Attachment and proclamation of sale of immovable property: limitation treated from financial year end; proclamation held within period, petition dismi...
Second Schedule attachment and validity of a post-notice mortgage: TRO cannot declare mortgage void ab initio; sale and appropriation allowed thereaft...
Limitation for final assessment under sections 144C and 153 treated jointly, resulting in quashing of timebarred assessment order and liberty to reviv...
Deductibility of settlement payments for securities law penalties and treatment of unexplained cash credits in share trading -- Tribunal upholds posit...
Threshold for allottee-initiated insolvency petitions in leasehold real estate upheld; petition admitted after possession letters deemed legally ineff...
Contravention of foreign exchange rules in crossborder diamond payments; appellate tribunal reduces one appellant's penalty for delay and proportional...
Reassessment initiated beyond three years was tested against the statutory precondition in section 149(1)(b) that the AO must have material to form a reasonable belief that income escaping assessment was likely to be ₹50 lakh or more. The tribunal held that "likely to amount" cannot be inferred merely from gross bank transactions without a preliminary analysis of the nature of entries and the taxable component. On the facts, even treating the credits as receipts yielding commission income, the taxable income could not reasonably exceed ₹50 lakh, and the ultimately assessed escaped income was far below the threshold. The reopening was therefore barred by limitation and without jurisdiction; the appeal was allowed. - ITAT
Reassessment initiated beyond three years was tested against the statutory precondition in section 149(1)(b) that the AO must have material to form a reasonable belief that income escaping assessment was likely to be ₹50 lakh or more. The tribunal held that "likely to amount" cannot be inferred merely from gross bank transactions without a preliminary analysis of the nature of entries and the taxable component. On the facts, even treating the credits as receipts yielding commission income, the taxable income could not reasonably exceed ₹50 lakh, and the ultimately assessed escaped income was far below the threshold. The reopening was therefore barred by limitation and without jurisdiction; the appeal was allowed. - ITAT
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