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

Wilfred D'Souza, Mangaluru vs. Assistant Commissioner of Income Tax, Central Circle-2, Mangaluru

In the result, ITA Nos.323 & 324/Bang/2022 are allowed and the appeals filed by the assessee in ITA Nos

ITA 328/BANG/2022[2013-14]Status: DisposedITAT Bangalore07 Oct 2022AY 2013-14

Bench: Shri Chandra Poojari & Smt. Beena Pillai

For Appellant: Shri Narendra Sharma, A.RFor Respondent: Smt. S. Praveena, D.R
Section 132Section 143Section 153ASection 246A

…Page 4 of 41 [2] of the Act is bad in law and consequent assessment order passed under section 143[3] r.w.s. 153A of the Act 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. 4.1 The Ld. A.R. submitted that the notice issued by the Assessing officer under section 153 A of the Act is not valid in law and without assumption of proper and valid jurisdiction. The said notice was issued pursuant to search action conducted which is ultra vires the provisions of section 132 [1] [a], [b] and [c] of the Act and consequently th…

Wilfred D'Souza, Mangaluru vs. Assistant Commissioner of Income Tax, Central Circle-2, Mangaluru

In the result, ITA Nos.323 & 324/Bang/2022 are allowed and the appeals filed by the assessee in ITA Nos

ITA 327/BANG/2022[2012-13]Status: DisposedITAT Bangalore07 Oct 2022AY 2012-13

Bench: Shri Chandra Poojari & Smt. Beena Pillai

For Appellant: Shri Narendra Sharma, A.RFor Respondent: Smt. S. Praveena, D.R
Section 132Section 143Section 153ASection 246A

…Page 4 of 41 [2] of the Act is bad in law and consequent assessment order passed under section 143[3] r.w.s. 153A of the Act 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. 4.1 The Ld. A.R. submitted that the notice issued by the Assessing officer under section 153 A of the Act is not valid in law and without assumption of proper and valid jurisdiction. The said notice was issued pursuant to search action conducted which is ultra vires the provisions of section 132 [1] [a], [b] and [c] of the Act and consequently th…

Wilfred D'Souza, Mangaluru vs. Assistant Commissioner of Income Tax, Central Circle-2, Mangaluru

In the result, ITA Nos.323 & 324/Bang/2022 are allowed and the appeals filed by the assessee in ITA Nos

ITA 326/BANG/2022[2011-12]Status: DisposedITAT Bangalore07 Oct 2022AY 2011-12

Bench: Shri Chandra Poojari & Smt. Beena Pillai

For Appellant: Shri Narendra Sharma, A.RFor Respondent: Smt. S. Praveena, D.R
Section 132Section 143Section 153ASection 246A

…Page 4 of 41 [2] of the Act is bad in law and consequent assessment order passed under section 143[3] r.w.s. 153A of the Act 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. 4.1 The Ld. A.R. submitted that the notice issued by the Assessing officer under section 153 A of the Act is not valid in law and without assumption of proper and valid jurisdiction. The said notice was issued pursuant to search action conducted which is ultra vires the provisions of section 132 [1] [a], [b] and [c] of the Act and consequently th…

Wilfred D'Souza, Mangaluru vs. Assistant Commissioner of Income Tax, Central Circle-2, Mangaluru

In the result, ITA Nos.323 & 324/Bang/2022 are allowed and the appeals filed by the assessee in ITA Nos

ITA 325/BANG/2022[2010-11]Status: DisposedITAT Bangalore07 Oct 2022AY 2010-11

Bench: Shri Chandra Poojari & Smt. Beena Pillai

For Appellant: Shri Narendra Sharma, A.RFor Respondent: Smt. S. Praveena, D.R
Section 132Section 143Section 153ASection 246A

…Page 4 of 41 [2] of the Act is bad in law and consequent assessment order passed under section 143[3] r.w.s. 153A of the Act 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. 4.1 The Ld. A.R. submitted that the notice issued by the Assessing officer under section 153 A of the Act is not valid in law and without assumption of proper and valid jurisdiction. The said notice was issued pursuant to search action conducted which is ultra vires the provisions of section 132 [1] [a], [b] and [c] of the Act and consequently th…

