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568 orders · Page 11 of 12
The High Court, respectfully agreeing with the reasoning of the Allahabad High Court in Ashok Kumar Agarwal vs. Union of India, the Rajasthan High Court in Bpip Infra Private Limited, and the Delhi High Court in Man Mohan Kohli vs. Assistant Commissioner of Income Tax & Anr., allowed all the Writ Petitions. The Court held that the Explanations A(a)(ii)/A(b) to the Notifications dated March 31, 2021, and April 27, 2021, are declared to be ultra vires the Relaxation Act, 2020, and thus bad in law and null and void. Consequently, all impugned notices issued under Section 148 of the Income Tax Act were quashed. The Assessing Officers were granted liberty to initiate fresh re-assessment proceedings in accordance with the relevant provisions of the Act as amended by the Finance Act, 2021, and after complying with the required formalities. The Court found that the Executive/Respondents/Revenue cannot use administrative power to issue Notifications under Section 3(1) of the Relaxation Act, 2020, to undermine the expression of Parliamentary supremacy in the form of an Act of Parliament, namely, the Finance Act, 2021. The ratio decidendi is that delegated legislation cannot override or defeat the plain enforcement of a statute enacted by Parliament, especially when the statute itself introduces new provisions with a clear effective date.
The High Court, respectfully agreeing with the reasoning of the Allahabad High Court in Ashok Kumar Agarwal, the Rajasthan High Court in Bpip Infra Private Limited, and the Delhi High Court in Man Mohan Kohli, allowed all the writ petitions. The Court declared Explanations A(a)(ii)/A(b) to the Notifications dated March 31, 2021, and April 27, 2021, as ultra vires the Relaxation Act, 2020, and consequently, bad in law and null and void. The Court reasoned that the Legislature introduced new provisions (Sections 147 to 151) via the Finance Act, 2021, effective April 1, 2021, and these new provisions must be complied with for reassessment notices issued after March 31, 2021. The executive power under the Relaxation Act does not extend to legislating on provisions or deferring the operation of substituted provisions enacted by Parliament. The Court found the revenue's reliance on Section 6 of the General Clauses Act untenable as the repeal was followed by a fresh legislation on the same subject, indicating an intention to destroy the old procedure. All impugned notices under Section 148 of the Income Tax Act were quashed. The Assessing Officers were granted liberty to initiate fresh reassessment proceedings in accordance with the relevant provisions of the Act as amended by the Finance Act, 2021, and after complying with legal formalities.
The High Court, respectfully agreeing with the reasoning of the Allahabad High Court in Ashok Kumar Agarwal, the Rajasthan High Court in Bpip Infra Private Limited, and the Delhi High Court in Man Mohan Kohli, allowed all the writ petitions. The Court declared Explanations A(a)(ii)/A(b) to the Notifications dated March 31, 2021, and April 27, 2021, as ultra vires the Relaxation Act, 2020, and consequently, bad in law and null and void. The Court reasoned that the Legislature introduced new provisions (Sections 147 to 151) via the Finance Act, 2021, effective April 1, 2021, and these new provisions must be complied with for reassessment notices issued after March 31, 2021. The executive power under the Relaxation Act does not extend to legislating on provisions or deferring the operation of substituted provisions enacted by Parliament. The Court found the revenue's reliance on Section 6 of the General Clauses Act untenable as the repeal was followed by a fresh legislation on the same subject, indicating an intention to destroy the old procedure. All impugned notices under Section 148 of the Income Tax Act were quashed. The Assessing Officers were granted liberty to initiate fresh reassessment proceedings in accordance with the relevant provisions of the Act as amended by the Finance Act, 2021, and after complying with legal formalities.
The High Court, respectfully agreeing with the reasoning of the Allahabad High Court in Ashok Kumar Agarwal, the Rajasthan High Court in Bpip Infra Private Limited, and the Delhi High Court in Man Mohan Kohli, allowed all the writ petitions. The Court declared Explanations A(a)(ii)/A(b) to the Notifications dated March 31, 2021, and April 27, 2021, as ultra vires the Relaxation Act, 2020, and consequently, bad in law and null and void. The Court reasoned that the Legislature introduced new provisions (Sections 147 to 151) via the Finance Act, 2021, effective April 1, 2021, and these new provisions must be complied with for reassessment notices issued after March 31, 2021. The executive power under the Relaxation Act does not extend to legislating on provisions or deferring the operation of substituted provisions enacted by Parliament. The Court found the revenue's reliance on Section 6 of the General Clauses Act untenable as the repeal was followed by a fresh legislation on the same subject, indicating an intention to destroy the old procedure. All impugned notices under Section 148 of the Income Tax Act were quashed. The Assessing Officers were granted liberty to initiate fresh reassessment proceedings in accordance with the relevant provisions of the Act as amended by the Finance Act, 2021, and after complying with legal formalities.
