Union of India v. Ajit Jain

260 ITR 80Supreme Court of India2003#988 most cited

What is Union of India v. Ajit Jain authority for?

An assessment under section 153A is void ab initio if the search conducted under section 132(1) is invalid or based on suspicion rather than reasonable belief.

109

judgments rely on this decision, according to BharatTax’s citation analysis of 366,339 Indian tax judgments — from 2016 to 2025.

Also referred to as

Union of India v Ajit Jain · section 132(1)(a) · section 132(2) · section 153A · invalid search · void assessment · reasonable belief · suspicion

Also reported as

129 Taxmann 74

Sections most often in play

Section 153ASection 132Section 143(3)Section 234BSection 234CSection 234ASection 250Section 133(6)

Issues it is cited on

section 132(1)(a)section 132(2)warrant of authorisationillegal paymentsection 153a proceedingsbusiness transfer agreementsection 2(31)explanation to section 37section 158bdsection 53agoing concernsection 131(1)

Judgments citing Union of India v. Ajit Jain

M/S. Eagle Traders & Logistics, Bellary vs. Deputy Commissioner of Income Tax, Central Circle- 2(3), Bangalore

Accordingly, the appeals filed by the assessee are allowed in above terms

ITA 237/BANG/2020[2011-12]Status: DisposedITAT Bangalore29 May 2025AY 2011-12

Bench: Shri. Laxmi Prasad Sahu & Shri. Keshav Dubey

For Appellant: Shri. Prashanth G S, CAFor Respondent: Ms. Neha Sahay, JCIT(DR)(ITAT), Bangalore
Section 132(1)(a)Section 132(2)Section 153ASection 153CSection 153DSection 292B

…f but purely on the suspicion and therefore, the action under section 132(2) is bad in law and consequent assessment is null and void-ab-initio on the parity of the ratio of the decision of the Hon’ble Apex Court in the case of UOI vs. Ajith Jain, reported in 260 ITR 80. g) The authorities below failed to discharge the burden of proving that there is a valid initiation of search under section 132(1)(a), (b) & (c) of the Act, its execution and ITA Nos.234 to 237/Bang/2020 Page 3 of 41 its completion in accordance with law to render the proceedings valid under the facts and circumstances of the case. 3 Prior Approv…

M/S. Eagle Traders & Logistics, Bellary vs. Deputy Commissioner of Income Tax, Central Circle- 2(3), Bangalore

Accordingly, the appeals filed by the assessee are allowed in above terms

ITA 236/BANG/2020[2010-11]Status: DisposedITAT Bangalore29 May 2025AY 2010-11

Bench: Shri. Laxmi Prasad Sahu & Shri. Keshav Dubey

For Appellant: Shri. Prashanth G S, CAFor Respondent: Ms. Neha Sahay, JCIT(DR)(ITAT), Bangalore
Section 132(1)(a)Section 132(2)Section 153ASection 153CSection 153DSection 292B

…f but purely on the suspicion and therefore, the action under section 132(2) is bad in law and consequent assessment is null and void-ab-initio on the parity of the ratio of the decision of the Hon’ble Apex Court in the case of UOI vs. Ajith Jain, reported in 260 ITR 80. g) The authorities below failed to discharge the burden of proving that there is a valid initiation of search under section 132(1)(a), (b) & (c) of the Act, its execution and ITA Nos.234 to 237/Bang/2020 Page 3 of 41 its completion in accordance with law to render the proceedings valid under the facts and circumstances of the case. 3 Prior Approv…

M/S. Eagle Traders & Logistics, Bellary vs. Deputy Commissioner of Income Tax, Central Circle- 2(3), Bangalore

ITA 235/BANG/2020[2009-10]Status: DisposedITAT Bangalore29 May 2025AY 2009-10

Bench: Shri. Laxmi Prasad Sahu & Shri. Keshav Dubey

For Appellant: Shri. Prashanth G S, CAFor Respondent: Ms. Neha Sahay, JCIT(DR)(ITAT), Bangalore
Section 132(1)(a)Section 132(2)Section 153ASection 153CSection 153DSection 292B

