Assessment u/s 153C and Unexplained Investments: A Case Study in Legal Reasoning

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..... assessments under section 153C read with section 144 of the Income-tax Act, 1961 for two consecutive assessment years. It highlights the complexities involved in tax assessments, the burden of proof, and the nuances of procedural aspects in tax law litigation. Procedural Background and Factual Matrix Delayed Appeals: The case began with the Tribunal condoning a delay in filing .....

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..... assessments, showcasing the impact of active engagement in the assessment process. Core Legal Issues and Tribunal s Analysis Jurisdiction Under Section 153C : A significant aspect was the assessee s failure to challenge the jurisdiction under section 153C . This omission was critical as section 153C pertains to assessments based on incriminating materials relating to a perso .....

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..... factors contributing to the incriminating nature of the material found. This emphasizes the principle that non-compliance and lack of transparency can lead to adverse inferences in tax assessments. Interest under Section 234A : The Tribunal's interpretation regarding the charging of interest for non-furnishing of returns under section 234A up to the date of the first assessment .....

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