Section 148

Conditions Precedent for Reopening of Assessment beyond 4 Year- Section 147

Income Tax - In view of the Proviso to s. 147, merely having a reason to believe that income had escaped assessment is not sufficient to reopen assessments but it must be specifically alleged by the AO in the recorded reasons that the escapement was on account of the failure of the assessee to make a full and true disclosure of material facts. In the ...

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Cost Audit Provisions | Section 148 | Companies Act, 2013

Income Tax - 1. Section 148(1) The CG may by order, in respect of class of companies engaged in the production of such goods or providing such services, direct that particulars relating to the utilization of material or labour or to other items of cost shall also included in the books of account kept by that class of […]...

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Issues in Respect of Reopening of Assessment

Income Tax - Mr. Jay Kishor Mishra, IRS (IT: 1993) CIT (DR)(ITAT)-4, Delhi jkmishrairs@gmail.com Mr. Jay Kishor Mishra is an officer of the 1993 batch of the Indian Revenue Service. He is a Graduate in Economics and Post Graduate in Sanskrit. He is an LLB and also holds Post Graduate Diploma in Management. Ms Sushama Singh, IRS (IT: […]...

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Issue of Notice/Assessment Order in the Name of ‘Deceased Person’ or ‘Amalgamated/Merged Company’

Income Tax - It is noticed that the department has lost the revenue in number of cases mainly on account of fatal mistake made by the AO in issuance of notice to dead person/ non-existent entity or in framing the assessment order in the name of dead person/non-existent entity....

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Comprehensive Guide to Reopening of Assessments Under the Income Tax Act, 1961

Income Tax - Reopening of an assessment is one of the weapons in the armoury of the Income tax Department, it empowers assessing officer to reassess or recompute the income of an assessee which has escaped assessment.  Section 147 to 153 of the Income tax Act, 1961 [ Act] deals with the provisions of reassessment proceedings.  The said […]...

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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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Bofors Scam –Quattrochi case can not be reopened U/s. 148 and 149

Income Tax - The income-tax department's hands are tied by the law even if it wants to go after Ottavio Quattrocchi, following the observations of the Income Tax Appellate Tribunal (ITAT). Sections 148 and 149 of the Income Tax Act prevent authorities from reopening assessment in any case that goes beyond six years....

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ITAT – Anguish over ITAT deciding case on a casual, offhanded and cavalier manner – Delhi HC

Income Tax - The High Court noted with anguish that even at the second appellate stage the matters are being dealt with in such a casual manner. The High Court stated that it did not expect the Tribunal, which the highest fact-finding authority in matters relatin...

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Section 50 applicable only on block of assets used for business and on which depreciation been claimed

Anant Raj Ltd. Vs DCIT (ITAT Delhi) - Anant Raj Ltd. Vs DCIT (ITAT Delhi) Assessment order cannot contain each and every fact verified by the assessing officer and assessment cannot be reopened on the basis of mere change of opinion It is a settled law that the assessment cannot be reopened on the basis of mere change of opinion on the ...

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Section 148 Notice to Legal heirs after expiry of limitation period is invalid

Sh. Shambhu Dayal, Ravi Dutt, Gori Shankar Rajesh Rohit L/h Late Sh. Jhabar Mal (ITAT Jaipur) - Sh. Shambhu Dayal, Ravi Dutt, Gori Shankar Rajesh Rohit L/h Late Sh. Jhabar Mal (ITAT Jaipur) The undisputed facts are that the assessee, Shri Jhabar Mal Kumawat had expired on 10.10.2015 as noted by the AO in the assessment order. Thereafter, the reasons for reopening the assessment u/s 147 were re...

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Claim Allowed in Original Assessment Cannot be Amenable to Provisions of Section 147/148

TCG Development India Private Limited Vs ITO (ITAT Delhi) - The issue under consideration is whether the notice issued under section 147 for re-opening of assessment is justified in law? A claim which has been allowed in the original assessment proceedings after examination of the relevant details and facts cannot be amenable to provisions of Section 147/148...

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Re-Opening of Assessment u/s 147 Merely Relying upon Investigation Report Not Justified in Law

Eminent Computers Pvt. Ltd. Vs ITO (ITAT Delhi) - Eminent Computers Pvt. Ltd. Vs ITO (ITAT Delhi) The issue under consideration is whether the re-opening of assessment u/s 147 merely relying upon investigation report is justified in law? ITAT states that the return of income filed by the assessee has also been analyzed with reference to the informa...

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Complemented Assessment cannot be reopened U/s. 147/148 on Borrowed Satisfaction

Hitesh Ashok Vaswani Vs DCIT (ITAT Ahmedabad) - Hitesh Ashok Vaswani Vs DCIT (ITAT Ahmedabad) The power to reopen a completed assessment under Section 147 of the Act has been bestowed on the Assessing Officer, if he has reason to believe that any income chargeable to tax has escaped assessment for any assessment year. However, this belief that in...

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Important CBDT instructions on Issue of Section 147 & Section 133(6) Notice

F. No. System/ITBA/AIMS/2019-20/1942 - (28/02/2020) - Field formation should not carry out any enquiry u/s 133(6) or issue notice u/s 148 of the Act on the basis of the data presently available in either AIMS Module of the ITBA or the AIR information earlier shown in the ITD till further directions are issued....

