Section 153A of the Income Tax Act

The decision most relied on for Section 153A is National Thermal Power Co. Ltd. v. CIT (229 ITR 383), cited in 5,834 of the 18,957 judgments on BharatTax that turn on this section.

Leading authorities on Section 153A

National Thermal Power Co. Ltd. v. CIT
229 ITR 383 · 1998 · Supreme Court
5,834
citing judgments

Appellate authorities can consider new claims and additional grounds if the relevant facts are already on record. The purpose of assessment is to correctly determine tax liability, allowing both parties to raise issues.

CIT v. Kabul Chawla
380 ITR 573 · 2016 · High Court
3,235
citing judgments

In a search assessment under Section 153A, additions can only be made for completed or non-abated assessment years if incriminating material relevant to those years is found during the search, although notice under Section 153A(1) is mandatorily issued for six assessment years preceding the search.

CIT v. Vegetable Products Ltd.
88 ITR 192 · 1973 · Supreme Court
2,664
citing judgments

When two equally plausible interpretations of a taxing provision are possible, or when conflicting views exist from non-jurisdictional High Courts, the interpretation that favors the assessee must be adopted.

CIT v. Manjunatha Cotton & Ginning Factory
359 ITR 565 · 2013 · High Court
2,590
citing judgments

A penalty notice issued under section 274 read with section 271(1)(c) is invalid if it fails to specify whether the penalty proceedings are initiated for concealment of income or for furnishing inaccurate particulars of income. This non-specification vitiates the penalty proceedings.

Pr. CIT v. Abhisar Buildwell (P.) Ltd.
149 Taxmann.com 399 · 2023 · Supreme Court
2,379
citing judgments

An assessment under section 153A is without jurisdiction if there is an absence of incriminating material for an unabated assessment year.

Goetze (India) Ltd. v. CIT
284 ITR 323 · 2006 · Supreme Court
1,842
citing judgments

An assessee cannot raise a new claim or a claim not made in the original or revised return of income for the first time directly before the Assessing Officer during assessment proceedings.

CIT v. Continental Warehousing Corporation (Nhava Sheva) Ltd.
374 ITR 645 · 2015 · High Court
1,823
citing judgments

In Section 153A proceedings, the scope of assessment extends to abated proceedings, enabling an assessee to raise fresh legal claims that could have been made in regular assessment proceedings.

Radhasoami Satsang v. CIT
193 ITR 321 · 1992 · Supreme Court
1,695
citing judgments

The principle of consistency applies in tax matters, meaning a fundamental aspect found to be true in one assessment year should not be changed in a subsequent year if the order was not challenged.

CIT v. Sinhgad Technical Education Society
397 ITR 344 · 2017 · Supreme Court
1,589
citing judgments

For assessments under Section 153C, a notice is legally unsustainable if there is no incriminating material correlated to the specific assessment years for which reassessment is sought.

Jute Corporation of India Ltd. v. CIT
187 ITR 688 · 1991 · Supreme Court
1,372
citing judgments

The Commissioner of Income Tax (Appeals) possesses co-terminus powers with the Assessing Officer and can direct the Assessing Officer to perform actions he failed to do, but cannot introduce a new source of income in the assessment. The appellate assessment must be confined to the items of income that were the subject matter of the original assessment.

Judgments on Section 153A

S S Group, Pune vs. Assistant Commissioner of Income Tax, Center Circle - 1(3), Pune

In the result, appeal of the assessee is partly allowed

ITA 599/PUN/2022[2015-16]Status: DisposedITAT Pune05 Oct 2023AY 2015-16

Bench: Shri Partha Sarathi Chaudhury & Dr. Dipak P. Ripotes.S. Group, 9, Siddhivinayak, Vs Acit, Central Circle-1(3), M.G. Road, Near Golibar Pune Maidan, Pune-411 001 Pan: Aaias 9707 K Appellant Respondent Assessee By : Shri Suhas Bora, Ca Revenue By : Shri Ajay Kumar Kesari, Dr Date Of Hearing : 26/09/2023 Date Of Pronouncement : 05/10/2023 O R D E R Per Partha Sarathi Chaudhury, Jm: This Appeal Preferred By The Assessee Emanates From The Order Of Commissioner Of Income Tax (Appeals)-11, Pune (For Short, „Cit(A)‟), Dated 30.05.2022 For A.Y.2015-16 As Per The Following Grounds Of Appeal:- “1. The Ld Cit(A) Erred In Confirming The Order Of The Ao Making The Additions On Completing The Assessment U/S 143(3) R.W.S.153A When No Incriminating Documents Were Found During The Course Of Search Regarding The Issue Involved In The Assessment Only On The Ground That The Present Assessment Falls In The Category Of Abated Assessment & Failed To Consider The Fact That No Any Such Document Have Been Relied On While Completing The Assessment Or Making The Additions & As Such The Assessment Completed U/S 143(3) R.W.S.153A Is Bad In Law. 2. The Ld Cit(A) Has Erred In Confirming The Action Of The Ao In Applying The Percentage Completion Method For Revenue Recognition For The Year Under Consideration On The Ground That The Appellant Firm Through Its Managing Partner Had S.S. Group

For Appellant: Shri Suhas Bora, CAFor Respondent: Shri Ajay Kumar Kesari, DR
Section 132(4)Section 143(3)