Co-operative society's mandatory reserve and share capital fixed deposits with banks-interest treated as business income under 80P(2)(a)(iii) deductio...
Income tax reassessment reopening after four years on investigation tip, without s.147 proviso disclosure failure, struck down as borrowed satisfactio...
Whether the assessment order was valid when the AO assessed receipts on a substantive basis despite binding DRP directions to compute income only on a protective basis under s. 44DA was the dominant issue. Since the DRP had accepted taxability on the footing of a PE but expressly limited computation to a protective basis, the AO's substantive assessment amounted to exceeding jurisdiction and violating mandatory directions under the statutory scheme. Consequently, the final assessment order, having been passed in breach of DRP directions, was held void ab initio and quashed, with the assessee's additional ground allowed. - ITAT
Whether the assessment order was valid when the AO assessed receipts on a substantive basis despite binding DRP directions to compute income only on a protective basis under s. 44DA was the dominant issue. Since the DRP had accepted taxability on the footing of a PE but expressly limited computation to a protective basis, the AO's substantive assessment amounted to exceeding jurisdiction and violating mandatory directions under the statutory scheme. Consequently, the final assessment order, having been passed in breach of DRP directions, was held void ab initio and quashed, with the assessee's additional ground allowed. - ITAT
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