Reassessment - Page 30

Reassessment to disallow claim allowed earlier by change of opinion not permissible

Commissioner of Income-tax Vs Maruti Suzuki India Ltd. (Delhi High Court)

This is a clear case where the primary facts were available before the AO, and therefore, the assessee cannot be held to have failed to disclose "fully and truly all material facts". In our opinion, it was for the AO to draw the appropriate inference. The assessee is/was under no obligation to draw the inference of fact or law based on th...

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Reassessment for thorough verification of manufacturing activity of Assessee not justified

Dynacraft Air Controls Vs Smt. Sneha Joshi (Bombay High Court)

For these reasons, we have come to the conclusion that the Petitions would have to be allowed. We accordingly allow the Petitions by quashing and setting aside the notices under section 148 of the Income-tax Act, 1961 purporting to re-open the assessment for A.Ys. 2005-06, 2006-07, 2007-08 and 2008-09. Rule is made absolute in the aforesa...

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Initiation of Reassessment based on change of opinion not valid

Ashwamegh Co.Op. Hous. Soc. Ltd. Vs Deputy Commissioner of Income-tax (Gujarat High Court)

In the present case, the Assessing Officer having examined the entire claim threadbare, any deviation from his decision on the ground that the receipts of the assessee from sale of land should be treated as business income in and not as long term capital gain must be taken to be a change of opinion. It may be that in the assessment order,...

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If there is no failure on the part of assessee to disclose income, there was no escapement of income

CIT Vs. Bhushan Capital and Credits Services Ltd. (Delhi High Court)

In the reopened assessment, the AO has taken the view that the amount in fact did not represent any capital gains on sale of shares, but represented the undisclosed income of the assessee brought in by means of an accommodation entry given by My Money Security Pvt. Ltd. Accordingly he brought the amount to tax with the narration undisclo...

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Reassessment not valid if reasons recorded by AO were not sufficient ‘reasons to believe’

The Commissioner of Income Tax- 3 Vs ICICI Bank Ltd. (Bombay High Court)

The Assessing Officer while reassessing the respondent by an order dated 26/3/2002 has in fact taken a ground different from the grounds in the reasons recorded for reopening the assessment under Section 148 of the said Act. The reasons furnished for reopening the assessment alleged that non fund income had been shown in fund based income...

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Reassessment to disallow Directors fees not valid if rationale already been explained during Assessment

OHM Stock Brokers (P.) Ltd. Vs Commissioner of Income Tax-4, Mumbai (Bombay High Court)

Though the power of the A.O. to reopen an assessment within a period of four years is indisputably wider than when an assessment is sought to be reopened beyond four years, the power is nonetheless not unbridled. After the amendment which was brought in by the Direct Tax Laws Amendment Act, 1987 with effect from 1 April 1989, the A.O. mus...

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Reassessment invalid on failure of AO to take note of information furnished during assessment

Deputy Commissioner of Income-tax (LTU) Vs Hyundai Motor India Ltd. (ITAT Chennai)

In our considered opinion, the notice issued under section 148 of the Act is nothing but mere change of opinion. The issues which have already been considered in the original assessment cannot be reappreciated in reassessment proceedings under the garb of income escaping assessment. If the Assessing Officer has not given any finding after...

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Transaction once accepted as genuine in assessment can’t be raised in reassessment proceedings

Commissioner of Income-tax Vs Smt. Saroj Agarwal (Allahabad High Court)

The assessee disclosed capital gain and claimed exemption under section 54F on the ground that entire sale proceeds were invested in construction of house property. In the original assessment proceedings, the Assessing Officer, denied exemption on ground that construction of house property was complete before the date of transfer of share...

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Exclusion of time in computing period of limitation for completion of assessments & reassessments

The existing provisions of section 153, inter alia, provide the time limit for completion of assessment and reassessment of income by the Assessing Officer. Explanation to section 153 provides that certain periods specified therein shall be excluded while computing the period of limitation for the purposes of the said section. Under the e...

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Reassessment – Deduction U/s 80-IC on manufacturing of PET bottles?

Ajay Kumar Sharama Vs Commissioner of Income Tax And ANR (Delhi High Court)

Insofar as the other assessment years are concerned where the issue of limitation of four years does not arise, the position would not be any different. This would be so because on a reasonable interpretation of the provisions of section 80-IC(2) read with serial No. 20 of the 13th schedule of the said Act read with the first schedule to ...

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September 2020