The case confirms that the CBDT’s Section 151A notification makes the NFAC/NPAC the sole authority for issuing Section 148 reassessment notices after March 29, 2022.4 The ITAT ruled that the local AO lacked the legal authority, rendering the entire reassessment process and order non est.
The Revenue relied on suspicion and the principle of human probability to challenge cash deposits made by a crockery and electronics trader during the permitted demonetisation window. The Tribunal held that without first rejecting the books of accounts under Section 145(3), the AO cannot legally disregard the substantial cash-in-hand shown by the assessee’s audited records and verified festival season sales.
The AO mechanically reopened the case and made a 2.86 crore addition based only on an investigation alert, without being able to identify the alleged property. The ITAT upheld the quashing of the entire proceeding, ruling that simple reproduction of external information, without independent application of mind or tangible evidence, invalidates the reassessment notice.
The Chandigarh ITAT upheld the deletion of a ₹3.18 Crore disallowance under Section 40A(3), ruling that the large cash payment for land purchase was dictated by business expediency due to high mistrust and a prior dispute, despite exceeding the banking limits.
ITAT Chandigarh deleted a lakh unexplained money addition and allowed S.54 deduction after the retired Colonel substantiated the property sale source with bank records.
The ITAT Chandigarh ruled in Arun Dhir vs DCIT that a lump sum in lieu of pension is exempt under Section 10(10A), rejecting the necessity of receiving it strictly upon superannuation.
The ITAT Chandigarh quashed a revision, holding that when the Assessing Officer (AO) conducts a proper enquiry, the PCIT cannot substitute their judgment merely because they desire a deeper verification. The ruling establishes that inadequate enquiry is distinct from lack of enquiry, and only the latter justifies revision.
ITAT Chandigarh holds Rs.25 lakh leave encashment limit prospective (w.e.f. 01.04.2023), restricting a PSU retiree’s exemption claim for AY 2021-22 to Rs.3 lakh under S. 10(10AA)(ii)
ITAT Chandigarh deletes ₹1.12 Cr addition for Northern Royalty Co. u/s 153C. Assessee’s revised profit (14-15%) was far higher than the 1.47% profit indicated by seized mining records. Arbitrary 18% NP rate rejected; consistency upheld. Revised return accepted.
ITAT Chandigarh held that disallowance under section 14A of the Income Tax Act set aside since own funds and reserves of the assessee are more than sufficient to cover the investment made during the year. Accordingly, appeal of revenue dismissed.
