Section 153C

Enforceability of Section 153A/ Section 153C –An Analysis

Income Tax - Section 153 A of the Income-tax Act, 1961 provides for the scheme of assessment of income in case of a searched person. In terms of the said section, the Assessing Officer can frame assessment of a searched person for six assessment years immediately preceding the year of search. One of such facet is whether while […]...

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Budget 2017: In case of Search Assessment notice can be issued for 10 Years

Income Tax - In order to protect the interest of the revenue in cases where tangible evidence(s) are found during a search or seizure operation (including 132A cases) and the same is represented in the form of undisclosed investment in any asset, it is proposed that section 153A relating to search assessments be amended to provide that notice under th...

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Principles & Procedures of Assessment u/s 153C

Income Tax - a person other than the person referred to in section 153A, then, the books of account or documents or assets, seized or requisitioned shall be handed over to the Assessing Officer having jurisdiction over such other person ] and that Assessing Officer shall proceed against ...

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Scope of additions that can be made in a pending assessment and in a completed assessment pursuant to a search u/s 132

Income Tax - Completed assessments can be interfered with by the AO while making the assessment under Section 153 A only on the basis of some incriminating material unearthed during the course of search or requisition of documents or undisclosed income or property discovered in the course...

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Amendment proposed by union budget 2010 in Provisions dealing with Settlement Commission

Income Tax - Entire scheme of the eligibility, powers and procedure before the settlement commission was overhauled by Finance Act, 2007, w.e.f. 1.6.2007. In the overhauled scheme, search / requisition cases covered by the provisions of section 153A of the Act were not allowed to take benefit of the settlement commission. It also excluded the cases of...

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Assessment U/s. 153C without recording of satisfaction by AO of searched person is bad in law

Salasar Dwellers Pvt. Ltd. Vs DCIT (ITAT Mumbai) - Salasar Dwellers Pvt. Ltd. Vs DCIT (ITAT Mumbai) Satisfaction in the case is not recorded by the AO of the searched party, which is a pre-condition for invoking jurisdiction u/s 153C of the Act and hence, the assessment framed u/s 153C read with Section u/s 143(3) of the Act is bad in law and hence,...

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Disallowance U/S 40A(3) not Possible if transaction genuine & cash payment done on Seller’s Insistence

DCIT Vs M/s. Brilliant Sare Reality Pvt. Ltd. (ITAT Indore) - When cash payment was done on insistence of the seller, amount was duly recorded in the sale deed and no doubt was raised with regard to the genuineness of the transaction, disallowance u/s 40A(3) not justifiable....

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Addition based on seized document related to year different than notice issued U/s. 153C not valid

Pr. CIT Vs Shrim Investment Solutions (P) Ltd. (Delhi High Court) - Addition made under section 68 consequent to notice issued under section 153C was deleted because the AO had initiated assessment proceedings under section 153C for the relevant assessment years without pointing out or referring to any seized document belonging to those years and, therefore, there w...

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Issuance of notice U/s. 153C is mandatory for assessment u/s. 153C

BNB Investment & Properties Ltd. Vs DCIT (ITAT Delhi) - Issuance of notice under section 153C is mandatory and a condition precedent for taking action against assessee under section 153C, therefore, assessment order under section 153C issued without issuing a notice under section 153C was bad in law....

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Sec. 153C Addition cannot be made merely based on Dumb documents

ITO Vs Kranti Impex Pvt. Ltd. (ITAT Mumbai) - When dumb documents like loose sheets of papers are recovered and revenue wants to make use of it, onus rests on the Revenue to collect cogent evidence to corroborate the noting therein. As AO failed to do so, addition made under section 153C was deleted....