Wilfred D'Souza, Mangaluru vs. Assistant Commissioner of Income Tax, Central Circle-2, Mangaluru

In the result, ITA Nos.323 & 324/Bang/2022 are allowed and the appeals filed by the assessee in ITA Nos

ITA 324/BANG/2022[2009-10]Status: DisposedITAT Bangalore07 Oct 2022AY 2009-10

Bench: Shri Chandra Poojari & Smt. Beena Pillai

For Appellant: Shri Narendra Sharma, A.RFor Respondent: Smt. S. Praveena, D.R
Section 132Section 143Section 153ASection 246A

…Page 4 of 41 [2] of the Act is bad in law and consequent assessment order passed under section 143[3] r.w.s. 153A of the Act 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. 4.1 The Ld. A.R. submitted that the notice issued by the Assessing officer under section 153 A of the Act is not valid in law and without assumption of proper and valid jurisdiction. The said notice was issued pursuant to search action conducted which is ultra vires the provisions of section 132 [1] [a], [b] and [c] of the Act and consequently th…

Wilfred D'Souza, Mangaluru vs. Assistant Commissioner of Income Tax, Central Circle-2, Mangaluru

In the result, ITA Nos.323 & 324/Bang/2022 are allowed and the appeals filed by the assessee in ITA Nos

ITA 323/BANG/2022[2008-09]Status: DisposedITAT Bangalore07 Oct 2022AY 2008-09

Bench: Shri Chandra Poojari & Smt. Beena Pillai

For Appellant: Shri Narendra Sharma, A.RFor Respondent: Smt. S. Praveena, D.R
Section 132Section 143Section 153ASection 246A

…Page 4 of 41 [2] of the Act is bad in law and consequent assessment order passed under section 143[3] r.w.s. 153A of the Act 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. 4.1 The Ld. A.R. submitted that the notice issued by the Assessing officer under section 153 A of the Act is not valid in law and without assumption of proper and valid jurisdiction. The said notice was issued pursuant to search action conducted which is ultra vires the provisions of section 132 [1] [a], [b] and [c] of the Act and consequently th…

Sri C Anil Rahashekar, Bangalore vs. Deputy Commissioner of Income Tax Central Circle-2(3), Bangalore

In the result, the appeals of the assessee are allowed for statistical purposes

ITA 1733/BANG/2018[2008-09]Status: DisposedITAT Bangalore02 Sept 2022AY 2008-09

Bench: Shri George George K & Shri Laxmi Prasad Sahu

For Appellant: Shri G.S Prashanth, C.AFor Respondent: Shri. Sumer Singh Meena, CIT (DR)
Section 132Section 132(1)Section 132(1)(a)Section 132(2)Section 153ASection 153C

…of 25 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 Jam, reported in 260 ITR 80. c) The learned authorities below have not discharged 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 its completion in accordance with law to render the proceedings valid under the facts and circumstances of the case. d) The learned CIT(A) failed to appreciate that…

Sri Rathan Babulal Lath, Bangalore vs. Deputy Commissioner of Income Tax, Central Circle- 1(4), Bangalore

In the result, the appeal filed by the assessee is partly allowed for statistical purposes

ITA 157/BANG/2020[2009-10]Status: DisposedITAT Bangalore05 Aug 2022AY 2009-10

Bench: Shri Chandra Poojari & Smt. Beena Pillaiassessment Year: 2009-10

For Appellant: Shri V. Srinivasan, A.RFor Respondent: Shri Vilas V. Shinde, D.R
Section 132Section 153A

…n the case of the appellant on 08/09/2016 are bad in law and are ultra-vires the provisions of Section 132[1][a], [b] and [c] of the Act and therefore, having regard to the parity of the ratio of the Hon'ble Supreme Court in the case of AJITH JAIN reported in 260 ITR 80 and the Hon'ble Karnataka High Court in the case of C. RAMAIAH REDDY reported in 339 ITR 210, the order passed is patently illegal and requires to be cancelled as void-ab-initio. 3.1 After hearing both the parties, we are of the view that in view of the retrospective insertion of Explanation (1) to Section 132 of the Act, income tax authorities p…

