Section 147

Reassessment when Income Tax Act not provide for it – Application of Article 142

Income Tax - Can the I-T department call for reassessment when the Income Tax Act, 1961 does not provide for it - Per Incuriam application of Article 142...

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What is assessment under the income tax act, 1961, and How many types of it are there?

Income Tax - What is assessment under the income tax act, 1961, and How many types of it are there?  Every taxpayer has to furnish the details of his income to the Income-tax Department. These details are to be furnished by filing up his return of income. Once the return of income is filed by the taxpayer, the […]...

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Proceedings for A.Y 2013-14 & 2014-15 cannot be reopened beyond 4 years

Income Tax - Proceedings for A.Y 2013-14 & 2014-15 cannot be reopened beyond 4 years even in the light of Apex Court Ashish Agarwal case if original assessments are completed: In cases where Scrutiny assessments were made for A.Y’s 2013-14 and 2014-15 after thorough verification of facts and material on record, subject to the true and full discl...

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Mere digitally signing of Section 148 notice cannot be regarded as issuance of notice

Income Tax - Mere digitally signing of the notice under section 148 of the Income-tax Act, 1961 cannot be regarded as the issuance of notice: Allahabad HC Introduction Whether digitally signing of the notice would automatically amount to issuance of notice? Whether digitally signing a notice and issuing it are two different acts? Whether issuance of n...

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Whether CBDT Instruction Dated 11.05.2022 Is Legally Correct?

Income Tax - Whether CBDT Instruction Dated 11.05.2022 Is Legally Correct? (Validity Of Notices Issued U/S 148 For Ay 2013-14, 2014-15, 2016-17 And 2017-18 After 31/03/2021) Consequent to the Hon’ble Supreme Court’s Judgment in case of UOI & Ors. Vs. Ashish Agarwal (Civil Appeal No 3005/2022) dated 04/05/2022 adjudicating the validity of reass...

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Request to clarify on SC judgement on Section 148 notices

Income Tax - Income Tax Gazetted Officers’ Association requested CBDT to issue Clarification in respect of the judgement of Hon’ble Supreme Court in the case of  Union of India Vs Ashish Agarwal ,Civil Appeal No. 3005/2022, Dated: 04/05/2022  in the matter of notices u/s 148 issued between 01-04-2021 to 30-06-2021 under the pre amended provisio...

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Indiscriminate Income Tax notices without allowing reasonable time

Income Tax - In view of Indiscriminate notices by income Tax Department without allowing reasonable time it is requested to Finance Ministry and CBDT that suitable steps should be taken so that adequate time is allowed for compliance and cases are not disposed of in a hurry, without giving adequate opportunity for the taxpayer to be heard. The [&helli...

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Extend Time Limit for Income Tax Assessment time barring on 31.3.2022

Income Tax - Lucknow CA Tax Practicioners Association has made a Representation to FM for Extension of Time Limit for Assessment cases time barring as on 31.3.22 under the Income Tax Act 1961 in view of Problems faced in completion of Reopened Assessment cases (letting time barred on 31st March 2022, Problems faced in completion of Assessment as [&hel...

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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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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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Reopening of assessment on Mere audit opinion not valid

Mobis India Limited Vs DCIT (Madras High Court) - Mobis India Limited Vs DCIT (Madras High Court) Hon’ble Supreme Court way back in 1979, in Indian and Eastern News Paper Society, put the issue beyond any pale of doubt by holding that the opinion on law rendered by an audit party cannot be the basis for exercising the power of reassessment. E...

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Reassessment without section 148 notice invalid even if assessee participated in proceedings

Dr. Shri Gurunath Shankarappa Wachche Vs ITO (ITAT Pune) - Dr. Shri Gurunath Shankarappa Wachche Vs ITO (ITAT Pune) Section 292BB provides that where an assessee has appeared in any proceedings etc., it shall be deemed that any notice under any provision of this Act, has been duly served upon him in time and such assessee shall be precluded from taking any ...

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Income Tax Reassessment invalid if AO failed to obtain requisite sanction u/s 151 from Pr. CIT

Sh. Ramesh Kumar Vs. Income Tax Officer (ITAT Amritsar) - Income Tax Reassessment invalid if A.O having jurisdiction over the case of the assessee had failed to obtain the requisite sanction u/s 151 of the Act from the Pr. CIT qua his ‘reasons to believe’...

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AO cannot calculate cost of acquisition on the basis of his own assumption

Savitri Devi Vs ITO (ITAT Amritsar) - Assessing authority had passed the order beyond his jurisdiction by calculating the cost of acquisition on basis of his own assumption....

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Change of opinion not base for reassessment proceedings

Ambarnuj Finance And Investment Pvt. Ltd Vs DCIT (Delhi High Court) - Delhi high court held that there was no new/ fresh material before AO to initiate reassessment proceedings, accordingly, mere change of opinion cannot form the basis for initiating reassessment proceedings...

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Carry out due verification before initiating Section 148/147 proceedings: CBDT

F. No. 299/10/2022-Dir(Inv.III)/647 - (22/08/2022) - Consequent to order passed by Allahabad High Court passing severe strictures and proposing to levy exemplary cost of Rs 50 lakhs in a writ challenging reopening of assessment on wrong facts,  CBDT today ( 22nd August, 2022 ) has issued instructions to all its officers that for initiating proceeding...

