I. Today's Headlines:    

II.  Direct Tax Case laws:

(Delhi ITAT Judgment - Contribution by CA. Piyush Kaushik)

1. ACIT Cen. Cir.-IX vs. Shri Manoj Narain Aggarwal, ITA Nos. 5518 to 5524/Del/2012, Date of Order : 30.01.2014, ITAT – Delhi

No addition can be made pursuant to section 153A/153C proceedings in the absence of any incriminating material or inquiries based on such material.

From facts also it emerges that assessee owns a fairly large agricultural holding known as Prag Farms. Agricultural income has been returned and accepted by department year after year. Confirmation from agricultural tenant is on record. It has been doubted by AO on some conjectures like computer print, in that case he may have examined the tenant. Without carrying out such exercise AO cannot reject documentary evidence on surmises and conjectures. Assessee has supported his claim based on relevant agricultural record. The tenant has confirmed that the agricultural expenses were borne by him and not by the assessee. Therefore, no adverse inference can be drawn to dislodge the explanation of the assessee.

Under S. 153A/C assessments additions cannot be made unless they are based on any incriminating material or inquiries based on such material. It clearly emerges from record that there is neither reference nor reliance on any incriminating material. Besides there is no reference to any inquiries conducted by AO based on any incriminating material.

(Please click here for judgment)

2. Commissioner of Income-tax, Gorakhpur v. All India Children Care & Educational Development Society*, IT APPEAL NO. 89 OF 2003, Date of Order : 30.05.2013, Allahabad High Court.

Tribunal is not a competent authority to adjudicate upon jurisdiction when issue about jurisdiction has not been raised before Assessing Authority

The question of jurisdiction could have been raised before the Assessing Officer within the period of one month from the date of filing of return as envisaged under sub-section (3)(a) of section 124, but it was not raised. Even after assessment before the first appellate authority, any such plea was not put forward. No objection regarding jurisdiction or otherwise was raised during all these proceedings. The Assessing Officer has passed the assessment order on the basis of the return filed by the assessee and details furnished by the assessee during the proceedings in response to notices under section 143(2) and 143(1).

It is held that the question of jurisdiction of the assessing authority in view of section 124 could not have been raised by the assessee before the Tribunal and the Tribunal is not the competent authority to adjudicate upon when it was not raised in terms of section 124 before the assessing authority.

(Please click here for judgment)

  III.  Useful Article:

[ Contribution by CA Sanjeev Singhal and contributor is available at sanjeev.singhal@skaca.in ]

 Golden Rule:

  "All that is necessary to break the spell of inertia and frustration is this:

Act as if it were impossible to fail."

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