Deputy Commissioner of Income Tax, Central Circle-1(2), Bengaluru vs. M/S. Gokula Education Foundation (Medical), Bengaluru

In the result, revenue appeals in ITA Nos

ITA 509/BANG/2021[2017-18]Status: DisposedITAT Bangalore18 Jul 2022AY 2017-18

Bench: Shri Chandra Poojari & Smt. Beena Pillai

For Appellant: Shri V.S. Chakrapani, D.RFor Respondent: Shri V. Chandrashekar, A.R
Section 132Section 143Section 153A

…nd 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 learned authorities below have not discharged the burden of proving that there is a valid initiation of search under section 132[1][a], [b] 8 [c] of the Act, its execution and its completion in accordance with law to render the proceedings valid and to assume jurisdiction to make an assessment under section 153A of the Act. 4. Without pr…

Deputy Commissioner of Income Tax, Central Circle-1(2), Bangalore vs. M/S. Gokula Education Foundation (Medical), Bengaluru

In the result, revenue appeals in ITA Nos

ITA 508/BANG/2021[2014-15]Status: DisposedITAT Bangalore18 Jul 2022AY 2014-15

Bench: Shri Chandra Poojari & Smt. Beena Pillai

For Appellant: Shri V.S. Chakrapani, D.RFor Respondent: Shri V. Chandrashekar, A.R
Section 132Section 143Section 153A

…nd 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 learned authorities below have not discharged the burden of proving that there is a valid initiation of search under section 132[1][a], [b] 8 [c] of the Act, its execution and its completion in accordance with law to render the proceedings valid and to assume jurisdiction to make an assessment under section 153A of the Act. 4. Without pr…

Deputy Commissioner of Income Tax, Central Circle-1(2), Bengaluru vs. M/S. Gokula Education Foundation (Medical), Bengaluru

In the result, revenue appeals in ITA Nos

ITA 501/BANG/2021[2013-14]Status: DisposedITAT Bangalore18 Jul 2022AY 2013-14

Bench: Shri Chandra Poojari & Smt. Beena Pillai

For Appellant: Shri V.S. Chakrapani, D.RFor Respondent: Shri V. Chandrashekar, A.R
Section 132Section 143Section 153A

…nd 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 learned authorities below have not discharged the burden of proving that there is a valid initiation of search under section 132[1][a], [b] 8 [c] of the Act, its execution and its completion in accordance with law to render the proceedings valid and to assume jurisdiction to make an assessment under section 153A of the Act. 4. Without pr…

Deputy Commissioner of Income Tax, Central Circle-1(2), Bengaluru vs. M/S. Gokula Education Foundation (Medical), Bengaluru

In the result, revenue appeals in ITA Nos

ITA 500/BANG/2021[2012-13]Status: DisposedITAT Bangalore18 Jul 2022AY 2012-13

Bench: Shri Chandra Poojari & Smt. Beena Pillai

For Appellant: Shri V.S. Chakrapani, D.RFor Respondent: Shri V. Chandrashekar, A.R
Section 132Section 143Section 153A

…nd 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 learned authorities below have not discharged the burden of proving that there is a valid initiation of search under section 132[1][a], [b] 8 [c] of the Act, its execution and its completion in accordance with law to render the proceedings valid and to assume jurisdiction to make an assessment under section 153A of the Act. 4. Without pr…

Deputy Commissioner of Income Tax, Central Circle-1(2), Bengaluru vs. M/S. Gokula Education Foundation (Medical), Bengaluru

In the result, revenue appeals in ITA Nos

ITA 499/BANG/2021[2011-12]Status: DisposedITAT Bangalore18 Jul 2022AY 2011-12

Bench: Shri Chandra Poojari & Smt. Beena Pillai

For Appellant: Shri V.S. Chakrapani, D.RFor Respondent: Shri V. Chandrashekar, A.R
Section 132Section 143Section 153A

…nd 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 learned authorities below have not discharged the burden of proving that there is a valid initiation of search under section 132[1][a], [b] 8 [c] of the Act, its execution and its completion in accordance with law to render the proceedings valid and to assume jurisdiction to make an assessment under section 153A of the Act. 4. Without pr…

Principal Director of Income Tax (Investigation) vs. Laljibhai Kanjibhai Mandalia

