CPC 143(1) adjustments quashed by courts clearly establish that intimation under section 143(1) is limited to prima facie adjustments and cannot decide debatable issues or make mechanical additions. Mechanical adjustments under section 143(1) have therefore been struck down consistently. Legal issue involved Whether CPC can: The settled position is that 143(1) is not an assessment. … Read more
(Sections 270A / 271AAC / defective show cause) Penalty quashed for procedural lapses form a consistent theme in income-tax jurisprudence, as courts have repeatedly held that penalty proceedings are not automatic and must strictly comply with statutory procedure. If procedure fails, penalty fails. Why Procedural Lapses Are Fatal to Penalty Proceedings Penalty provisions under the … Read more
Reassessment quashed invalid approval section 151 cases establish that sanction is not an empty formality and mechanical approval vitiates jurisdiction. Reassessment quashed for invalid approval under section 151 is a settled legal position where sanction is granted mechanically without independent application of mind by the approving authority. Approval under section 151 is not a mere … Read more
(Inadequate Enquiry vs. No Enquiry) Section 263 revision quashed cases clearly establish that inadequate enquiry is not the same as no enquiry, and revision under section 263 cannot be invoked merely because the PCIT holds a different view. Section 263 is routinely invoked by the Principal Commissioner, often mechanically. Courts have repeatedly clarified that inadequate … Read more
Reassessment quashed for change of opinion is now a settled position in income-tax law. Courts have repeatedly held that where an issue was examined during original assessment, reopening under Section 148 based on the same material is impermissible. If there is no fresh tangible material, reassessment fails. Legal issue involved Whether reassessment proceedings are valid … Read more
Reassessment time barred is one of the strongest jurisdictional grounds to challenge reopening proceedings. Courts have consistently held that reassessment notices issued beyond the prescribed limitation period are void ab initio, irrespective of merits. If limitation fails, jurisdiction fails. Legal Issue Involved in Reassessment Time Barred Cases Whether reassessment proceedings are valid when: Courts have … Read more
Reassessment based on audit objection has repeatedly been struck down by courts where the Assessing Officer has acted mechanically without forming an independent belief. Indian courts have consistently held that an audit opinion cannot substitute the statutory requirement of “reason to believe” for reopening assessments. Reassessment proceedings are frequently initiated on the basis of audit … Read more
Section 148A reassessment quashed by courts has become a consistent judicial trend where the mandatory procedure under section 148A of the Income-tax Act, 1961 is not properly followed. After the introduction of section 148A, reassessment proceedings are no longer automatic, and strict procedural safeguards have been built into the statute to protect taxpayers from arbitrary … Read more