…f but purely on the suspicion and therefore, the action under section 132(2) is bad in law and consequent assessment is null and void-ab-initio on the parity of the ratio of the decision of the Hon'ble Apex Court in the case of UOI vs. Ajith Jain, reported in 260 ITR 80. g) The authorities below failed to discharge the burden of proving that there is a valid initiation of search under section 132(1)(a), (b) & (c) of the Act, its execution and completion in accordance with law to render the proceedings valid under the facts and circumstances of the case. 3 Prior Approval of the Additional Commissioner: a) The prio…

M/S. Eagle Traders & Logistics, Bellary vs. Deputy Commissioner of Income Tax, Central Circle- 2(3), Bangalore

Accordingly, the appeals filed by the assessee are allowed in above terms

ITA 234/BANG/2020[2008-09]Status: DisposedITAT Bangalore29 May 2025AY 2008-09

Bench: Shri. Laxmi Prasad Sahu & Shri. Keshav Dubey

For Appellant: Shri. Prashanth G S, CAFor Respondent: Ms. Neha Sahay, JCIT(DR)(ITAT), Bangalore
Section 132(1)(a)Section 132(2)Section 153ASection 153CSection 153DSection 292B

…f but purely on the suspicion and therefore, the action under section 132(2) is bad in law and consequent assessment is null and void-ab-initio on the parity of the ratio of the decision of the Hon’ble Apex Court in the case of UOI vs. Ajith Jain, reported in 260 ITR 80. g) The authorities below failed to discharge the burden of proving that there is a valid initiation of search under section 132(1)(a), (b) & (c) of the Act, its execution and ITA Nos.234 to 237/Bang/2020 Page 3 of 41 its completion in accordance with law to render the proceedings valid under the facts and circumstances of the case. 3 Prior Approv…

Sri. Kumaraswamy Mineral Exports Private Limited., Bengaluru vs. Deputy Commissioner of Income Tax, Central Circle-1(1), Bengaluru

In the result Ground no 9 to 14 are allowed and ld AO is directed to delete the addition of undisclosed closing stock

ITA 1062/BANG/2024[2013-14]Status: DisposedITAT Bangalore25 Apr 2025AY 2013-14

Bench: Shri Prashant Maharishi & Shri Keshav Dubeyassessment Year: 2013-14

For Appellant: Shri V. Chandrashekar &
Section 132Section 153ASection 250

…n and therefore, the action under section 132[2] is bad in law [224 ITR 19 (SC)] and consequent assessment under section 153A is null and void-ab-inito on the parity of the ratio of the decision of the Hon'ble Apex Court in the case of Ajith Jain, reported in 260 ITR 80. [iii].That the learned authorities have not discharged the burden of proving that there is a valid search under section 132 [1] [a], [b] Et [c] of the Act, and consequently the assumption of jurisdiction to make an Page 3 of 27 assessment under section 153A of the Act is untenable in law. 4. The learned Commissioner of Income-tax [Appeals], fail…

Deputy Commissioner of Income-Tax, Queens Road, Bengaluru vs. Shri Kempareddy Govindraju, Domlur, Bengaluru

ITA 1292/BANG/2024[2016-17]Status: DisposedITAT Bangalore31 Jan 2025AY 2016-17

Bench: Shri Laxmi Prasad Sahu & Shri Soundarajan K

For Appellant: Shri. V. Chandrasekhar, ARFor Respondent: Shri. Sridhar E, CIT(DR)(ITAT), Bangalore
Section 131(1)Section 132Section 132(1)Section 143(3)Section 153ASection 250

…and therefore, the action under section 132[2] is bad in law [224 ITR 19 (SC)] and consequent assessment under section 153A is null and void-ab-initio on the parity of the ratio of the decision of the Hon’ble Apex Court in the case of Ajith Jain, reported in 260 ITR 80. iii. The authorities below have not discharged the burden of proving that there is a valid search under section 132 [1] [a], [b] and [c] of the Act, and consequently the assumption of jurisdiction to make an assessment under section 153A of the Act is untenable in law. iv. The learned CIT(A) ought to have appreciated that the very search proceedi…