The High Court, respectfully agreeing with the reasoning of the Allahabad High Court in Ashok Kumar Agarwal, the Rajasthan High Court in Bpip Infra Private Limited, and the Delhi High Court in Man Mohan Kohli, allowed all the writ petitions. The Court declared Explanations A(a)(ii)/A(b) to the Notifications dated March 31, 2021, and April 27, 2021, as ultra vires the Relaxation Act, 2020, and consequently, bad in law and null and void. The Court reasoned that the Legislature introduced new provisions (Sections 147 to 151) via the Finance Act, 2021, effective April 1, 2021, and these new provisions must be complied with for reassessment notices issued after March 31, 2021. The executive power under the Relaxation Act does not extend to legislating on provisions or deferring the operation of substituted provisions enacted by Parliament. The Court found the revenue's reliance on Section 6 of the General Clauses Act untenable as the repeal was followed by a fresh legislation on the same subject, indicating an intention to destroy the old procedure. All impugned notices under Section 148 of the Income Tax Act were quashed. The Assessing Officers were granted liberty to initiate fresh reassessment proceedings in accordance with the relevant provisions of the Act as amended by the Finance Act, 2021, and after complying with legal formalities.
The High Court, respectfully agreeing with the reasoning of the Allahabad High Court in Ashok Kumar Agarwal, the Rajasthan High Court in Bpip Infra Private Limited, and the Delhi High Court in Man Mohan Kohli, allowed all the writ petitions. The Court declared Explanations A(a)(ii)/A(b) to the Notifications dated March 31, 2021, and April 27, 2021, as ultra vires the Relaxation Act, 2020, and consequently, bad in law and null and void. The Court reasoned that the Legislature introduced new provisions (Sections 147 to 151) via the Finance Act, 2021, effective April 1, 2021, and these new provisions must be complied with for reassessment notices issued after March 31, 2021. The executive power under the Relaxation Act does not extend to legislating on provisions or deferring the operation of substituted provisions enacted by Parliament. The Court found the revenue's reliance on Section 6 of the General Clauses Act untenable as the repeal was followed by a fresh legislation on the same subject, indicating an intention to destroy the old procedure. All impugned notices under Section 148 of the Income Tax Act were quashed. The Assessing Officers were granted liberty to initiate fresh reassessment proceedings in accordance with the relevant provisions of the Act as amended by the Finance Act, 2021, and after complying with legal formalities.
The High Court, respectfully agreeing with the reasoning of the Allahabad High Court in Ashok Kumar Agarwal, the Rajasthan High Court in Bpip Infra Private Limited, and the Delhi High Court in Man Mohan Kohli, allowed all the writ petitions. The Court declared Explanations A(a)(ii)/A(b) to the Notifications dated March 31, 2021, and April 27, 2021, as ultra vires the Relaxation Act, 2020, and consequently, bad in law and null and void. The Court reasoned that the Legislature introduced new provisions (Sections 147 to 151) via the Finance Act, 2021, effective April 1, 2021, and these new provisions must be complied with for reassessment notices issued after March 31, 2021. The executive power under the Relaxation Act does not extend to legislating on provisions or deferring the operation of substituted provisions enacted by Parliament. The Court found the revenue's reliance on Section 6 of the General Clauses Act untenable as the repeal was followed by a fresh legislation on the same subject, indicating an intention to destroy the old procedure. All impugned notices under Section 148 of the Income Tax Act were quashed. The Assessing Officers were granted liberty to initiate fresh reassessment proceedings in accordance with the relevant provisions of the Act as amended by the Finance Act, 2021, and after complying with legal formalities.
