Case Law Details
Vasanthi Ramdas Pai Vs ITO (Karnataka High Court)
Karnataka HC ruling on whether order u/s 148A(d) can travel beyond the grounds noted in Notice u/s 148A(b) of IT Act
This judgement is one where comparison between old and new law and the implications of changes which have been made under the new law has been considered threadbare and will be helpful in any reassessment proceeding.
The Hon’ble Karnataka High court in this case was considering validity of reassessment proceedings in relation to certain transactions of sale of shares which shares were received upon demerger of an undertaking which happened in pursuance of the approval of the National Company Law Tribunal(NCLT) after NOC from the department. The court after exchange of arguments noted as follows:-
1. The provisions of Section 148A employs the word “Shall” which means that AO has to objectively consider not only the material gathered but the reply given by the assessee as well.
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