Deputy Commissioner of Income-Tax, Central Circle-2(3), Benglauru vs. Shri Kempareddy Govindraju, Domlur, Bengaluru

In the result the appeals of the assessee in ITA No’s 1022 to 1024/ Bang/ 2024, for the Assessment Years 2014-15, 2015-16 and 2016-17 are allowed and the appeals of the Revenue in ITA Nos

ITA 1291/BANG/2024[2015-16]Status: DisposedITAT Bangalore31 Jan 2025AY 2015-16

Bench: Shri Laxmi Prasad Sahu & Shri Soundarajan K

For Appellant: Shri. V. Chandrasekhar, ARFor Respondent: Shri. Sridhar E, CIT(DR)(ITAT), Bangalore
Section 131(1)Section 132Section 132(1)Section 143(3)Section 153ASection 250

…and therefore, the action under section 132[2] is bad in law [224 ITR 19 (SC)] and consequent assessment under section 153A is null and void-ab-initio on the parity of the ratio of the decision of the Hon’ble Apex Court in the case of Ajith Jain, reported in 260 ITR 80. iii. The authorities below have not discharged the burden of proving that there is a valid search under section 132 [1] [a], [b] and [c] of the Act, and consequently the assumption of jurisdiction to make an assessment under section 153A of the Act is untenable in law. iv. The learned CIT(A) ought to have appreciated that the very search proceedi…

Deputy Commissioner of Income Tax, Central Circle-2(3), Queens Road, Bengaluru vs. Shri Kempareddy Govindraju, Domlur, Bengaluru

In the result the appeals of the assessee in ITA No’s 1022 to

ITA 1290/BANG/2024[2014-15]Status: DisposedITAT Bangalore31 Jan 2025AY 2014-15

Bench: Shri Laxmi Prasad Sahu

For Appellant: ITA Nos.1021 to 1024/Bang/2024
Section 131(1)Section 132Section 132(1)Section 143(3)Section 153ASection 250

…and therefore, the action under section 132[2] is bad in law [224 ITR 19 (SC)] and consequent assessment under section 153A is null and void-ab-initio on the parity of the ratio of the decision of the Hon’ble Apex Court in the case of Ajith Jain, reported in 260 ITR 80. iii. The authorities below have not discharged the burden of proving that there is a valid search under section 132 [1] [aj, [b] and [c] of the Act, and consequently the assumption of jurisdiction to make an assessment under section 153A of the Act is untenable in law. iv. The learned CIT(A) ought to have appreciated that the very search procee…

Shri. Kempareddy Govindraj, Bengaluru vs. Assistant Commissioner of Income Tax, Central Circle-2(3), Bengaluru

In the result the appeals of the assessee in ITA No’s 1022 to

ITA 1024/BANG/2024[2016-17]Status: DisposedITAT Bangalore31 Jan 2025AY 2016-17

Bench: Shri Laxmi Prasad Sahu

For Appellant: ITA Nos.1021 to 1024/Bang/2024
Section 131(1)Section 132Section 132(1)Section 143(3)Section 153ASection 250

…and therefore, the action under section 132[2] is bad in law [224 ITR 19 (SC)] and consequent assessment under section 153A is null and void-ab-initio on the parity of the ratio of the decision of the Hon’ble Apex Court in the case of Ajith Jain, reported in 260 ITR 80. iii. The authorities below have not discharged the burden of proving that there is a valid search under section 132 [1] [aj, [b] and [c] of the Act, and consequently the assumption of jurisdiction to make an assessment under section 153A of the Act is untenable in law. iv. The learned CIT(A) ought to have appreciated that the very search procee…

Shri. Kempareddy Govindraj, Bengaluru vs. Assistant Commissioner of Income Tax, Central Circle-2(3), Bengaluru

In the result the appeals of the assessee in ITA No’s 1022 to

ITA 1023/BANG/2024[2015-16]Status: DisposedITAT Bangalore31 Jan 2025AY 2015-16

Bench: Shri Laxmi Prasad Sahu

For Appellant: ITA Nos.1021 to 1024/Bang/2024
Section 131(1)Section 132Section 132(1)Section 143(3)Section 153ASection 250