The High Court, respectfully agreeing with the reasoning of the Allahabad High Court in Ashok Kumar Agarwal, the Rajasthan High Court in Bpip Infra Private Limited, and the Delhi High Court in Man Mohan Kohli, allowed all the writ petitions. The Court declared Explanations A(a)(ii)/A(b) to the Notifications dated March 31, 2021, and April 27, 2021, as ultra vires the Relaxation Act, 2020, and consequently, bad in law and null and void. The Court reasoned that the Legislature introduced new provisions (Sections 147 to 151) via the Finance Act, 2021, effective April 1, 2021, and these new provisions must be complied with for reassessment notices issued after March 31, 2021. The executive power under the Relaxation Act does not extend to legislating on provisions or deferring the operation of substituted provisions enacted by Parliament. The Court found the revenue's reliance on Section 6 of the General Clauses Act untenable as the repeal was followed by a fresh legislation on the same subject, indicating an intention to destroy the old procedure. All impugned notices under Section 148 of the Income Tax Act were quashed. The Assessing Officers were granted liberty to initiate fresh reassessment proceedings in accordance with the relevant provisions of the Act as amended by the Finance Act, 2021, and after complying with legal formalities.
The High Court, respectfully agreeing with the reasoning of the Allahabad High Court in Ashok Kumar Agarwal, the Rajasthan High Court in Bpip Infra Private Limited, and the Delhi High Court in Man Mohan Kohli, allowed all the writ petitions. The Court declared Explanations A(a)(ii)/A(b) to the Notifications dated March 31, 2021, and April 27, 2021, as ultra vires the Relaxation Act, 2020, and consequently, bad in law and null and void. The Court reasoned that the Legislature introduced new provisions (Sections 147 to 151) via the Finance Act, 2021, effective April 1, 2021, and these new provisions must be complied with for reassessment notices issued after March 31, 2021. The executive power under the Relaxation Act does not extend to legislating on provisions or deferring the operation of substituted provisions enacted by Parliament. The Court found the revenue's reliance on Section 6 of the General Clauses Act untenable as the repeal was followed by a fresh legislation on the same subject, indicating an intention to destroy the old procedure. All impugned notices under Section 148 of the Income Tax Act were quashed. The Assessing Officers were granted liberty to initiate fresh reassessment proceedings in accordance with the relevant provisions of the Act as amended by the Finance Act, 2021, and after complying with legal formalities.
The High Court, respectfully agreeing with the reasoning of the Allahabad High Court in Ashok Kumar Agarwal, the Rajasthan High Court in Bpip Infra Private Limited, and the Delhi High Court in Man Mohan Kohli, allowed all the writ petitions. The Court declared Explanations A(a)(ii)/A(b) to the Notifications dated March 31, 2021, and April 27, 2021, as ultra vires the Relaxation Act, 2020, and consequently, bad in law and null and void. The Court reasoned that the Legislature introduced new provisions (Sections 147 to 151) via the Finance Act, 2021, effective April 1, 2021, and these new provisions must be complied with for reassessment notices issued after March 31, 2021. The executive power under the Relaxation Act does not extend to legislating on provisions or deferring the operation of substituted provisions enacted by Parliament. The Court found the revenue's reliance on Section 6 of the General Clauses Act untenable as the repeal was followed by a fresh legislation on the same subject, indicating an intention to destroy the old procedure. All impugned notices under Section 148 of the Income Tax Act were quashed. The Assessing Officers were granted liberty to initiate fresh reassessment proceedings in accordance with the relevant provisions of the Act as amended by the Finance Act, 2021, and after complying with legal formalities.
The High Court, respectfully agreeing with the reasoning of the Allahabad High Court in Ashok Kumar Agarwal, the Rajasthan High Court in Bpip Infra Private Limited, and the Delhi High Court in Man Mohan Kohli, allowed all the writ petitions. The Court declared Explanations A(a)(ii)/A(b) to the Notifications dated March 31, 2021, and April 27, 2021, as ultra vires the Relaxation Act, 2020, and consequently, bad in law and null and void. The Court reasoned that the Legislature introduced new provisions (Sections 147 to 151) via the Finance Act, 2021, effective April 1, 2021, and these new provisions must be complied with for reassessment notices issued after March 31, 2021. The executive power under the Relaxation Act does not extend to legislating on provisions or deferring the operation of substituted provisions enacted by Parliament. The Court found the revenue's reliance on Section 6 of the General Clauses Act untenable as the repeal was followed by a fresh legislation on the same subject, indicating an intention to destroy the old procedure. All impugned notices under Section 148 of the Income Tax Act were quashed. The Assessing Officers were granted liberty to initiate fresh reassessment proceedings in accordance with the relevant provisions of the Act as amended by the Finance Act, 2021, and after complying with legal formalities.