The appeal is allowed and the order passed by the High

C.A. No.-004081-004081 - 2022Supreme Court13 Jul 2022

Bench: HON'BLE MR. JUSTICE HEMANT GUPTA

Section 132Section 132(1)Section 143(3)

…e case of reassessment of Income under the Act or its predecessor statute, the Essential Commodities Act, 1955; the Foreign Exchange Regulation Act, 1973 as well as in respect of action of the Revenue in the matter of 9 (2000) 242 ITR 302 (Del.) 10 (2003) 260 ITR 80 (SC) 11 (2005) 278 ITR 36 (Bom.) 12 (2021) 433 ITR 203 (Telangana) 13 (1991) SCC OnLine Del. 584 : (1992) 194 ITR 32 (Del.) 14 (1995) 215 ITR 234 (P&H) 11 search and seizure. 13. In S. Narayanappa v. CIT,15 a case of re-assessment for the reason that income had escaped assessment, this Court held the Revenue must have reason to believe…

M/S. Mahendra Auto Services (Deemed AOP), Dhule vs. Assistant Commissioner of Income-Tax

In the result, appeal of the assessee is partly allowed

ITA 810/PUN/2016[BP: 1988-89 to 10/07/1997]Status: DisposedITAT Pune07 Jul 2022

Bench: Shri S.S.Godara & Dr. Dipak P. Ripoteआयकरअपीलसं. / Ita No.810/Pun/2016 िनधा"रणवष" / Block Period : 1988-89 To 10.07.1997 Mahendra Auto Services (Aop), The Assistant Commissioner C/O.Gopinath Manohar Wadi, 29, Vs Of Income Tax, Circle-3(1), Vaibhav Road, Dhule-424001. Dhule. Pan: Aaaam 6249 C Appellant/ Assessee Respondent /Revenue Assessee By Shri Sanket Milind Joshi – Ar Revenue By Shri S P Walimbe – Dr Date Of Hearing 04/05/2022 Date Of Pronouncement 07/07/2022

Section 158Section 158B

…ssessed in accordance with Chapter XIVB of the Act. A search is a pre-request for the initiation of block assessment proceedings as held by the Delhi High Court in the case of Ajit Jain v. Union of India and Ors., 242 ITR 302, affirmed by the Supreme Court in 260 ITR 80. In the case of CIT v. Ms. Pushpa Rani (2004) 136 Taxman 627, the Hon'ble Delhi High Court has held that if there is no search warrant 9. It, therefore, appears to us be a correct position that the block assessment in the present case is void ab initio since there was no warrant of ITA No.810/PUN/2016 for Block Period: 01.04.1987 to 10.07.1997 M/s…

M/S.Balaji Bullion & Commodities (India) Private Limited, Mumbai vs. DCIT Central Circle-40, Mumbai

In the result, both the appeals are allowed

ITA 1291/MUM/2018[2009-10]Status: DisposedITAT Mumbai29 Apr 2022AY 2009-10

Bench: Shri Prashant Maharishi, Am & Shri Amarjit Singh, Jm Balaji Bullion & Commodities The Dy. Commissioner Of (India) Private Limited Income–Tax, 118/120, 3Rd Floor, Ashoka Central Circle–40, Vs. House Zavri Baazar, Mumbai Mumbai-400 002 (Appellant) (Respondent) Pan No. Aadcbo236F Balaji Universal Tradelinks P. The Dy. Commissioner Of Ltd. Income–Tax, 118/120, 3Rd Floor, Ashoka Central Circle–40, Vs. House Zavri Baazar, Mumbai Mumbai-400 002

For Appellant: Shri N.M. Porwal, AdvFor Respondent: Shri Dr. Mahesh Akhade, CIT DR
Section 10ASection 153ASection 153BSection 37Section 68

…1292/Mum/2018 M/s Balaji Universal Tradelinks P. Ltd. & Balaji Bullion & commodities (I) P. Ltd.; A.Y. 09–10 Chapter XIV-B would have no application. This judgment of the Delhi High Court has been upheld by the apex court in Union of India v. Ajit Jain [2003] 260 ITR 80 (SC). The Delhi High Court in CIT v. M.S. Rohini S. Walia [2007] 289 ITR328 (Delhi), held that it would be a futile exercise to entertain appeals where admittedly no search warrant was issued in the case of the assessees and the Tribunal held that unless a search warrant was issued, the Assessing Officer could not invoke the provisions of section…

