HC held proceedings under Section 153C invalid as no ...

Income Tax Proceedings Under Section 153C Invalid As Seized Documents Had No Direct Link To Undisclosed Income

February 22, 2025

Case Laws Income Tax HC

HC held proceedings under Section 153C invalid as no incriminating material pertaining to assessed years was discovered during search. The provisional balance sheet found did not reflect affairs of AYs 2004-05 and 2005-06 or display carried forward entries. The requirement that seized material must relate to undisclosed income predated the 2015 amendments adding "have a bearing on" language. The AO of non-searched person must form opinion that material impacts assessment before initiating proceedings. Mere mechanical transmission of documents without substantive connection to undisclosed income insufficient. ITAT correctly annulled assessment. Appeal dismissed in favor of assessee.

View Source

← Previous Next →

HC held proceedings under Section 153C invalid as no ...

Income Tax Proceedings Under Section 153C Invalid As Seized Documents Had No Direct Link To Undisclosed Income

February 22, 2025

Case Laws Income Tax HC

You may also like:

Proposed amendment enables recovery of existing liabilities under Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015 from seized assets...

The Income Tax Appellate Tribunal held that when the assessing officer considered undisclosed income based on seized material, they ought to have also considered...

The summary highlights the key difference between the scope of total income under the Income Tax Act and the Black Money (Undisclosed Foreign Income and Assets) and...

Assessment u/s 153A - unexplained investment - the Assessing Officer failed to record as to how the documents found during search reflected any undisclosed income of the...

Assessment u/s 153C - Undisclosed investment u/s 69 r.w.s 115BBE - Whether incriminating material belonging to Assessee found during the course of search on the basis of...

Penalty order u/s 271AAB for treating an amount included in the Return of Income as 'undisclosed income' was found unjustified. The Commissioner of Income Tax (Appeals)...

Addition based on unsubstantiated documents like loose sheets, jottings, and Excel sheets - unaccounted cash receipts from students - cannot be sustained. Statements...

Sections 132B, 140A, 153A and 234B of the Income Tax Act, 1961 were analyzed regarding adjustment of seized cash against tax liability. The appellants claimed that cash...

Reopening of assessment u/s 147 - Unaccounted income - As seized document is a piece of evidence which play a vital role to determine the income of the assessee. But...

This case deals with the levy of penalties u/ss 271AAA and 271(1)(c) of the Income Tax Act in relation to various additions made to the assessee's income based on seized...

Penalty levied by the AO u/s. 271AAB r.w.s. 274 - levy penalty of 30% on undisclosed income - the reasons given by the AO to levy 30% penalty on undisclosed income is...

The Income Tax Appellate Tribunal held that the assessee's plea towards non-applicability of Section 271AAB of the Income Tax Act was devoid of rationale. The Tribunal...

Respondent-authorities failed to communicate reasons for retaining books of accounts and documents beyond statutory period of 30 days from assessment order as mandated...

UNION BUDGET 2012-13 - DIRECT TAX - INCOME TAX.

The case involves the validity of assessments u/s 153A and 132 of the Income Tax Act. In the absence of incriminating material seized during the search, assessments...

Quick Updates: