Reassessment

Time Limits for Issuance of Notices, Orders under Different Sections of Income Tax Act, 1961

Income Tax - Income Tax Act, 1961 contains different time limits for issuance of notice, filing of application, completion of assessments, passing of penalty order under several sections. Hence, for the ease of reference for professionals and students ...

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Compliance required u/s 151 r.w.s. 148 of Income Tax Act, 1961

Income Tax - As per section 151, no notice shall be issued under section 148 by an Assessing Officer, after the expiry of a period of four years from the end of the relevant assessment year, unless the Principal Chief Commissioner or Chief Commissioner or Principal Commissioner or Commissioner is satisfied, on the reasons recorded by the Assessing O...

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Assessment/Re-assessment Procedure u/s. 147 of Income Tax Act, 1961

Income Tax - Assessment/Re-assessment is a procedure adopted to determine the correctness of the income disclosed by the assessee and tax payable thereon. Than what is reassessment and why there is need of reassessment? Section 147 and 148 of Income Tax Act is a well designed weapon for the Income Tax Department empowering it to assess, re-assess or...

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Assessment or Reassessment Notice U/s 148

Income Tax - The power of assessment or reassessment of any income chargeable to tax that have escaped assessment has been provided under section 147 r w s 148 of Income Tax Act of 1961. If the assessing officer has the reason to believe that any income chargeable to tax has escaped assessment then the assessing officer may subject to the provisions o...

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Why Effective Documentation a must for Income Tax Assessment Procedures?

Income Tax - Documentation can play a pivotal role in ensuring correct tax impact. It reduces great amount of time and energy of the company, advisors, auditors and most importantly the judiciary system....

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Notices for assessment/reassessment of income of old cases

Income Tax - Under the provisions of Income-tax Act, 1961, notices for assessment/reassessment of income of old cases of more than six years from the end of the relevant assessment year can be issued only in the following exceptional situations: i. Under clause (c) of sub-section (1) of section 149 of the Act, in cases where income in […]...

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Return revised to change cash balance /Income may face Scrutiny

Income Tax - It is brought to the notice of tax payers that any instance coming to the notice of Income-tax Department which reflects manipulation in the amount of income, cash-in-hand, profits etc. and fudging of accounts may necessitate scrutiny of such cases so as to ascertain the correct income of the year and may also attract penalty/prosecution ...

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No Reopening of Assessment to be made on Audit Objections: Committee Recommends

Income Tax - One of the key sources of dispute is the existing arrangement for follow up on audit objections by Internal Audit Party and the Revenue Audit Party. In terms of the existing arrangement, the Assessing Officer is required to take corrective steps following audit objections. The corrective measures take the form of rectification or reassess...

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SC issues notice to Amitabh Bachchan

Income Tax - NOTICE TO AB Sr. The Supreme Court has issued a notice to Mr. Amitabh Bachchan regarding his case for A.Y. 02-03 on a petition from the revenue. On 13th October, 2002, Mr. Bachchan filed his return for the year stating his income to be Rs. 14.99 crore, later on 31st March, 2003, he filed a […]...

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Government shouldn’t reopen old tax assessment cases -Assocham

Income Tax - ASSOCHAM wants correction as FM begins pre-budget consultations Showing a grave concern over the fact that notices for reopening of assessments by the tax authorities are being issued in thousands in recent times, ASSOCHAM today said returns should not be re-opened beyond three years. As Finance Minister P Chidambaram has started his pre-...

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Reason to believe that Income has escaped Assessment applies even in case of non-filing of return

Mohanlal Champalal Jain Vs ITO (Bombay High Court) - Mohanlal Champalal Jain Vs ITO (Bombay High Court) Assessing Officer has proceeded on wrong premise that even when called upon to state why the petitioner had not filed return of income, he had not responded to the said query. The petitioner did communicate to the Department that he had no taxable i...

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Notice for reopening of assessment against a dead person is invalid

Rupa Shyamsundar Dhumatkar Vs ACIT & Ors. (Bombay High Court) - Impugned notice of reopening of assessment was issued on a dead person. There are several judgments of different High Courts holding that the notice or reopening of assessment is invalid in law. Suffice it to say, as per the settled law, notice for reopening of assessment against a dead person is in...

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Reassessment when Assessee made AO left with little time to complete assessment

Cenveo Publisher Services India Ltd Vs. UOI (Bombay High Court) - Cenveo Publisher Services India Ltd Vs. UOI (Bombay High Court) In this case the petitioner raised objections promptly after withdrawing the petition from this Court, would not in any manner dilute the fact that it was on the ground of the petitioner’s conduct that the Assessing Officer was le...

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Reassessment invalid if notice U/s. 143(2) not issued after notice u/s 147/148

ITO Vs S. M. Batha Education Trust (ITAT Pune) - ITO Vs S. M. Batha Education Trust (ITAT Pune) In the absence of pending return of income, the provisions of section 143(2) of the Act is clear that notice can be issued only when a valid return is pending for assessment. Reassessment proceedings is invalid if notice U/sec.143(2) is issued prior to ...

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Reassessment on change of opinion on provision for bad & doubtful debts is invalid

CIT Vs. M/s. Indian Potash Ltd. (Madras High Court) - CIT Vs. M/s. Indian Potash Ltd. (Madras High Court) The Tribunal has recorded a factual finding that the Assessee has disclosed the figure of provision for bad debts and doubtful debts and interest income also in the Profit and Loss Account submitted along with the return of income. Therefore, the T...

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No Reopening for mere increase in Turnover due to demonetisation

Circular No. 40/2016-Income Tax - (09/12/2016) - Mere increase in turnover, because of use of digital means of payment or otherwise , in a particular year cannot be a sole reason to believe that income has escaped assessment in earlier years....

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Reassessment’s Popular Posts

Recent Posts in "Reassessment"

Reason to believe that Income has escaped Assessment applies even in case of non-filing of return

Mohanlal Champalal Jain Vs ITO (Bombay High Court)

Mohanlal Champalal Jain Vs ITO (Bombay High Court) Assessing Officer has proceeded on wrong premise that even when called upon to state why the petitioner had not filed return of income, he had not responded to the said query. The petitioner did communicate to the Department that he had no taxable income and therefore, there […]...

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Notice for reopening of assessment against a dead person is invalid

Rupa Shyamsundar Dhumatkar Vs ACIT & Ors. (Bombay High Court)

Impugned notice of reopening of assessment was issued on a dead person. There are several judgments of different High Courts holding that the notice or reopening of assessment is invalid in law. Suffice it to say, as per the settled law, notice for reopening of assessment against a dead person is invalid....

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Reassessment when Assessee made AO left with little time to complete assessment

Cenveo Publisher Services India Ltd Vs. UOI (Bombay High Court)

Cenveo Publisher Services India Ltd Vs. UOI (Bombay High Court) In this case the petitioner raised objections promptly after withdrawing the petition from this Court, would not in any manner dilute the fact that it was on the ground of the petitioner’s conduct that the Assessing Officer was left with little time to dispose of [&hell...

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Reassessment invalid if notice U/s. 143(2) not issued after notice u/s 147/148

ITO Vs S. M. Batha Education Trust (ITAT Pune)

ITO Vs S. M. Batha Education Trust (ITAT Pune) In the absence of pending return of income, the provisions of section 143(2) of the Act is clear that notice can be issued only when a valid return is pending for assessment. Reassessment proceedings is invalid if notice U/sec.143(2) is issued prior to filing of return […]...

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Reassessment on change of opinion on provision for bad & doubtful debts is invalid

CIT Vs. M/s. Indian Potash Ltd. (Madras High Court)

CIT Vs. M/s. Indian Potash Ltd. (Madras High Court) The Tribunal has recorded a factual finding that the Assessee has disclosed the figure of provision for bad debts and doubtful debts and interest income also in the Profit and Loss Account submitted along with the return of income. Therefore, the Tribunal held that there is […]...

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HC cannot dismiss Revenue’s appeal in limine holding that no substantial question of law involved

Pr. CIT Vs Nokia India Pvt. Ltd. (Supreme Court of India)

High Court was not justified in dismissing the appeal on the ground that the appeal did not involve any substantial question of law as it had to decide validity of s. 148 notice, whether notice based on change of opinion, assessed reasons to believe and findings recorded by ITAT on merits whether was legally sustainable. ...

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Reassessment order passed without disposal of objections raised by assessee is invalid

Golden Flame Steels Pvt. Ltd. Vs ITO (ITAT Delhi)

Reassessment order passed without disposal of objections raised by assessee by passing a speaking order by AO was illegal and invalid....

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Bogus Purchase: Reassessment based on info that assessee involved in the same is valid

Mr. Girish Narapatchand Kanungo Vs ITO (ITAT Mumbai)

Reassessment was rightly opened under section 147 by AO as he had received fresh and tangible material being incriminating information from DGIT(Inv.) which in turn was based on incriminating information received from VAT authorities that assessee to be beneficiary of alleged bogus purchases and it was sufficient to reopen  concluded ass...

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Reassessment based on material available during original scrutiny assessment not permitted

Precilion Holdings Limited Vs DCIT (Bombay High Court)

Precilion Holdings Limited Vs DCIT (Bombay High Court) Conclusion: AO was not permitted to reopen assessment merely because in the later year, he took a different view on the basis of similar material available at the time of original scrutiny assessment as there was no failure on the part of assessee to disclose truly and […]...

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HC quashes Notice for re-assessment based on change of opinion

Bharti Infratel Limited Vs DCIT (Delhi High Court)

Bharti Infratel Limited Vs DCIT (Delhi High Court) Conclusion: Notice for re-assessment issued under Section 148 against assessee-company was quashed as assessee had made full and true disclosure of material facts; nothing was concealed, withheld and left to be factually discovered in the form of ‘material’ mentioned in detail in acco...

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