“Section 151(4)”
The decision most relied on for Section 151(4) is Union of India v. Ashish Agarwal (444 ITR 1), cited in 524 judgments on BharatTax.
Leading authorities on Section 151(4)
Notices issued under the unamended Section 148 of the Income-tax Act between April 1, 2021, and May 4, 2022, must be treated as notices issued under the new Section 148A(b) of the amended law. This requires the Assessing Officer to follow the procedure prescribed under the amended reassessment provisions, including issuing an order under Section 148A(d) before a fresh notice under Section 148.
An income tax assessment or addition cannot be made based solely on suspicion, surmises, or conjectures. The income tax department requires evidence or material to justify an addition, as suspicion, however strong, does not constitute proof.
An assessment can be reopened if there is tangible material indicating escapement of income, demonstrating a live link between the material and the reasons recorded for reopening. The Assessing Officer must apply their mind to the material facts, and the sanction under section 151 should not be based on borrowed satisfaction.
Reasons recorded under Section 148 for reopening an assessment are jurisdictional facts that form the sole basis for assuming power and cannot be changed, supplemented, or corrected later. Such reasons must be based on fresh tangible material indicating income escapement.
Assessment orders under Section 153A or 153C must be declared void ab initio if the assessment is made without adhering to the mandatory provisions of Section 153C.
A statutory authority vested with discretion must exercise that power independently, based on its own judgment, and not under the dictation or instructions of a higher authority. Exercising discretion under superior direction constitutes a failure to exercise it at all.
An appellate authority can admit additional legal grounds for the first time, even if not raised earlier, provided these grounds are purely legal, go to the root of the matter, and the relevant facts for their adjudication are already on record.
The law applicable to an assessment year is the law in force during that assessment year, unless the statute provides otherwise expressly or by necessary implication. Amendments to tax laws are generally prospective.
