Case was reopened after recording proper reason. Assessment was completed u/s.147 r.w.s. 144B of the Act on 25.03.2022, wherein addition of Rs.1 Crore was made in respect of unexplained investment in the immovable property.
ITAT Delhi rules only actual income from bogus sales/purchases can be taxed. Disallows additions exceeding declared income. Key insights into tax assessment process.
Before ITAT, it was submitted that it is impossible for the assessee to mention new registration number in ITR-7 as it was filed on 13.03.2022 and the same was obtained on 04.04.2022 after filing of ITR-7.
Assessee filed return for AY 2013-14 declaring Nil income. The case of the assessee was reopened based on information received from investigation unit that the assessee is one of the beneficiaries of accommodation entries and bogus LTCG.
In the case abovementioned ITAT remanded the matter to CIT (A) after observing that delay of 32 days was explained satisfactorily. Assessee was salaried employee and not used to the proceedings of income-tax litigation.
ITAT considered two issues on this aspect. Firstly, whether PCIT rightly exercised its revisional jurisdiction and secondly whether order u/s 263 was passed on merits regarding to the net foreign exchange gain.
During the pendency of assessment proceedings assessee died and notice u/s. 142(1) dated 12.03.2022 has been issued to legal heir/representative of the assessee as per provisions u/s. 159.
Mechanical approval under Section 153D invalidates assessment orders, per ITAT Delhi in Kavita Jain vs DCIT. Analysis of procedural lapses and judicial precedents.
Assessee could not have been subjected to additions in case of search/survey operations merely on basis of statement recorded under section 132(4) unless and until some corroborative evidence was found in support of such admission.
The company contended that the satisfaction note required to initiate the assessment under section 153C was recorded by AO only on January 18, 2021, making the search year AY 2021-22.
