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-No notice was issued on original return filed-Assessment proceedings not pending on date of search-Addition is not valid. [S. 143(1), 143(2)]
Unified Infrastructure Pvt. Ltd v. ACIT (2022)96 ITR 62 (SN) (Delhi) (Trib) Unified Developers Pvt. Ltd. v ACIT (2022)96 ITR 62 (SN) (Delhi) (Trib)
S. 153A : Assessment-Search or requisition-Assessment of third person-Agricultural land at time of transfer and put to agricultural operations-Purchaser of land used for non-agricultural purpose not relevant in determining nature of aassets sold by aaassessee on date of sale-Sale consideration cannot be assessed as business income-Order of CIT(A) is affirmed. [S. 10(38), 28(i), 45]
ACIT v. Renaissance Cultivation LLP (2022) 96 ITR 665 / 219 TTJ 327 /141 taxmann.com 252 (Pune)(Trib)
S. 153A : Assessment-Search or requisition-Bogus Purchases-Additions made for bogus purchases in name of assessee’s concern-Additions made to similar amounts in hands of assessee amounts to double addition. [S. 132]
BGR Energy Systems Ltd. v. ACIT (2022)96 ITR 625 (Chennai) (Trib) ACIT v. Sasikala Raghupathy (Smt.) (2022)96 ITR 625 (Chennai) (Trib)
S. 153A : Assessment-Search or requisition-Unexplained money-Assessment of third party-Cash Deposits-Routed through books of accounts-Books of accounts not rejected-Additions made on mere conjecture not sustainable.[S. 69A]
Tripta Rani (Smt.) v. ACIT (2022)97 ITR 389 (Chad) (Trib)
S. 153A : Assessment-Search or requisition-Unaccounted cash transactions-Compensation received for selling shares-Assessing Officer had not conducted any independent enquiry or made any efforts to corroborate such unaccounted cash transactions with seized material addition was unjustified. [S. 4, 132]
ACIT v. Anand Jaikumar Jain (2022) 215 DTR 309 / 218 TTJ 813 / [2023] 147 taxmann.com 125 (Mum)(Trib)
S. 153A : Assessment-Search or requisition-Unabated assessment-No incriminating material was found-Addition cannot be made. [S. 132, 143(3)]
ACIT v. N.M. Agro Pvt Ltd (2022) 100 ITR 482 (Delhi)(Trib)
S. 153A : Assessment-Search or requisition-Assessments which do not abate-Can be interfered with only on basis of incriminating material or undisclosed income or property unearthed during Search-Time limit to issue notice under Section 143(2) has not expired-Assessing Officer is entitle to verify the income declared. [S. 143(2) 143(3)]
V. Premalatha (Smt) v. ACIT (2022)100 ITR 432 (Chennai)(Trib)
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)