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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Revisionary power U/s. 263 cannot be exercised on ground not covered in Re-Opening

Gulab Badgujar (HUF) Vs CIT (Central) (ITAT Pune) - Gulab Badgujar (HUF) Vs CIT (Central) (ITAT Pune) The question which arises is the exercise of revisionary jurisdiction by the Commissioner of Income Tax under section 263 of the Act against the order passed under section 143(3) r.w.s. 147 of the Act, wherein the assessment proceedings were re-opene...

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Reopening in absence of fresh tangible material to form an opinion is invalid

Best Cybercity (India) Pvt. Ltd. Vs. ITO (Delhi High Court) - Best Cybercity (India) Pvt. Ltd. Vs. ITO (Delhi High Court) In the present case all the material that was necessary for the AO to form an opinion regarding the transaction involving the Assessee and PACL was already available with the AO. There was no fresh tangible material on the basis of which th...

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Reopening notice based on satisfaction of some other authority is invalid

South Yarra Holdings Vs ITO (Bombay High Court) - South Yarra Holdings Vs ITO (Bombay High Court) It is a settled position in law that re-opening of an assessment has to be done by an Assessing Officer on his own satisfaction. It is not open to an Assessing Officer issue a reopening notice at the dictate and/or satisfaction of some other authority....

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Section 148 notice without Approval of Competent Authority is invalid

ITA Vs Kuber Fertilizers Pvt. Ltd. (ITAT Delhi) - ITO Vs Kuber Fertilizers Pvt. Ltd. (ITAT Delhi) There is no dispute that the notice u/s 148 was issued to the assessee in respect of assessment years, beyond the period of four years from the end of the relevant assessment years as contemplated under the proviso to sub section (1) of Section 151 of ...

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S. 147 AO cannot proceed mechanically & on erroneous information supplied to him by investigation wing

Akshar Builders and Developers Vs ACIT (Bombay High Court) - Akshar Builders and Developers Vs ACIT (Bombay High Court)  Even in a case where the return filed by the assessee is accepted without scrutiny, as per the settled law, the Assessing Officer can issue a notice of reopening of assessment provided he has reason to believe that income chargeable to tax...

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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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Recent Posts in "Reassessment"

Revisionary power U/s. 263 cannot be exercised on ground not covered in Re-Opening

Gulab Badgujar (HUF) Vs CIT (Central) (ITAT Pune)

Gulab Badgujar (HUF) Vs CIT (Central) (ITAT Pune) The question which arises is the exercise of revisionary jurisdiction by the Commissioner of Income Tax under section 263 of the Act against the order passed under section 143(3) r.w.s. 147 of the Act, wherein the assessment proceedings were re-opened on specific reasons recorded for re-op...

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Reopening in absence of fresh tangible material to form an opinion is invalid

Best Cybercity (India) Pvt. Ltd. Vs. ITO (Delhi High Court)

Best Cybercity (India) Pvt. Ltd. Vs. ITO (Delhi High Court) In the present case all the material that was necessary for the AO to form an opinion regarding the transaction involving the Assessee and PACL was already available with the AO. There was no fresh tangible material on the basis of which the AO could […]...

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Posted Under: Income Tax |

Reopening notice based on satisfaction of some other authority is invalid

South Yarra Holdings Vs ITO (Bombay High Court)

South Yarra Holdings Vs ITO (Bombay High Court) It is a settled position in law that re-opening of an assessment has to be done by an Assessing Officer on his own satisfaction. It is not open to an Assessing Officer issue a reopening notice at the dictate and/or satisfaction of some other authority. Therefore, on […]...

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Section 148 notice without Approval of Competent Authority is invalid

ITA Vs Kuber Fertilizers Pvt. Ltd. (ITAT Delhi)

ITO Vs Kuber Fertilizers Pvt. Ltd. (ITAT Delhi) There is no dispute that the notice u/s 148 was issued to the assessee in respect of assessment years, beyond the period of four years from the end of the relevant assessment years as contemplated under the proviso to sub section (1) of Section 151 of the […]...

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S. 147 AO cannot proceed mechanically & on erroneous information supplied to him by investigation wing

Akshar Builders and Developers Vs ACIT (Bombay High Court)

Akshar Builders and Developers Vs ACIT (Bombay High Court)  Even in a case where the return filed by the assessee is accepted without scrutiny, as per the settled law, the Assessing Officer can issue a notice of reopening of assessment provided he has reason to believe that income chargeable to tax has escaped assessment. The […]...

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Assessee cannot be blamed for non-disclosure if AO had such info during assessment proceeding

Rajbhushan Omprakash Dixit Vs DCIT (Bombay High Court)

Once the Department i.e. the Assessing Officer had certain information, material, or document before him during the assessment proceeding, irrespective of the source of such information, material, or document, the Assessee cannot be blamed for non-disclosure thereof....

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S.147 Basic condition of ‘reason to believe’ applies even to s.143(1) intimations

Ankita A. Choksey Vs ITO (Bombay High Court)

Ankita A. Choksey Vs ITO (Bombay High Court) Even in cases where the return of income has been accepted by processing under Section 143(1) of the Act, re-opening of an assessment can only be done when the Assessing Officer has reason to believe that income chargeable to tax has escaped assessment. The mere fact that […]...

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Reassessment for Change of opinion not objected during Assessment- HC dismisses writ petition

M/s. Hanon Automotive Systems India Private Limited Vs DCIT (Madras High Court)

Firstly, we may observe that the learned Single Judge was absolutely right in holding that the Assessee, having not raised an objection before the Assessing Authority to the re-opening of the assessment under Section 147/148 of the Act, should be deemed to have acquiesced to the same. Nothing prevented the Assessee from raising the objec...

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Reassessment by sending section 148 notice to old address of assessee is invalid

Veena Devi Karnani Vs Income Tax officer (Delhi High Court)

Veena Devi Karnani Vs ITO (Delhi High Court) Rule 127(2) clearly states that the addresses to which a notice or summons or requisition or order or any other communication may be delivered or transmitted shall be either available in the PAN database of the assessee or the address available in the income tax return to […]...

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Reassessment not valid if Notice under section 143(2) not issued

Pr. CIT Vs Kamla Devi Sharma (Rajasthan High Court)

The issue of notice under section 143(2) in reassessment proceedings, prior to finalizing re-assessment order, cannot be condoned by referring to section 292BB and it was fatal to the order of reassessment....

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