Section 271AAA of the Income Tax Act
The decision most relied on for Section 271AAA is CIT v. SPL’s Siddhartha Ltd. (345 ITR 223), cited in 164 of the 48 judgments on BharatTax that turn on this section.
Leading authorities on Section 271AAA
Reassessment proceedings under Section 147 are invalid if the sanction required under Section 151 is obtained mechanically, without independent application of mind by the sanctioning authority, or is based on borrowed satisfaction.
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.
Cash deposits made into a bank account can be telescoped into prior cash withdrawals from the same account, meaning no adverse inference or addition can be drawn if the deposits are adequately explained by those previous withdrawals.
When a statement is made voluntarily and not under coercion, and the assessee fails to take steps to rectify it before the relevant authorities, the retraction of such a statement later is not valid.
A retraction of a statement made during a search or survey is not valid if the assessee cannot prove it was made under threat or coercion, especially when independent witnesses were present.
An admission made by a party is the best evidence of the point in issue and is decisive unless successfully challenged. A retraction of a statement must be supported by material evidence.
A voluntary declaration made during a survey or search can be relied upon for assessment, even if later retracted, unless proven to be made under threat or coercion.
Judgments on Section 271AAA
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