Jurisprudentiol– Tomorrow's cases

By Vijay Kumar

Legal Corner Icon — the image was hosted by the publisher and was not captured.Income Tax

Block assessment - if AO accepts block return and does not investigate on his own, no notice u/s 143(2) is required - but if fresh inquiry is done, notice is mandatory as it is substantive right of assessee - lack of notice does not make assessment merely irregular but invalidates it: Delhi HC

EARCH, followed by block assessment, is a regular exercise for the Income Tax Department. But, is block assessment a self-contained code? Does it really have nothing to do with the procedures of regular assessment? Can an Assessing Officer proceed to conduct his own investigation if he is not too keen to accept the return for the block period without issuing any notice u/s 143(2)? Subscribing to the views of the Guwahati HC on this issue the Delhi HC has held that if the AO accepts the block return and does not embark on any investigation he is not required to issue any notice u/s 143(2) and can complete the assessment and pass the order under section 158 BC (c). But if he declines the return, it is mandatory for him to issue notice u/s 143(2) as giving an opportunity to the assessee to present materials relevant for assessment is not an empty formality but a substantive right which cannot be denied to the assessee. And if the AO skips the notice u/s 143(2) it does not merely render the assessment irregular but invalidates it.

TN GST

Where certain items which are not included in the turnover are disclosed in the dealer's own account books and the assessing authorities include these items in the dealers' turnover disallowing the exemption, penalty cannot be imposed; No interference on factual findings – Supreme Court

THE Supreme Court found that the authorities have factually adjudicated the issues. The High Court has observed that the factual scenario was identical. The conclusions arrived at by the revenue authorities and the High Court that in fact what was sold was a complete wet grinder which was a new commodity and not merely parts thereof. This being a factual finding, there is no scope for interference in these appeals so far levy of tax is concerned.

Customs

Seizure of cash- High Court ought not to have granted unconditional release – Supreme Court

THE main point in this civil appeal is: whether misdeclaration of description and value in the facts and circumstances of this case constituted "smuggling" as defined in Section 2(39) of the Customs Act. Another issue is whether the High Court was justified in ordering unconditional release of the currency which allegedly represented the sale-proceeds of the misdeclared goods, which, if proved, were liable to be confiscated under Section 111 or Section 113.

See our columns Tomorrow for the judgements