Section 153B of the Income Tax Act

The decision most relied on for Section 153B is ACIT v. Sirajuddin& Co. (150 Taxmann.com 146), cited in 288 of the 671 judgments on BharatTax that turn on this section.

Leading authorities on Section 153B

ACIT v. Sirajuddin& Co.
150 Taxmann.com 146 · 2023 · High Court
288
citing judgments

Assessment orders are bad in law if they are passed without valid approval from the Additional Commissioner under Section 153D, or if such approval is granted mechanically without application of mind.

Shreelekha Damani v. DCIT
173 TTJ 332 · 2015 · ITAT
236
citing judgments

Approval granted by a superior authority under Section 153D in a mechanical or perfunctory manner, without proper application of mind, lacks legal sanctity and renders the subsequent assessment order null and void.

PCIT v. Sreelekha Damani
307 CTR 218 · 2019 · High Court
208
citing judgments

The validity of approval is a fundamental issue that can be raised at any time, and the Tribunal has jurisdiction to hear such issues even if they did not originate from the orders of the CIT(A).

Rajesh Kumar v. DCIT
287 ITR 91 · 2006 · Supreme Court
121
citing judgments

When a statutory authority takes action that can lead to civil or adverse consequences for an individual, the principles of natural justice, particularly the right to be heard (audi alteram partem), must be implicitly followed, even if the relevant statute does not expressly provide for it.

Builders’ Association Of India v. Union Of India
2 SCC 645 · 1989 · Reported
113
citing judgments
Sahara India (Firm,) Lucknow v. Commissioner of Income Tax
14 SCC 151 · 2008 · Reported
106
citing judgments

This case establishes principles for determining the validity of a special audit direction issued under Section 142(2A) and its impact on the extended period of limitation under Section 153(3) Explanation 1(iii), often considered in the context of natural justice.

Ramaiah Reddy v. ACIT
339 ITR 210 · 2011 · High Court
104
citing judgments

A search is considered complete once the search party leaves the premises with the seized material. A restraint order under section 132(3) can only be passed if there's a practical difficulty in seizing the material.

Pr.CIT v. Anuj Bansal
165 Taxmann.com 3 · 2024 · Supreme Court
83
citing judgments

Approval for assessments under Section 153D must demonstrate application of mind to the facts of the case and be obtained separately for each assessment year.

VLS Finance Limited & Another v. Commissioner of Income Tax & Another
12 SCC 32 · 2016 · Reported
77
citing judgments

Transaction charges paid to a stock exchange are for providing a facility and not fees for technical services, thus no tax deduction is required under Section 194J.

L/H Mrs. Ranjana Katyal v. DCIT
308 ITR 168 · 2009 · High Court
64
citing judgments

A reference for assessment years preceding the commencement of a search protocol is invalid, and no extended limitation period can be applied.

Judgments on Section 153B

The Commissioner of Income Tax, New Delhi vs. Ram Kishan Dass

CIVIL APPEAL No. 3211/2019Supreme Court26 Mar 2019

Bench: Assessment – Special Audit – Extension Of Time For Submission Of The Audit Report Of The Auditor Appointed Under The Provisions Of S. 142(2A) – Jurisdiction Of The Assessing Officer – Order By The Tribunal That Prior To The Insertion Of The Expression ‘Suo Motu’ W.E.F. 01.04.2008 In S. 142(2C), The Assessing Officer Had No Jurisdiction To Extend Time For The Submission Of The Report Of An Auditor Appointed U/S.142(2A), Of His Own Accord & As A Result, The Assessment Made U/S. 153A, In Respect Of The Assessment Years Was Barred By Limitation – Upheld By The High Court – On Appeal, Held: Provisions Of S. 142(2C), As They Stood Prior To The Amendment Did Not Preclude The Exercise Of Jurisdiction & Authority By The Assessing Officer To Extend Time For The Submission Of The Audit Report Directed Under Sub-Section (2A), Without An Application By The Assessee – Amendment Was Intended To Remove Ambiguity & Is Clarificatory In Nature . Allowing The Appeals, The Court Held: 1.1 Sub-Section (2A) Of Section 142 Of The Income Tax Act, 1961 Empowers The Assessing Officer To Direct The Assessee To Get The Accounts Audited By An Accountant, On The Formation Of An Opinion That The Conditions Specified In The Provision For Recourse To The Power Are Fulfilled. The Power To Order An Audit Is Vested With The Assessing Officer. As A Necessary Incident Of This Power, Sub-Section (2C) Imposes An Obligation On The Assessee To Furnish The Report To The Assessing Officer Within The Period Which Is Specified By The Assessing Officer. The Substantive Part Of Sub-Section (2C) Places An Obligation On The Assessee To Comply With The Time Schedule Which [2019] 5 S.C.R. 25 25

Section 142Section 144Section 153ASection 271