Kalyanika Infra Mega Ventures Pvt. Ltd. Vs Dy.C.I.T. (Central) (ITAT Jabalpur)
In a significant decision, the Income Tax Appellate Tribunal (ITAT) Jabalpur addressed critical questions regarding the jurisdiction and validity of assessment orders in the case of Kalyanika Infra Mega Ventures Pvt. Ltd. vs Dy.C.I.T. (Central). The case revolved around the interpretation of Section 153A of the Income Tax Act, 1961, concerning block assessments and the authority of the Assessing Officer (AO) in conducting assessments post a search or requisition under Sections 132 and 132A, respectively.
Background of the Case
The dispute arose from assessment years 2014-15, with the Assessing Officer passing assessment orders under Section 143(3) instead of Section 153C of the Income Tax Act. The difference of opinion between the Accountant Member and the Judicial Member led to the matter being referred to the Third Member of the Tribunal.
The Tribunal’s Decision
The Third Member, after careful consideration, referred to the Supreme Court’s judgment in the case of Pr. CIT Vs Abhisar Buildwell P. Ltd. (dated 24.04.2023) to resolve the dispute. The Supreme Court’s ruling elucidated the intent behind the introduction of Section 153A and its implications on block assessments.
Key points highlighted in the judgment include:
Jurisdiction under Section 153A: The Tribunal emphasized that in cases of search or requisition, the AO assumes jurisdiction for block assessment under Section 153A of the Act.
