ITA 8052/MUM/2025

Parties Involved

Facts Summary

L N Enterprises, a distributor of Polycab India Limited, was subject to a search and seizure action under section 132 of the Income-tax Act, 1961, on 22.12.2023. The Assessing Officer alleged unaccounted cash sales and non-genuine book entries based on seized data and statements recorded during the search. The assessee filed its returns of income and was subsequently selected for compulsory scrutiny. The Assessing Officer issued a notice under section 143(2) and passed an assessment order under section 143(3). The assessee challenged the validity of the assessment and the additions made by the Assessing Officer. The Revenue appealed against the relief granted by the Commissioner of Income-tax (Appeals). The Tribunal considered the jurisdictional validity of the assessment and the compliance with statutory requirements.…

Legal Issues

• 1. Whether the assessment for A.Y. 2023-24 could validly be initiated and completed under the ordinary scrutiny provisions of sections 143(2) and 143(3) without recourse to sections 147 and 148.
• 2. Whether the assessment could be validly completed without the prior approval contemplated by section 148B.

Judgment Outcome

Decided in favour of Partly Assessee / Partly Revenue.

Precedents Relied Upon

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