Mr. B.Nagendra, Bellary vs. Deputy Commissioner of Income Tax, Bangalore

In the result, both the appeals by the assessee are partly allowed

ITA 1946/BANG/2016[2011-12]Status: DisposedITAT Bangalore17 Mar 2022AY 2011-12

Bench: Shri Chandra Poojari & Smt. Beena Pillai

For Appellant: Shri G.S. Prashant, CAFor Respondent: Dr. Manjunath Karkihalli, CIT(DR)(ITAT), Bengaluru
Section 132Section 132(1)(a)Section 143(3)Section 153A

…is bad in law and consequent assessment under section 153A of the Act is null and void-ab-initio on the parity of the ratio of the decision ITA Nos. 1945 & 1946/Bang/2016 Page 3 of 32 of the Hon'ble Apex Court in the case of UOI vs. Ajith Jain, reported in 260 ITR 80. iii. The learned authorities below have not discharged 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 its completion in accordance with law to render the proceedings valid and to assume jurisdiction to make an assessment under section 153A of the Act. Reliance is p…

Mr. B.Nagendra, Belgium vs. Deputy Commissioner of Income Tax, Bangalore

In the result, both the appeals by the assessee are partly allowed

ITA 1945/BANG/2016[2010-11]Status: DisposedITAT Bangalore17 Mar 2022AY 2010-11

Bench: Shri Chandra Poojari & Smt. Beena Pillai

For Appellant: Shri G.S. Prashant, CAFor Respondent: Dr. Manjunath Karkihalli, CIT(DR)(ITAT), Bengaluru
Section 132Section 132(1)(a)Section 143(3)Section 153A

…is bad in law and consequent assessment under section 153A of the Act is null and void-ab-initio on the parity of the ratio of the decision ITA Nos. 1945 & 1946/Bang/2016 Page 3 of 32 of the Hon'ble Apex Court in the case of UOI vs. Ajith Jain, reported in 260 ITR 80. iii. The learned authorities below have not discharged 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 its completion in accordance with law to render the proceedings valid and to assume jurisdiction to make an assessment under section 153A of the Act. Reliance is p…

DCIT vs. M/S Coastal Costruction

In the result, the revenue’s appeal is dismissed, while the CO by the assessee is partly allowed for statistical purposes

ITA 1005/BANG/2013[2006-07]Status: DisposedITAT Bangalore16 Mar 2021AY 2006-07

Bench: Shri Chandra Poojari & Shri George George Kdy. Commissioner Of Income Tax, Central Circle 2(3), Bangalore. …. Appellant.

For Appellant: Shri Narendra Sharma, AdvocateFor Respondent: Shri Muzaffar Hussain, CIT(D.R.)
Section 132Section 143Section 153ASection 153CSection 2Section 2(22)(e)Section 234

…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 and consequently the order of Page 3 of 12 assessment passed under section 153C of the Act is bad in law. iii. The learned authorities below has not discharged 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 its completion in accordance with law to render the procee…

M/S B B Jewellers and Finance Pvt Ltd, Bangalore vs. Deputy Commissioner of Income Tax Central Circle-1(4), Bangalore

In the result, all the five appeals of the assessee are allowed for statistical purposes

ITA 1622/BANG/2018[2012-13]Status: DisposedITAT Bangalore11 Sept 2020AY 2012-13

Bench: Shri A. K. Garodia & Smt. Beena Pillai

For Appellant: Shri. G. S. Prashanth, CAFor Respondent: Shri. Muzaffar Hussain, CIT(DR)(ITAT), Bengaluru
Section 132(1)(a)Section 132(2)Section 153ASection 68

…tion 132(2) is bad in law and consequent assessment under section 153A is null and ITA Nos. 1619 to 1623/Bang/2018 Page 4 of 26 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. c) The learned authorities below have not discharged 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 its completion in accordance with law to render the proceedings valid and to assume jurisdiction to make an assessment under section 153A of the Act. d) The authorit…