Case Law Details
Ashok Commercial Enterprises Vs ACIT (Bombay High Court)
Bombay High Court held that jurisdiction to assess/ reassess u/s 153C of the Income Tax Act in respect of unabated/ completed assessments without any incriminating material found during the search unjustified.
Facts- Petitioner is a partnership firm engaged in the business of financing. AO issued a notice u/s. 142(1) of the Act requiring petitioner to furnish details regarding the write-off of bad debts. AO accepted the claim of the petitioner for write off of loans and advances.
Later, officers of the Income Tax Department conducted a survey u/s. 133A of the Act in the premises of petitioner to verify that the entries shown in the ledger account of petitioner in the books of Hubtown Limited, agreed with entries in the ledger account of Hubtown Limited made in the books of account of petitioner. Respondent passed an order u/s. 153C read with section 144 of the Act and disallowed the amount of loan/ bad debts written off.
Conclusion- The Apex Court held that issuance of notice under Section 143(2) of the Act was a jurisdictional condition precedent for passing an assessment under Section 153A/153C.
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