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The assessment year in Indian income tax law refers to the 12-month period during which income earned in the previous year is taxed. This page provides latest judgments, case analyses, and updates from Indian courts and tribunals on assessment year determination, reassessment timelines.
ITAT Jaipur quashes Section 153C assessment for AY 2014-15, ruling seized agreement dated 2012 irrelevant as it pertained to a prior year. The ruling clarifies jurisdictional limits on incriminating material under Section 153C, impacting future assessments based on third-party searches.
ITAT Delhi rules that the 10-year block period for assessments under Section 153C of the Income Tax Act commences from the date of the satisfaction note recording incriminating material against the assessee, not the original search date. This holding invalidates assessments for AYs 2010-11 to 2013-14, reinforcing the jurisdictional High Court precedent in PCIT Vs. Ojjus Medicare Pvt. Ltd. and clarifying the limitation framework for search-based assessments.
ITAT Delhi rules that reassessment under Section 153C of the Income Tax Act is invalid if the satisfaction note is recorded after 01.04.2021, as only Section 148 proceedings are permissible thereafter. The ruling underscores strict compliance with jurisdictional timelines, impacting tax authorities' assessment powers.
ITAT Agra rules that Section 68 of the Income Tax Act cannot apply to loans outstanding as opening balances from prior assessment years. The tribunal deleted a Rs 6.5 lakh addition, setting a key precedent that unexplained cash credit provisions are inapplicable to pre-existing liabilities, offering relief to taxpayers facing similar assessments.
The Gauhati High Court reaffirmed that a tax amendment effective from April 1 governs the assessment of income earned in the preceding financial year, aligning with the Supreme Court's precedent in Karimtharuvi Tea Estate Ltd. vs. State of Kerala. This ruling underscores that tax liability is determined by the law in force on the first day of the assessment year, not the financial year of income accrual, impacting agricultural income tax assessments under the Assam Agricultural Income Tax Act.
ITAT Delhi holds that search-based assessments must be framed under Section 153A, not Section 143(3), when the last panchnama is dated in the subsequent financial year.
ITAT Delhi holds that approval under Section 153D must be granted separately for each assessment year with independent application of mind, invalidating mechanical or composite approvals.