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III. Direct Tax Case laws:
1. M/s Crystal Phosphates Ltd. Vs. ACIT, ITA No. 3630/Del/2009, Date of Pronouncement: 02.11.2012, ITAT - Delhi
Decision: In favour of Assessee
Section: 143(2) of Income Tax Act, 1961
Assessment Year: 2006-07
Whether
initiation of proceedings u/s 143(2) is valid even if the same is not
in accordance with the Instruction issued by CBDT for selection of
cases.
Held No
That
once CBDT has issued instructions for assumption of jurisdiction for
selection of cases, the same have to be followed in letter and spirit by
the AO. The burden lies on the authority assuming jurisdiction to show
and establish that such instructions have duly been complied and
satisfied in letter and spirit. Thus the notice issued u/s 143(2) of the
Act was held to be without valid jurisdiction.
(Please click here for judgment)
2. Gurinder Singh Bawa Vs. Dy. CIT, ITA No. 2075/Mum/2010, Date of Pronouncement: 16.11.2012, ITAT - Mumbai
Decision: In favour of Assessee
Section: 153A of Income Tax Act, 1961
Assessment Year: 2005-06
Case referred: All Cargo Global Logistics Ltd. 137 ITD 287 (Mum)(SB)
Whether
AO can make addition u/s 153A of the Act in absence of any
incriminating material being found during the search operation where no
assessment proceedings were pending
Held No,
That
where no assessment proceeding is pending, the assessment u/s 153A can
be made only on the basis of incriminating material. Since the AO had
not referred to any incriminating material found during the search based
on which addition had been made, it was held that the AO had no
jurisdiction to make addition under section 153A on following the
decision of Special Bench in All Cargo Global Logistics Ltd.
(Please click here for judgment)
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