The High Court, respectfully agreeing with the reasoning of the Allahabad High Court in Ashok Kumar Agarwal, the Rajasthan High Court in Bpip Infra Private Limited, and the Delhi High Court in Man Mohan Kohli, allowed all the writ petitions. The Court declared Explanations A(a)(ii)/A(b) to the Notifications dated March 31, 2021, and April 27, 2021, as ultra vires the Relaxation Act, 2020, and consequently, bad in law and null and void. The Court reasoned that the Legislature introduced new provisions (Sections 147 to 151) via the Finance Act, 2021, effective April 1, 2021, and these new provisions must be complied with for reassessment notices issued after March 31, 2021. The executive power under the Relaxation Act does not extend to legislating on provisions or deferring the operation of substituted provisions enacted by Parliament. The Court found the revenue's reliance on Section 6 of the General Clauses Act untenable as the repeal was followed by a fresh legislation on the same subject, indicating an intention to destroy the old procedure. All impugned notices under Section 148 of the Income Tax Act were quashed. The Assessing Officers were granted liberty to initiate fresh reassessment proceedings in accordance with the relevant provisions of the Act as amended by the Finance Act, 2021, and after complying with legal formalities.
The High Court, respectfully agreeing with the reasoning of the Allahabad High Court in Ashok Kumar Agarwal, the Rajasthan High Court in Bpip Infra Private Limited, and the Delhi High Court in Man Mohan Kohli, allowed all the writ petitions. The Court declared Explanations A(a)(ii)/A(b) to the Notifications dated March 31, 2021, and April 27, 2021, as ultra vires the Relaxation Act, 2020, and consequently, bad in law and null and void. The Court reasoned that the Legislature introduced new provisions (Sections 147 to 151) via the Finance Act, 2021, effective April 1, 2021, and these new provisions must be complied with for reassessment notices issued after March 31, 2021. The executive power under the Relaxation Act does not extend to legislating on provisions or deferring the operation of substituted provisions enacted by Parliament. The Court found the revenue's reliance on Section 6 of the General Clauses Act untenable as the repeal was followed by a fresh legislation on the same subject, indicating an intention to destroy the old procedure. All impugned notices under Section 148 of the Income Tax Act were quashed. The Assessing Officers were granted liberty to initiate fresh reassessment proceedings in accordance with the relevant provisions of the Act as amended by the Finance Act, 2021, and after complying with legal formalities.
The High Court, respectfully agreeing with the reasoning of the Allahabad High Court in Ashok Kumar Agarwal, the Rajasthan High Court in Bpip Infra Private Limited, and the Delhi High Court in Man Mohan Kohli, allowed all the writ petitions. The Court declared Explanations A(a)(ii)/A(b) to the Notifications dated March 31, 2021, and April 27, 2021, as ultra vires the Relaxation Act, 2020, and consequently, bad in law and null and void. The Court reasoned that the Legislature introduced new provisions (Sections 147 to 151) via the Finance Act, 2021, effective April 1, 2021, and these new provisions must be complied with for reassessment notices issued after March 31, 2021. The executive power under the Relaxation Act does not extend to legislating on provisions or deferring the operation of substituted provisions enacted by Parliament. The Court found the revenue's reliance on Section 6 of the General Clauses Act untenable as the repeal was followed by a fresh legislation on the same subject, indicating an intention to destroy the old procedure. All impugned notices under Section 148 of the Income Tax Act were quashed. The Assessing Officers were granted liberty to initiate fresh reassessment proceedings in accordance with the relevant provisions of the Act as amended by the Finance Act, 2021, and after complying with legal formalities.
