Income Tax : The ruling clarifies that unauthenticated digital chats and screenshots cannot form the sole basis of tax additions without proper...
Income Tax : Examine the legal disputes surrounding Section 153D approvals for tax assessments, including court rulings on mechanical approvals...
Income Tax : ITAT Ahmedabad held that WhatsApp chats indicating suppressed production for one month could not be extrapolated to the entire fin...
Income Tax : The ITAT Delhi held that a common satisfaction note covering multiple assessment years without year-wise incriminating material co...
Income Tax : The Tribunal held that contradictory third-party statements and unverified allegations cannot form the sole basis for taxing alleg...
Income Tax : The Kerala High Court remanded the matter after finding that the ITAT failed to expressly adjudicate the challenge to the validity...
Income Tax : The Mumbai ITAT held that reassessment proceedings under Section 147/148 were invalid where the case was based on search material ...
The ITAT voided multiple search assessments because the statutory approval under Section 153D was found to be mechanical and without independent application of mind. The Tribunal emphasized that a single, proforma approval for 42 assessment orders across multiple assessees, lacking specific facts or reasoning, renders the entire assessment void ab initio.
The ITAT Chandigarh quashed income tax assessments under Section 153A, ruling that the mandatory Section 153D approval was mechanical and invalid. The Tribunal held that the approving authority failed to apply independent reasoning, using a ‘rubber stamp’ proforma for multiple assessees without considering specific facts or seized material, thus making the entire assessment void ab initio.
The ITAT ruled that seized parallel Tally data, reflecting higher sales and income, constitutes reliable incriminating material, validating assessments made under Section 153A. The tribunal sustained additions for higher gross profit and unexplained credits after the taxpayer failed to disprove the parallel records’ accuracy, reinforcing the presumption under Section 292C.
Drawing on precedents, the ITAT held that a mandatory Section 153D approval for search assessments must be proven. The assessment order was set aside because the Department could not locate or produce the JCIT’s prior approval and satisfaction note after eight years.
The Tribunal held that a mechanical, same-day approval for 43 cases under Section 153D vitiated the entire search assessment proceedings under Section 153A. The assessment was quashed for lack of valid approval, emphasizing the necessity of independent application of mind by the approving authority.
ITAT Delhi held that notice under section 274 r.w.s. 271(1)(c) of the Income Tax Act issued without specifying the specific charge or limb i.e. without striking off the irrelevant limb is erroneous. Accordingly, penalty order u/s. 271(1)(c) cannot be sustained.
ITAT Delhi held that assessment under section 153A of the Income Tax Act based on common approval under section 153D of the Income Tax Act is non-est in the eye of law. Hence, the same is liable to be quashed.
Approval under Section 153D was invalid, as it was granted mechanically and collectively for several years, without independent application of mind. Such perfunctory approval defeats the statutory safeguard intended by the legislature. Consequently, the entire proceedings and assessments were quashed.
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 Delhi quashes search assessments for Jagat Group, ruling that a single, consolidated approval letter for multiple assessees and years under Section 153D was invalid and mechanical.
