Condonation of Delay: directoral disputes and pending company proceedings can constitute reasonable cause, allowing a belated return to be treated as ...
Revisionary jurisdiction under section 263 upheld; faceless assessments subject to revision when AO fails requisite enquiries, remitted for fresh asse...
Limited scope of processing under section 143(1): enhancement without show cause is unsustainable; remand for residency, taxation and TDS verification...
ITAT held that rectification under section 154 cannot be used to recharacterise survey disclosure accepted in scrutiny assessment as business income into unexplained money under section 69A and taxed under section 115BBE. The amount had been stated during survey as on-money receipts from business activity, credited in the regular books, and accepted in the original section 143(3) assessment as business income. Because changing its character would require fresh factual appraisal and a new determination on section 69A, the issue was debatable and outside the limited scope of rectification. The rectification order was therefore unsustainable.
ITAT held that rectification under section 154 cannot be used to recharacterise survey disclosure accepted in scrutiny assessment as business income into unexplained money under section 69A and taxed under section 115BBE. The amount had been stated during survey as on-money receipts from business activity, credited in the regular books, and accepted in the original section 143(3) assessment as business income. Because changing its character would require fresh factual appraisal and a new determination on section 69A, the issue was debatable and outside the limited scope of rectification. The rectification order was therefore unsustainable.
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