The High Court, respectfully agreeing with the reasoning of the Allahabad High Court in Ashok Kumar Agarwal, the Rajasthan High Court in Bpip Infra Private Limited, and the Delhi High Court in Man Mohan Kohli, allowed all the writ petitions. The Court declared Explanations A(a)(ii)/A(b) to the Notifications dated March 31, 2021, and April 27, 2021, as ultra vires the Relaxation Act, 2020, and consequently, bad in law and null and void. The Court reasoned that the Legislature introduced new provisions (Sections 147 to 151) via the Finance Act, 2021, effective April 1, 2021, and these new provisions must be complied with for reassessment notices issued after March 31, 2021. The executive power under the Relaxation Act does not extend to legislating on provisions or deferring the operation of substituted provisions enacted by Parliament. The Court found the revenue's reliance on Section 6 of the General Clauses Act untenable as the repeal was followed by a fresh legislation on the same subject, indicating an intention to destroy the old procedure. All impugned notices under Section 148 of the Income Tax Act were quashed. The Assessing Officers were granted liberty to initiate fresh reassessment proceedings in accordance with the relevant provisions of the Act as amended by the Finance Act, 2021, and after complying with legal formalities.
The High Court, respectfully agreeing with the reasoning of the Allahabad High Court in 'Ashok Kumar Agarwal –vs- Union of India', the Rajasthan High Court in 'Bpip Infra Private Limited', and the Delhi High Court in 'Man Mohan Kohli –vs- Assistant Commissioner of Income Tax & Anr.', allowed the writ petitions. The Court held that the Executive/Respondents/Revenue cannot use administrative power to issue Notifications under Section 3(1) of the Relaxation Act, 2020, to undermine Parliamentary supremacy as expressed in the Finance Act, 2021. The Court found that the Relaxation Act does not grant the power to extend the erstwhile Sections 147 to 151 beyond March 31, 2021, or to defer the operation of the substituted provisions enacted by the Finance Act, 2021. Consequently, Explanations A(a)(ii)/A(b) to the Notifications dated March 31, 2021, and April 27, 2021, were declared ultra vires the Relaxation Act, 2020, and thus void. All impugned notices under Section 148 of the Income Tax Act were quashed. The Assessing Officers were granted liberty to initiate fresh reassessment proceedings in accordance with the relevant provisions of the Act as amended by the Finance Act, 2021, and after complying with the required formalities. No issue was expressly left undecided.
The Calcutta High Court, respectfully agreeing with the reasoning of the Allahabad High Court, Rajasthan High Court, and Delhi High Court, allowed the writ petitions. The Court declared Explanations A(a)(ii)/A(b) to the Notifications dated March 31, 2021, and April 27, 2021, as ultra vires the Relaxation Act, 2020, and therefore bad in law and null and void. The Court held that the Executive/Respondents/Revenue cannot use administrative power to issue notifications under Section 3(1) of the Relaxation Act, 2020, to undermine Parliamentary supremacy as expressed in the Finance Act, 2021. Consequently, all impugned reassessment notices issued under Section 148 of the Income Tax Act were quashed. The Assessing Officers were granted liberty to initiate fresh reassessment proceedings in accordance with the relevant provisions of the Act as amended by the Finance Act, 2021, and after complying with the legal formalities.
The High Court held that the income tax returns for assessment years 2014-15 and 2015-16, filed prior to the deceased's death, are statutory documents and should be relied upon to determine income, even if the tax payment was made posthumously. The Tribunal's reliance on V. Subbulakshmi was distinguished as the IT return in that case was filed after death. The Court cited Kalpanaraj vs. Tamil Nadu State Transport Corporation (2015) 2 SCC 764 and Malarvizhi and others vs. United India Insurance Company Limited and Another (2020) 4 SCC 228, emphasizing the importance of IT returns. The income from the assessment year 2015-16 (Rs. 3,60,000/-) less tax paid (Rs. 9,735/-) was taken as the actual income (Rs. 3,50,265/-). For future prospects, following National Insurance Company Limited vs. Pranay Sethi and Others (2017 ACJ 2700), 40% was applied to the annual income of the deceased, as he was 24 years old and self-employed. The total compensation was recalculated to Rs. 44,43,348/-, and the insurance company was directed to pay the balance amount of Rs. 27,93,348/- with interest.
The High Court dismissed the appeal filed by the revenue under Section 260A of the Income Tax Act, 1961, on the ground of low tax effect. The court recorded the submission made by the learned standing counsel for the appellant/revenue that the appeal could not be prosecuted on this basis. Consequently, the substantial questions of law that were raised in the appeal were left open and not decided on merits. The operative direction was the dismissal of the appeal.
The High Court recorded the submission of the learned standing counsel for the revenue that the appeal cannot be prosecuted due to low tax effect. Accordingly, the appeal was dismissed on this ground. The substantial questions of law, which were raised in the appeal, were left open. The Tribunal's order was not adjudicated on its merits.
