The Tribunal set aside the assessment after finding that a combined approval under Section 153D for multiple years vitiated proceedings. It held that such approval renders the assessment legally unsustainable.
The Tribunal ruled that assessment orders in e-proceedings must be digitally signed as per CBDT instructions. A manually signed order was held illegal and liable to be quashed.
The Tribunal held that the reassessment notice issued after the extended limitation period was invalid under Section 149. As a result, the entire reassessment based on alleged accommodation entries was quashed as void ab initio.
The Tribunal held that revision under Section 263 is invalid where the Assessing Officer examined records and adopted a plausible view. Mere disagreement or desire for further enquiry is insufficient.
The Tribunal ruled that Section 40(a)(ia) cannot be used to penalize deduction under an incorrect TDS provision when tax was actually deducted. The expenditure disallowance was rightly deleted.
The Tribunal observed that merely using the term misreporting without linking it to any specific statutory limb is insufficient. It quashed the penalty, reiterating that penal proceedings must be precise and legally justified.
The Tribunal held that the fresh notice issued under Section 148 was beyond the surviving limitation period available after applying TOLA and Supreme Court directions. As a result, the reassessment proceedings were declared void ab initio.
The Tribunal observed that the AO disallowed 50% of warranty provisions and 25% of liabilities without justification. It held that in absence of specific defects in remand proceedings, such ad hoc disallowances cannot survive.
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 AO compared per-location payments to different vendors to allege excessiveness. The Tribunal held that such comparisons lack statutory backing when parties are unrelated and services differ in nature and complexity.
