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14.12.2010 - Recent Updates as on 14.12.2010
Tuesday, December 14, 2010

1.   COMMISSIONER OF INCOME TAX VS.  LATE SH. RAJ PAL BHATIA, ITA 276 OF 2009, DATE OF DECISION: 29.11.2010,  HIGH COURT OF DELHI

Before invoking the provisions of Section 158 BD of the Act, the Assessing Officer of the person searched u/s 132 (1) must satisfy himself that some undisclosed income belongs to a person other than the persons with respect to whom search was made under Section 132 (1) of the Act. Such satisfaction must be based on the material found in the course of search. In the absence of any such satisfaction (which is to be recorded in writing) the concerned Assessing Officer does not get any jurisdiction to assess that other person by invoking the section 158 BD of the Act. Further, the satisfaction of the Assessing Officer has to be in respect of the following aspects:- 

i) there should be “undisclosed income” within the meaning of section 158 (b) referable to the assets or books/documents found seized/requisitioned;

ii) there should a finding by the Assessing Officer that there was undisclosed income in such assets or books of account or documents of the searched person;

iii) and that such undisclosed income belonged to the person other than the one searched.  

Therefore no Assessment u/s 158BD can be invoked merely on the basis of Statement of a person in whose premises search was conducted as the statement is not in the nature of document which was found during search.

Therefore, it cannot be said that the statement was „seized during the search and thus, would not qualify the expression “document” having been seized during the search. In such a scenario, proper course of action was reassessment u/s 147 read with section 148 of the Act. 

(Please click here for judgment)

   

2.   COMMISSIONER OF INCOME TAX  Vs. A.T. INVOIFIN INDIA (P) LTD., ITA 811 OF 2007, DATE OF JUDGEMENT : 29.11.2010, HIGH COURT OF DELHI 

Where the stipulated date of filing the return of income as prescribed under Section 139 (1)of the Act is over and return is not filed, it has to be normally held that the income has not been disclosed for the purpose of this Act.  

(b) If the search takes place under Section 132 of the Act and by that date return is not filed, and the date of filing the normal return has expired, filing of the return thereafter under Section 139 (4) of the Act would be of no consequence for the applicability of Chapter XIV B of the Act.  

(c) Even if the return is not filed but the assessee is able to demonstrate that he had disclosed his income to the department before the date of search in the some manner or the other, it would not be treated undisclosed income for the purpose of assessment in accordance with the Chapter XIV B of the Act.

(d) Payment of advance tax would be one such step which would warrant inference that the assessee had disclosed his income to the department.  

(Please click here for judgment) 

    

What's New 

  • ITInst-09-10-Processing of ITR-1 and ITR-2 in AY 2009-10-  Hikes TDS credit from Rs 3 lakh to Rs 4 lakh  (Click for detail) 

  • ITInst-08-10-Prescribes parameters for processing of E-TDS returns  (Click for detail)

  • RBI/2010-11/311 - Circular No. 24 - Prevention of Money-laundering  (Click for detail)

  • RBI/2010-11/309 - Circular No. 23 - Exim Bank's Line of Credit of USD 42 million to the Govt of Congo  (Click for detail) 

                

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