…and therefore, the action under section 132[2] is bad in law [224 ITR 19 (SC)] and consequent assessment under section 153A is null and void-ab-initio on the parity of the ratio of the decision of the Hon’ble Apex Court in the case of Ajith Jain, reported in 260 ITR 80. iii. The authorities below have not discharged the burden of proving that there is a valid search under section 132 [1] [aj, [b] and [c] of the Act, and consequently the assumption of jurisdiction to make an assessment under section 153A of the Act is untenable in law. iv. The learned CIT(A) ought to have appreciated that the very search procee…

Shri. Kempareddy Govindraj, Bengaluru vs. Assistant Commissioner of Income Tax, Central Circle-2(3), Bengaluru

ITA 1022/BANG/2024[2014-15]Status: DisposedITAT Bangalore31 Jan 2025AY 2014-15

Bench: Shri Laxmi Prasad Sahu & Shri Soundarajan K

For Appellant: Shri. V. Chandrasekhar, ARFor Respondent: Shri. Sridhar E, CIT(DR)(ITAT), Bangalore
Section 131(1)Section 132Section 132(1)Section 143(3)Section 153ASection 250

…therefore, the action under section 132[2] is bad in law [224 ITR 19 (SC)] and consequent assessment under section 153A is null and void-ab-initio on the parity of the ratio of the decision of the Hon’ble Apex Court in the case of Ajith Jain, reported in 260 ITR 80. iii. The authorities below have not discharged the burden of proving that there is a valid search under section 132 [1] [a], [b] and [c] of the Act, and consequently the assumption of jurisdiction to make an assessment under section 153A of the Act is untenable in law. iv. The learned CIT(A) ought to have appreciated that the very search p…

Shri. Kempareddy Govindraj, Bengaluru vs. Assistant Commissioner of Income Tax, Central Circle-2(3), Bengaluru

In the result the appeals of the assessee in ITA No’s 1022 to

ITA 1021/BANG/2024[2013-14]Status: DisposedITAT Bangalore31 Jan 2025AY 2013-14

Bench: Shri Laxmi Prasad Sahu

For Appellant: ITA Nos.1021 to 1024/Bang/2024
Section 131(1)Section 132Section 132(1)Section 143(3)Section 153ASection 250

…and therefore, the action under section 132[2] is bad in law [224 ITR 19 (SC)] and consequent assessment under section 153A is null and void-ab-initio on the parity of the ratio of the decision of the Hon’ble Apex Court in the case of Ajith Jain, reported in 260 ITR 80. iii. The authorities below have not discharged the burden of proving that there is a valid search under section 132 [1] [aj, [b] and [c] of the Act, and consequently the assumption of jurisdiction to make an assessment under section 153A of the Act is untenable in law. iv. The learned CIT(A) ought to have appreciated that the very search procee…

The Deputy Commissioner of Income-Tax, Central Circle-1, Mangaluru vs. M/S. Blueline Foods (India) Pvt. Ltd., Mangaluru

ITA 182/BANG/2023[2017-18]Status: DisposedITAT Bangalore07 Aug 2024AY 2017-18

Bench: Shri George George K & Shri Laxmi Prasad Sahu

For Appellant: Revenue byFor Respondent: Date of hearing
Section 132Section 143(3)Section 153ASection 153CSection 255(4)

…IN THE INCOME TAX APPELLATE TRIBUNAL “B” BENCH : BANGALORE BEFORE SHRI GEORGE GEORGE K, VICE PRESIDENT AND SHRI LAXMI PRASAD SAHU, ACCOUNTANT MEMBER ITA Nos.182, 183/Bang/2023 Assessment Years : 2017-18, 2018-19 DCIT, Central Circle – 1, Mangaluru. APPELLANT Assessee by : Revenue by : Date of hearing : Date of Pronouncement : Vs. M/s. Blueline Foods (India) Pvt. Ltd., Suite # 406, Crystal Arc, Balmatta Road, Balmatta, Mangaluru – 575 001. PAN : AACCB 8979 J RESPONDENT Shri. B. S. N. Prasad, Advocate Shri. Saravanan B, CIT(DR), ITAT, Bengaluru. 07.08.2024 07.08.2024 O R D E R Per George George K, Vice President :…

