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. 153C : Assessment-Income of any other person-Search-
Assessing Officer accepting explanation of searched party that document seized pertained to financial year 2016-2017 and not financial year 2017-2018-Notice issued for assessment year 2018-2019 and consequent assessment order not sustainable.[S. 132(4), Art. 226]
Rakesh Babbar v. ACIT (2025) 476 ITR 439 /174 taxmann.com 347 (Delhi)(HC)
S. 153A: Assessment-Search-Search warrants-Laptop containing relevant data found from third party search No incriminating material evidence found from assessee’s premises to justify additions-Held, proceedings under section 153A initiated without incriminating material found from assessee’s premises unsustainable.[S. 132 Art. 226]
PCIT v. M3M India Holdings(2025) 476 ITR 728 (P & H) (HC)
S. 151A: Face less assessment scheme-Notice under section 148 issued by jurisdictional Assessing Officer instead of Faceless Assessing Officer-Non-compliance with provisions of section 151A-Notice invalid.[S. 147, 148, 148A(b), 148A(d), Art.226]
Ashni Logistics Pvt. Ltd v. ACIT (2025) 476 ITR 684 (Bom)(HC)
S. 151 : Reassessment-Sanction for issue of notice-Specified authority-Grant of approval under section 151 to be in consonance with extended time limits Approval granted by Joint Commissioner not compliant with provisions Notice and assessment order invalid.[S. 147, 148, 149(1)(b), Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Act, 2020, S. 3, Art. 226]
Rohit Kumar v. ITO (2025) 476 ITR 691 /170 taxmann.com 506 (Delhi)(HC)
S. 151 : Reassessment-Sanction for issue of notice-Limitation-Notice issued beyond six years-Time spent by assessee in earlier litigation can neither be excluded nor can be claimed to result in extension of limitation period-Notice without sanction from prescribed authority-Notices and order invalid.[147, 148, 148A(b), 148A(d), 149(1)(b), 151(ii), Art. 226]
Abhinav Jindal. v ACIT (2025) 476 ITR 330/171 taxmann.com 217 (Delhi)(HC)
S. 148A: Reassessment-Conducting inquiry, providing opportunity before issue of notice-Bogus purchase-Accommodation entries Unexplained income-The Assessing Officer is not required to conclusive determine escaped income at threshold stage-Order and notice for reopening assessment up held. [S. 69, 147, 148, 148A(b), 148A(d), Art. 226]
Vivek Kumar(No. 2) v. ITO (2025) 476 ITR 562 (Delhi)(HC)
S. 148A: Reassessment-Conducting inquiry, providing opportunity before issue of notice-Faceless assessment-Bogus purchases-Accommodation entry providers-Assessing Officer not required to conclusively determine escaped income at threshold stage Order and notice for reopening assessment upheld-Issue regarding jurisdiction of Assessing Officer to initiate reassessment proceedings in faceless assessment regime is no more res integra-Writ petition was dismissed. [S. 147, 148, 148A(b), 148A(d), Art. 226]
Vivek Kumar v. ITO (2025) 476 ITR 562 (Delhi)(HC) Editorial : SLP dismissed, Vivek Kumar v ITO (2025) 476 ITR 567 (SC)
S. 148A: Reassessment-Conducting inquiry, providing opportunity before issue of notice-Search and seizure-Asset-Limitation-Six or ten assessment years preceding search for which assessment can be reopened-Asset-Assessment year 2016-2017 fell beyond the block of six years the notice issued under section 148 and the reassessment proceedings under section 147 initiated pursuant thereto were set aside. [S. 132, 132A, 147, 148, 148A(b), 148 A(d), 153A(1), proviso 4.]
Smart Chip Pvt. Ltd. v. ACIT (2025) 476 ITR 389/174 taxmann.com 297 (Delhi)(HC)
S. 148A: Reassessment-Conducting inquiry, providing opportunity before issue of notice-Political parties-Approval without application of mind-Assessing Officer restrained from enforcing final assessment order without leave of court. [S. 13A. 147, 148, 148A(b), 148A(d), 151, Art.226]
All India Trinamool Congress v. ACIT (2025) 476 ITR 340 /173 taxmann.com 125 (Cal)(HC)