Business reorganisation requires recognition of successor's modified return; draft orders against dissolved transferor quashed and fresh review direct...
Pre-commencement R&D deduction denied where business had not commenced; deeming benefit requires tangible start of manufacture or commercial exploitat...
Priority of set-off: brought forward business losses must be adjusted before unabsorbed depreciation; procedural safeguards required for invoking rest...
For reassessment beyond three years, the Tribunal held that the recorded reasons must expressly satisfy the jurisdictional conditions in the proviso to section 148 and section 149(1)(b); vague references to an asset or books were insufficient, so the notices and consequential reassessments were void. It also held that material produced by a third person in response to a post-search summons under section 131 could not be treated as search material for Explanation 2 to section 148, and the Department had to follow section 148A if it wanted to rely on it. On the merits, blanket addition of two zeroes to all cash-book entries was rejected, though 16% profit estimation on supported unaccounted receipts was upheld; additions for land-development cash payments were sustained where corroborated, but an unsigned receipt issue was remitted for verification.
For reassessment beyond three years, the Tribunal held that the recorded reasons must expressly satisfy the jurisdictional conditions in the proviso to section 148 and section 149(1)(b); vague references to an asset or books were insufficient, so the notices and consequential reassessments were void. It also held that material produced by a third person in response to a post-search summons under section 131 could not be treated as search material for Explanation 2 to section 148, and the Department had to follow section 148A if it wanted to rely on it. On the merits, blanket addition of two zeroes to all cash-book entries was rejected, though 16% profit estimation on supported unaccounted receipts was upheld; additions for land-development cash payments were sustained where corroborated, but an unsigned receipt issue was remitted for verification.
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