Navigating the Bounds of Tax Law: Supreme Court's Verdict on Section 153-C Assessments

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....s under Section 153-C of the Income Tax Act, 1961. The appeals were against a High Court decision [2018 (5) TMI 2115 - DELHI HIGH COURT] which had set aside assessment orders under this section, primarily on the grounds that no incriminating material was discovered during the search operations either from the assessee or any third party. Legal Context and Supreme Court's Decision Section 153....

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....#39;s decision, stated that the absence of incriminating material directly impacts the validity of assessments under Section 153-C. The Court's stance reiterates the necessity of concrete evidence for tax assessments post-search operations, ensuring that such assessments are not conducted arbitrarily. However, the Court's observation on the possibility of initiating re-assessment proceedi....

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....specific conditions, underscoring the dynamic nature of tax law interpretation and enforcement. Comprehensive Summary of the Judgment The Supreme Court dismissed a batch of appeals by the Revenue against a High Court decision that had set aside assessment orders under Section 153-C of the Income Tax Act, 1961. The dismissals were based on the finding that no incriminating material was discovered....