Four Important Judgements On Controversial Topics That You Must Be Aware Of

CIT vs. Dimension Apparels Ltd (Delhi High Court)

S. 143(3) assessment on amalgamating company is a nullity. U/s 170(2) assessment has to be on successor. Mistake cannot be cured u/s 292B. Participation by amalgamating company is irrelevant as there is no estoppel against a statute
(i) Section 481 of the Companies Act provides for dissolution of the company. The Company Judge in the High Court can order dissolution of a company on the grounds stated therein. The effect of the dissolution is that the company no more survives. The dissolution puts an end to the existence of the company. It […]

ITO vs. N. C. Cables Ltd (ITAT Delhi)

S. 147/ 151: Sanction by the CIT with word "approved" without recording satisfaction note renders reopening invalid
(i) A simple reading of the provisions of Sec. 151(1) with the proviso clearly show that no such notice shall be issued unless the Commissioner is satisfied on the reasons recorded by the AO that it is a fit case for the issue of notice which means that the satisfaction of the Commissioner is paramount […]

ACIT vs. Devesh Kumar (ITAT Delhi)

S. 147 Reopening solely on the basis of information received from the investigation wing & without independent application of mind is void
The AO proceeded to initiate proceedings u/s 147 of the Act and to issue notice u/s 148 of the Act on the basis of information received from Investigation Wing of the department in the form of a CD prepared by Shri Sanjay Shah and Shri Vishesh Prakash, ITOs of Unit V, New Delhi. Subsequently, the […]

Johnson & Johnson Ltd vs. ACIT (ITAT Mumbai)

"Innovative" method of department of forcing hapless assessees to give "consent letters" for tax recovery deplored and warning issued

At this time it came to the light that the AO has followed an innovative method of collecting taxes despite specific directions of the Bench. Therefore we had called the AO who had collected the revenue by flouting the directions of the Bench. Shri Vishal Makawane, DDIT (Inv), Unit-VII(1), Mumbai appeared before us and tendered […]