"CA Rajesh Kumar ."
ITAT held that the Assessing Officer failed to record proper satisfaction linking seized material to the assessee’s income. Consequently, proceedings under Section 153C were quashed.
The tribunal held that penalty under Section 271AAB cannot survive when the notice fails to specify the exact charge or applicable clause. A vague and routine penalty notice violates mandatory legal requirements, rendering the penalty invalid.
The tribunal ruled that penalty under Section 270A cannot survive when income is assessed purely on estimated gross profit after rejecting books. Additions based on estimation do not amount to under-reporting or misreporting of income.
The tribunal examined whether a final assessment passed after the statutory time limit was valid. It held that assessments beyond Section 153 timelines are void, even when issued under the DRP framework.
The Tribunal held that a common, perfunctory sanction under Section 153D is invalid. The key takeaway is that lack of independent application of mind vitiates search assessments entirely.
Tribunal held that unsecured loans cannot be treated as unexplained where confirmations, bank statements, and tax returns establish identity, creditworthiness and genuineness through banking channels.
The issue was whether revision could be invoked during a pending appeal. ITAT held that PCIT lacks jurisdiction once the matter is before CIT(A).
The issue was whether reassessment initiated by the Jurisdictional AO was valid. The Tribunal held the notice invalid as it violated mandatory faceless assessment procedures, rendering the reassessment void.
The tribunal held that where the Assessing Officer conducted exhaustive enquiries and applied his mind in a 153C assessment, revision under section 263 is invalid. A mere change of opinion cannot justify reopening a concluded assessment.
The Tribunal distinguished cases of jurisdictional defect and upheld the assessment where the initial notice was lawfully issued. The key takeaway is continuity of valid scrutiny proceedings despite AO change.
