. Johnkumar Trust (2022) 220 TTJ 187 (Chennai) (Trib) Dy. CIT v. Johnkumar Trust (2022) 220 TTJ 187 (Chennai) (Trib)

S. 153A : Assessment-Search or requisition-No incriminating material was found-Issue of shares to Foreign entities-Addition cannot be made as cash credits-Binding precedent-Decisions of the non-jurisdictional High Court are followed by the lower authorities, only in the absence of benefit of guidance by the jurisdictional High Court on that issue.[S. 68]

Luxora Infrastructure (P) Ltd. v. Dy CIT (2022) 220 DTR 65 / 220 TTJ 568 / (2023) 198 ITD 0713 (Mum)(Trib)

S. 153A : Assessment-Search or requisition-Assessments not abating on date of search-No incriminating material-Addition cannot be made-Loss on sale of investments-Matter remanded. [S. 73]

Raju Verma v. Dy. CIT (2022) 98 ITR 15 (SN.) (Dehradun) (Trib)

S. 153A : Assessment-Search or requisition-Unexplained Income-Cash deposited in the bank account during demonetization-Cash sales and realization of trade debtors-Recorded in books of accounts-No adverse comments by investigation department-No inflated purchases or suppressed sales-Additions not tenable. [S. 69A]

Dy. CIT v. Roop Fashion (2022)98 ITR 419 (Chd) (Trib)

S. 153A : Assessment-Search or requisition-Undisclosed Income-Bogus Purchases from Hawala or Bogus dealers-Assessee not in possession of evidences/bills-Average ratio of bogus purchase to turnover 1%-Bogus purchase estimation on that basis-Additions justified.[S. 132]

Dy. CIT v. Wind World India Ltd. (2022) 98 ITR 22 (Mum.)(Trib)

S. 153 : Assessment-Reassessment-Limitation-Order was passed beyond the period of nine months-Order is bad in law.[S. 147, 148, 153(2)]

Mohd. Arif v. ITO (2022) 219 TTJ 485 / 217 DTR 104 (Raipur)(Trib)

S. 153 : Assessment-Limitation-Threshold monetary limit of Rs. 5 crores not available to characterise transactions with associated enterprises as specified domestic transactions-Order is nullity and barred by limitation. [S. 92BA, 92CA(3)]

Garg Acrylics Ltd. v. Add. CIT (2022)96 ITR 61 (SN) (Delhi)(Trib)

S. 153 : Assessment-Reassessment-Limitation-Ante-dated order-Direction of Addl. CIT-AO in April, 2015 and signed by pre-dating it as 30th March, 2015-Assessment order was time barred and quashed. [S. 147, 148, 153(2)]

Dy. CIT v. Clarion Technologies (P) Ltd. (2022) 216 TTJ 23 (UO) (Pune)(Trib)

S. 151 : Reassessment-Sanction for issue of notice-After the expiry of four years-Sanction of Prescribed Authority-Failure by Assessing Officer to obtain approval of prescribed authority Qua “Reasons to believe”–Reassessment Invalid-Assessment is liable to be quashed. [S. 147 148]

Ramesh Kumar v. ITO (2022) 95 ITR 79/ 218 TTJ 749 (Amritsar)(Trib)