Shri Shivajirao R.Chavan, Ahmedabad vs. The Income Tax Officer, Ward-13(2), Ahmedabad

The appeals of the assessee are allowed

ITA 435/AHD/2005[1996-1997]Status: DisposedITAT Ahmedabad05 Feb 2024AY 1996-1997

Bench: Smt.Annapurna Gupta & Smt. Madhumita Roy

For Appellant: Shri Sakar Sharma, A.RFor Respondent: Ms. Saumya Pandey Jain, Sr.DR
Section 147Section 148Section 148(2)Section 250(6)Section 271(1)(c)

…income. 24. Pertinent is the law laid down by the apex court that such preliminary report of CBI does not constitute information for forming any adverse belief against an assessee. The Hon’ble Apex Court in the case of Union of India Vs Ajit Jain and Another 260 ITR 80 (SC) affirmedthe order of the Hon’ble Delhi High Court in Ajit Jain vs Union of India reported in 242 ITR 302 (Del) holding so.The relevant findings of the Hon’ble High Court in this regard are as under: “14. It is in the light of the above principles of law that we take up the question whether the intimation given by the CBI to respondent No. 5…

The ITO, Ward-13(2), Ahmedabad vs. Shri Shivajirao R.Chavan, Ahmedabad

The appeals of the assessee are allowed

ITA 332/AHD/2005[1996-1997]Status: DisposedITAT Ahmedabad05 Feb 2024AY 1996-1997

Bench: Smt.Annapurna Gupta & Smt. Madhumita Roy

For Appellant: Shri Sakar Sharma, A.RFor Respondent: Ms. Saumya Pandey Jain, Sr.DR
Section 147Section 148Section 148(2)Section 250(6)Section 271(1)(c)

…income. 24. Pertinent is the law laid down by the apex court that such preliminary report of CBI does not constitute information for forming any adverse belief against an assessee. The Hon’ble Apex Court in the case of Union of India Vs Ajit Jain and Another 260 ITR 80 (SC) affirmedthe order of the Hon’ble Delhi High Court in Ajit Jain vs Union of India reported in 242 ITR 302 (Del) holding so.The relevant findings of the Hon’ble High Court in this regard are as under: “14. It is in the light of the above principles of law that we take up the question whether the intimation given by the CBI to respondent No. 5…

M/S Kbl Layout, Bangalore vs. ACIT, Central Circle-1(4), Bangalore

In the result, appeal of the assessee is dismissed

ITA 709/BANG/2013[2006-07]Status: DisposedITAT Bangalore07 Dec 2023AY 2006-07

Bench: Shri Chandra Poojari & Smt. Madhumita Royassessment Year: 2006-07

For Appellant: Shri C. Ramesh, A.RFor Respondent: Dr. Nischal, D.R
Section 132Section 153C

…1. “The authorities below failed to appreciate that a valid search is a sine qua non for making a valid assessment under section 153C of the Act on the parity of the ratio of the decision of the Hon'ble Apex Court in the case of UOI vs. Ajil Jain, reported in 260 ITR 80. 2. The assessment is bad in law as reasons for issue of notice under section 153C of the Act have not been given and the appellant has reasons to believe that the same has not been recorded and consequently the assessment is bad in law. The appellant submits that mandatory conditions to assume jurisdiction is to 3. record reasons and in the absen…

Sri. Kullachari Puttamma Nanjundi Vishwakarma, Bengaluru vs. Deputy Commissioner of Income-Tax, Central Circle-1(4), Bengaluru

In the result, the appeal filed by the assessee is partly allowed

ITA 951/BANG/2022[2011-12]Status: DisposedITAT Bangalore06 Feb 2023AY 2011-12

Bench: Shri George George K, Jm & Ms.Padmavathy S, Am

For Appellant: Sri V. Chandrashekar, AdvocateFor Respondent: Ms. Neera Malhotra, CIT-DR
Section 132Section 132(1)(a)Section 132(2)Section 153ASection 250