The tribunal held that proceedings initiated against a dead person are invalid, even if the Assessing Officer was initially unaware of the death. Simply asking the legal representative to join the proceeding after the fact does not validate it.
The High Court dismissed the appeal filed by the revenue under Section 260A of the Income Tax Act, 1961. The dismissal was based on the submission made by the revenue's learned standing counsel that the appeal could not be prosecuted due to a low tax effect. The Court recorded this submission and consequently dismissed the appeal on this ground. As a result of the dismissal on the preliminary ground of low tax effect, the substantial questions of law that were raised in the appeal were left open and were not decided on merits. The application for stay filed by the revenue was also dismissed as a consequence. The ratio decidendi is that an appeal can be withdrawn or not pressed by the revenue on grounds of low tax effect, leading to its dismissal without adjudication of the substantial questions of law.
The Tribunal noted the submission made by the learned standing counsel for the appellant/revenue that the appeal could not be prosecuted on the ground of low tax effect. Recording this submission, the appeal was dismissed on the ground of low tax effect. Consequently, the substantial questions of law that were raised in the appeal were left open and not decided on merits. No specific finding was given on the merits of the case, nor was any principle established for future citation. The operative direction was the dismissal of the appeal.
The High Court dismissed the appeal filed by the revenue on the ground of low tax effect, based on the submission made by the revenue's learned standing counsel. Consequently, the substantial questions of law that were raised in the appeal were left open and not decided on merits. The operative direction was the dismissal of the appeal. No specific issue was expressly left undecided, as the entire appeal was disposed of on a procedural ground.
The High Court dismissed the appeal filed by the revenue on the ground of low tax effect, as submitted by the revenue's learned standing counsel. Consequently, the substantial questions of law, which were raised in the appeal, were left open and not decided on merits. The operative direction was the dismissal of the appeal. No issue was expressly left undecided as the appeal itself was not adjudicated.
The High Court recorded the submission made by the learned standing counsel for the revenue that the appeal could not be prosecuted due to a low tax effect. Based on this submission, the Court dismissed the appeal on the ground of low tax effect. Consequently, the substantial questions of law that were raised in the appeal were left open and not decided on merits. No specific reasoning beyond the low tax effect ground was provided for the dismissal.
The High Court, upon hearing the submission from the learned standing counsel for the appellant/revenue, recorded that the appeal could not be prosecuted on the ground of low tax effect. Consequently, the appeal was dismissed on this ground. The substantial questions of law that were raised in the appeal were left open and not decided on merits. No operative directions were issued, and no specific relief was granted or denied on the substantive issues.
The High Court, upon hearing the submission from the learned standing counsel for the appellant/revenue, recorded that the appeal cannot be prosecuted on the ground of low tax effect. Accordingly, the appeal was dismissed on this basis. The substantial questions of law that were raised in the appeal were expressly left undecided. The application for stay filed by the Revenue was also dismissed as a consequence of the appeal being dismissed. The operative direction was the dismissal of the appeal and the stay application.
The High Court held that the ITAT's clarification in the miscellaneous application order indicated that profit estimation should apply to the entire turnover. Therefore, the Assessing Officer's interpretation of applying it only to disclosed income was incorrect.
The Tribunal held that the assessee was entitled to exemption under Section 10B as it had obtained necessary approvals and a green card, and the CBDT clarification supported the validity of such approvals. The Tribunal also granted relief under Section 10A, stating the department cannot take advantage of the assessee's mistake in not claiming it initially.
The Tribunal rightly held that the Commissioner exceeded his jurisdiction by considering issues not included in the show cause notice. Therefore, the cancellation of the trust's registration was not justified on the grounds presented.
The High Court recorded the submission of the learned standing counsel for the appellant/revenue that the appeal cannot be prosecuted on the ground of low tax effect. Based on this submission, the Court dismissed the appeal on the ground of low tax effect. Consequently, the substantial questions of law that were raised in the appeal were left open and not decided on merits. The operative direction was the dismissal of the appeal.
The High Court upheld the ITAT's decision, finding that the revenue failed to controvert the evidence presented to the Tribunal. The court concluded that the PCIT had not exercised his jurisdiction under Section 263 independently.
The Tribunal held that the assessee was entitled to the deduction as the purchases were made from producers and covered by Rule 6DD. The disallowance by the Assessing Officer was not justified solely based on returned notices.