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Section 153C’s Popular Posts

Recent Posts in "Section 153C"

Assessment U/s. 153C without recording of satisfaction by AO of searched person is bad in law

Salasar Dwellers Pvt. Ltd. Vs DCIT (ITAT Mumbai)

Salasar Dwellers Pvt. Ltd. Vs DCIT (ITAT Mumbai) Satisfaction in the case is not recorded by the AO of the searched party, which is a pre-condition for invoking jurisdiction u/s 153C of the Act and hence, the assessment framed u/s 153C read with Section u/s 143(3) of the Act is bad in law and hence, […]...

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Disallowance U/S 40A(3) not Possible if transaction genuine & cash payment done on Seller’s Insistence

DCIT Vs M/s. Brilliant Sare Reality Pvt. Ltd. (ITAT Indore)

When cash payment was done on insistence of the seller, amount was duly recorded in the sale deed and no doubt was raised with regard to the genuineness of the transaction, disallowance u/s 40A(3) not justifiable....

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Addition based on seized document related to year different than notice issued U/s. 153C not valid

Pr. CIT Vs Shrim Investment Solutions (P) Ltd. (Delhi High Court)

Addition made under section 68 consequent to notice issued under section 153C was deleted because the AO had initiated assessment proceedings under section 153C for the relevant assessment years without pointing out or referring to any seized document belonging to those years and, therefore, there was no prima facierationale or logic behi...

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Enforceability of Section 153A/ Section 153C –An Analysis

Section 153 A of the Income-tax Act, 1961 provides for the scheme of assessment of income in case of a searched person. In terms of the said section, the Assessing Officer can frame assessment of a searched person for six assessment years immediately preceding the year of search. One of such facet is whether while […]...

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Issuance of notice U/s. 153C is mandatory for assessment u/s. 153C

BNB Investment & Properties Ltd. Vs DCIT (ITAT Delhi)

Issuance of notice under section 153C is mandatory and a condition precedent for taking action against assessee under section 153C, therefore, assessment order under section 153C issued without issuing a notice under section 153C was bad in law....

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Sec. 153C Addition cannot be made merely based on Dumb documents

ITO Vs Kranti Impex Pvt. Ltd. (ITAT Mumbai)

When dumb documents like loose sheets of papers are recovered and revenue wants to make use of it, onus rests on the Revenue to collect cogent evidence to corroborate the noting therein. As AO failed to do so, addition made under section 153C was deleted....

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Appraisal report cannot substitute requirement of recording of satisfaction in case of persons searched

Shri Anil Agarwal Vs ACIT (ITAT Indore)

Shri Anil Agarwal Vs ACIT (ITAT Indore) It has been held that even when the Assessing Officer of the person searched and the other person is common, the Assessing Officer of the person searched has to necessarily form a satisfaction that the item referred to in section 153C belongs or belong to a person other […]...

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S. 153C List of shareholders maintained by company cannot be said to be belonging to such shareholders

DCIT Vs Esteem Textiles P. Ltd. (ITAT Delhi)

DCIT Vs Esteem Textiles P. Ltd. (ITAT Delhi)  Evidently, AO on the basis of a letter written by the company, which was returned by the assessee by putting its signature and seal in confirmation of the accounts, had framed the assessment under section 153C. However, the said document could not be said to belong to […]...

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Assessment U/s. 153C invalid if No satisfaction recorded in case of other person, i.e. assessee

PR. Commissioner of income tax delhi-18 Vs M/S. N.S. Software(Firm)(Delhi High Court)

PCIT Vs N.S. Software (Firm) (Delhi High Court) It is now a settled proposition of law that even if AO for the person from whose premises documents were seized is the same as the AO for the person to whom  document belonged, separate satisfaction notes must be recorded. In the instant case, the AO’s note […]...

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Assessment U/s. 153C not valid in Absence of incriminating material

Shri Balaji Builders Kakinada Vs ACIT (ITAT Visakhapatnam)

Shri Balaji Builders Kakinada Vs ACIT (ITAT Visakhapatnam) Merely because books of account could not be traced at the time of survey/search, it could not be presumed that the books of account were not maintained unless all the efforts were made by AO. Further As per the provisions of section 153C of the Act, it […]...

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