India's ITAT quashes assessment orders, orders fresh hearing in tax case

The Delhi bench of the Income Tax Appellate Tribunal (ITAT) invalidated the entire assessment proceedings initiated under Section 153C of the Income Tax Act against Alankit Group and its principals. The tribunal held that the satisfaction note recorded by the assessing officer failed to meet the mandatory legal requirements, describing the note as "legally defective and invalid" and consequently quashing the notice and assessment orders.

The Rajkot bench of the ITAT ruled that an application for registration under Section 12AB of the Income Tax Act cannot be rejected solely on the ground that the applicant failed to furnish supporting documentary evidence. The tribunal observed that "we have carefully considered the facts of the case and the material available on record" and ordered that the trust be given a fresh opportunity to submit all relevant documents before the Commissioner of Income Tax (Exemptions).