…ction 132(2) is bad in law [CIT vs. Vindhya Metal Corporation, 224 ITR 614 (SC) and consequent assessment under section 153A is null and void-ab-initio on the parity of the ratio of the decision of the Hon’ble Apex Court in the case of Ajith Jain, reported in 260 ITR 80. c. The learned authorities below have not discharged the burden of proving that there is a valid initiation, execution and completion of search under section 132(1)(a), (b) & (c) of the Act, in accordance with law to render the 3 ITA No.951/Bang/2022. Sri Kullachari Puttamma Nanjundi Viswakarma proceedings valid and to assume jurisdiction to make…

M/S. Trishul Buildtech & Infrastructures Pvt. Ltd., Bengaluru vs. The Deputy Commissioner of Income-Tax, Central Circle-2(2), Bengaluru

In the result, assessee’s appeals are partly allowed

ITA 109/BANG/2022[2018-19]Status: DisposedITAT Bangalore14 Nov 2022AY 2018-19

Bench: Shri Chandra Poojari & Shri George George K.

For Appellant: Shri A. Shankar, Senior AdvocateFor Respondent: Shri Manjunath Karkihalli, D.R
Section 250

…ly on the suspicion and therefore, the action under section 132(2) is bad in law and consequent assessment under section 153A is null and void-ab-inito on the parity of the ratio of the decision of the Hon'ble Apex Court in the case of Ajith Jain, reported in 260 ITR 80. iii) The learned assessing officer has not discharged the burden of proving that there is a valid search under section 132 (1) (a), (b) & (c) of the Act, and consequently the assumption of jurisdiction to make an assessment under section 153A of the Act is untenable in law. iv) The learned assessing officer failed to appreciate that a valid sear…

M/S. Trishul Buildtech & Infrastructures Pvt. Ltd., Bengaluru vs. The Deputy Commissioner of Income-Tax, Central Circle-2(2), Bengaluru

In the result, assessee’s appeals are partly allowed

ITA 108/BANG/2022[2017-18]Status: DisposedITAT Bangalore14 Nov 2022AY 2017-18

Bench: Shri Chandra Poojari & Shri George George K.

For Appellant: Shri A. Shankar, Senior AdvocateFor Respondent: Shri Manjunath Karkihalli, D.R
Section 250

…ly on the suspicion and therefore, the action under section 132(2) is bad in law and consequent assessment under section 153A is null and void-ab-inito on the parity of the ratio of the decision of the Hon'ble Apex Court in the case of Ajith Jain, reported in 260 ITR 80. iii) The learned assessing officer has not discharged the burden of proving that there is a valid search under section 132 (1) (a), (b) & (c) of the Act, and consequently the assumption of jurisdiction to make an assessment under section 153A of the Act is untenable in law. iv) The learned assessing officer failed to appreciate that a valid sear…

M/S. Trishul Buildtech & Infrastructures Pvt. Ltd., Bengaluru vs. The Deputy Commissioner of Income-Tax, Central Circle-2(2), Bengaluru

In the result, assessee’s appeals are partly allowed

ITA 107/BANG/2022[2016-17]Status: DisposedITAT Bangalore14 Nov 2022AY 2016-17

Bench: Shri Chandra Poojari & Shri George George K.

For Appellant: Shri A. Shankar, Senior AdvocateFor Respondent: Shri Manjunath Karkihalli, D.R
Section 250

…ly on the suspicion and therefore, the action under section 132(2) is bad in law and consequent assessment under section 153A is null and void-ab-inito on the parity of the ratio of the decision of the Hon'ble Apex Court in the case of Ajith Jain, reported in 260 ITR 80. iii) The learned assessing officer has not discharged the burden of proving that there is a valid search under section 132 (1) (a), (b) & (c) of the Act, and consequently the assumption of jurisdiction to make an assessment under section 153A of the Act is untenable in law. iv) The learned assessing officer failed to appreciate that a valid sear…