Following a search on third parties, the Assessing Officer relied upon seized material while framing the assessment under section 143(3) without invoking the reassessment provisions introduced by the Finance Act, 2021 or obtaining the mandatory approval under section 148B. The Tribunal held that where the assessment year falls within the three preceding years covered by Explanation 2 to section 147, the procedure prescribed under the new reassessment regime is mandatory. Failure to comply with these jurisdictional requirements rendered the assessment void ab initio. The additions towards alleged on-money receipts and unexplained investment were based entirely on digital data and statements obtained from independent deed writers and brokers during search. The Tribunal held that none of the seized material was recovered from the assessee, no satisfaction was recorded that the documents belonged to the assessee, and no opportunity of cross-examination was granted. In the absence of corroborative evidence or incriminating material found from the assessee’s premises, the additions were deleted. The assessee raised additional legal grounds challenging the jurisdiction of the Assessing Officer to complete the assessment under section 143(3) instead of following the reassessment procedure prescribed after the Finance Act, 2021. The Tribunal held that the grounds involved pure questions of law arising from the existing record and did not require investigation into new facts. The additional grounds were accordingly admitted. (AY. 2021-22).<\/p>\n","protected":false},"excerpt":{"rendered":"
S. 148B: Prior approval for assessment, reassessment or recomputation in certain cases-Search-related assessment-Assessment completed under section 143(3) instead of section 147-Mandatory procedure under Finance Act, 2021 not followed-Assessment quashed-Third-party documents and statements-No cross-examination-No incriminating material found from assessee-Additions deleted-Appeal to Appellate Tribunal-Additional legal grounds-Pure questions of law-Grounds admitted.[S. 68, 69, 132,132(4) 143(2) 143(3), 147, 148, 254(1)]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_post_was_ever_published":false},"categories":[21],"tags":[],"class_list":["post-63542","post","type-post","status-publish","format-standard","hentry","category-income-tax-act"],"acf":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-gwS","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/63542","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/comments?post=63542"}],"version-history":[{"count":1,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/63542\/revisions"}],"predecessor-version":[{"id":63543,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/63542\/revisions\/63543"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=63542"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=63542"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=63542"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}