#assessment validity

The ITAT Delhi has ruled that reassessments under Section 153C cannot proceed if the deemed date of search falls on or after April 1, 2021, due to the Finance Act 2021 amendment that eliminated the power to initiate such proceedings beyond that date. This decision protects taxpayers from retrospective application of reassessment powers and clarifies the temporal limits of search-related assessments under the Income Tax Act.

ITAT Kolkata holds that any income tax assessment framed by an Assessing Officer beyond their prescribed pecuniary jurisdiction under CBDT Instruction 1/2011 is null and void from the outset, regardless of substantive correctness. This reinforces that jurisdictional compliance is a mandatory precondition for validity, affecting all assessees and tax authorities navigating delegated powers under the Income Tax Act.

Delhi ITAT rules that reassessment proceedings beyond three years from the assessment year are void if sanctioned by the Principal Commissioner of Income Tax (PCIT) instead of the Principal Chief Commissioner of Income Tax (PCCIT). The ruling underscores strict compliance with Section 151, invalidating reassessment notices issued without proper authority.

ITAT Delhi quashed an assessment order after the Assessing Officer failed to issue a Section 143(2) notice within the statutory six-month period from the end of the relevant previous year. The ruling reinforces strict compliance with CBDT Instruction No. 1/2011, invalidating assessments based on belated notices.

ITAT Delhi rules that a combined approval under Section 153D for multiple assessment years renders search-based assessments invalid. The decision reinforces procedural compliance as jurisdictional, impacting all search assessments requiring individual approvals.