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Revised Guideline for Issue of Section 148 Notice

F.No.299/10/2022-Dir(lnv.III)/611 - (01/08/2022) - Salient features of new Section 148 to 151A 'i.e. assessment/reassessment procedure of Income Escaping Assessment...

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Section 148 Notices: Steps to follow in cases impacted by SC decisions

ITBA Step-by-Step Document No. 1 - (12/05/2022) - ITBA Step–by–Step Document No. 1 w.r.t. CBDT Instruction No. 1 of 2022Dated 12.05.2022 Steps to be followed in ITBA for the cases impacted by Hon’ble Supreme Court decision dated 04.05.2022 in the case of Union of India vs. Ashish Agarwal Dated 12.05.2022 NOTE: The AOs/ITBA users shoul...

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CBDT Instruction on Implementing SC Judgment on Section 148 Notices

Instruction No. 01/2022 - (11/05/2022) - CBDT issues Instruction No. 01/2022 regarding Implementation of Hon. Supreme Court’s Judgment in Union of India vs. Ashish Agrawal dated 04.05.2022 Instruction No. 01/2022 | Dated: 11th May, 2022 F. No 279/Misc./M-51/2022-ITJ Ministry of Finance Department of Revenue Central Board of Direct T...

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Faceless Assessment in Cases in which limitation period expires on 30.09.2021

F No. 187/3/2020-ITA-I - (22/09/2021) - Central Board of Direct Taxes hereby directs that in addition to the exclusion of the cases in the said Orders, cases (a) set aside to be done de novo or (b) to be done u/s 147 of the Act...

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Recent Posts in "Section 147"

Reopening of assessment on Mere audit opinion not valid

Mobis India Limited Vs DCIT (Madras High Court)

Mobis India Limited Vs DCIT (Madras High Court) Hon’ble Supreme Court way back in 1979, in Indian and Eastern News Paper Society, put the issue beyond any pale of doubt by holding that the opinion on law rendered by an audit party cannot be the basis for exercising the power of reassessment. Evaluation of law […]...

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Reassessment without section 148 notice invalid even if assessee participated in proceedings

Dr. Shri Gurunath Shankarappa Wachche Vs ITO (ITAT Pune)

Dr. Shri Gurunath Shankarappa Wachche Vs ITO (ITAT Pune) Section 292BB provides that where an assessee has appeared in any proceedings etc., it shall be deemed that any notice under any provision of this Act, has been duly served upon him in time and such assessee shall be precluded from taking any objection in any […]...

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Income Tax Reassessment invalid if AO failed to obtain requisite sanction u/s 151 from Pr. CIT

Sh. Ramesh Kumar Vs. Income Tax Officer (ITAT Amritsar)

Income Tax Reassessment invalid if A.O having jurisdiction over the case of the assessee had failed to obtain the requisite sanction u/s 151 of the Act from the Pr. CIT qua his ‘reasons to believe’...

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AO cannot calculate cost of acquisition on the basis of his own assumption

Savitri Devi Vs ITO (ITAT Amritsar)

Assessing authority had passed the order beyond his jurisdiction by calculating the cost of acquisition on basis of his own assumption....

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Change of opinion not base for reassessment proceedings

Ambarnuj Finance And Investment Pvt. Ltd Vs DCIT (Delhi High Court)

Delhi high court held that there was no new/ fresh material before AO to initiate reassessment proceedings, accordingly, mere change of opinion cannot form the basis for initiating reassessment proceedings...

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Reassessment based on same material examined in regular assessment is erred in law

Hindustan Marble Pvt. Ltd. Vs Asst. CIT (Gujarat High Court)

Gujarat High Court held that change of opinion on the part of the Assessing Officer acting on the same material which was examined by him in the regular assessment is erred in law....

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ITAT directs AO to consider Additional Evidence related to cash deposit

Dr. BR Ambedkar Jain Kalyan Swayam Sahayata Samiti Vs ITO (ITAT Delhi)

Dr. BR Ambedkar Jain Kalyan Swayam Sahayata Samiti Vs ITO (ITAT Delhi) Undisputedly, in course of assessment proceeding the assessee went unrepresented, for whatever may the reason. Therefore, the assessee did not get any opportunity to explain the source of cash deposits made in the bank account with supporting evidence. However, before ...

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Writ cannot be filed against sufficiency or adequacy of reasons for Income Tax Reassessment

Pramod Kumar Vs ACIT (Telangana High Court)

Pramod Kumar Vs ACIT (Telangana High Court) HC is of the view that present is not a fit case to interdict the proceedings at the very threshold. Reasons have been assigned by the assessing officer as to why the explanation given by the petitioner could not be accepted. Certainly, such reasons given have a nexus […]...

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Re-assessment proceedings against non-existent entity – HC remands matter back to AO

Bit-Byte Investment Services Pvt. Ltd Vs DCIT (Delhi High Court)

Re-assessment proceedings were sought to be initiated against a non-existent company as it had amalgamated with Petitioner and income of assessee had already been accounted for in books of accounts of Petitioner....

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Disclosure before criminal investigation wing cannot be treated as disclosure’ before assessing officer in assessment

RKR. Gold P. Ltd Vs ACIT (Madras High Court)

RKR. Gold P. Ltd Vs ACIT (Madras High Court) The criminal investigation wing is separate and distinct from the assessment wing and disclosure made before one wing will not exonerate the petitioner from the requirement of making a ‘full and true disclosure’ before the assessing officer in assessment. In fact, the apparent difference in...

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