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Consider Info related to Penny Stock in Scrutiny Assessment: CBDT

F.No.287/30/2014-IT (inv. II)-Vol-III - (16/03/2016) - Assessing Officer to ensure that information available in the 'Penny Stock' functionality which may be useful for the purpose of cases presently under scrutiny, is examined and considered while finalizing assessments and considering reopening of cases u/s 148 of the IT Act, 1961. ...

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Section 148’s Popular Posts

Recent Posts in "Section 148"

Section 50 applicable only on block of assets used for business and on which depreciation been claimed

Anant Raj Ltd. Vs DCIT (ITAT Delhi)

Anant Raj Ltd. Vs DCIT (ITAT Delhi) Assessment order cannot contain each and every fact verified by the assessing officer and assessment cannot be reopened on the basis of mere change of opinion It is a settled law that the assessment cannot be reopened on the basis of mere change of opinion on the same […]...

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Section 148 Notice to Legal heirs after expiry of limitation period is invalid

Sh. Shambhu Dayal, Ravi Dutt, Gori Shankar Rajesh Rohit L/h Late Sh. Jhabar Mal (ITAT Jaipur)

Sh. Shambhu Dayal, Ravi Dutt, Gori Shankar Rajesh Rohit L/h Late Sh. Jhabar Mal (ITAT Jaipur) The undisputed facts are that the assessee, Shri Jhabar Mal Kumawat had expired on 10.10.2015 as noted by the AO in the assessment order. Thereafter, the reasons for reopening the assessment u/s 147 were recorded and after seeking approval [&hell...

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Claim Allowed in Original Assessment Cannot be Amenable to Provisions of Section 147/148

TCG Development India Private Limited Vs ITO (ITAT Delhi)

The issue under consideration is whether the notice issued under section 147 for re-opening of assessment is justified in law? A claim which has been allowed in the original assessment proceedings after examination of the relevant details and facts cannot be amenable to provisions of Section 147/148 of the Act....

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Re-Opening of Assessment u/s 147 Merely Relying upon Investigation Report Not Justified in Law

Eminent Computers Pvt. Ltd. Vs ITO (ITAT Delhi)

Eminent Computers Pvt. Ltd. Vs ITO (ITAT Delhi) The issue under consideration is whether the re-opening of assessment u/s 147 merely relying upon investigation report is justified in law? ITAT states that the return of income filed by the assessee has also been analyzed with reference to the information received from the Investigation Win...

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Complemented Assessment cannot be reopened U/s. 147/148 on Borrowed Satisfaction

Hitesh Ashok Vaswani Vs DCIT (ITAT Ahmedabad)

Hitesh Ashok Vaswani Vs DCIT (ITAT Ahmedabad) The power to reopen a completed assessment under Section 147 of the Act has been bestowed on the Assessing Officer, if he has reason to believe that any income chargeable to tax has escaped assessment for any assessment year. However, this belief that income has escaped assessment has [&hellip...

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Section 147/148 proceedings on mere investigation wing information was not valid

Hitesh Ashok Vaswani Vs DCIT (ITAT Ahmedabad)

Hitesh Ashok Vaswani Vs DCIT (ITAT Ahmedabad) In the present case the search information received from the investigation wing was used to form the reason to believe by the AO but without applying the mind. Thus the reasons were merely recorded on the borrowed satisfaction by the AO. The source for all the conclusions was […]...

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No reopening of Assessment after 4 Year if no failure of Assessee in disclosing relevant facts

CIT Vs Sterling Tree Magnum India Ltd. (Madras High Court)

CIT Vs Sterling Tree Magnum India Ltd. (Madras High Court) Learned Tribunal has categorically held that there was no failure on the part of the assessee, but disclosed the relevant facts and therefore, merely on the basis of the audit objection or change of opinion and re-assessment under Sections 147 & 148 of the Income […]...

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Additions in reopened Assessment not valid if no addition on subject matter of reopening

Sheela Foam Ltd. Vs DCIT (ITAT Delhi)

The issue under consideration is whether the re-opening of assessment is valid even if there is no addition on subject-matter being basis for issuing notice under section 148, rather AO made addition on other counts?...

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Reopening of assessment merely based on AIR Data is invalid

Raj Kumar Maheshwari Vs ITO (ITAT Jaipur)

CIT (A) upheld the reopening of the assessment by recording the reasons on incorrect facts. Hence in the facts and circumstances of the case, we find that the reopening of the assessment by the AO is without application of mind and simply going by the information received as per AIR Data. Hence the reopening of the assessment is quashed b...

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Reopening based on mere AIR Information without Application of Mind is Invalid

Raj Kumar Maheshwari Vs ITO (ITAT Jaipur)

The issue under consideration is whether the re-opening of assessment u/s 147 by AO is justified in law? The reopening of the assessment by the AO is without application of mind and simply going by the information received as per AIR Data. Hence the reopening of the assessment is quashed being invalid....

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Conditions Precedent for Reopening of Assessment beyond 4 Year- Section 147

In view of the Proviso to s. 147, merely having a reason to believe that income had escaped assessment is not sufficient to reopen assessments but it must be specifically alleged by the AO in the recorded reasons that the escapement was on account of the failure of the assessee to make a full and true disclosure of material facts. In the ...

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In absence of new facts reopening of already examined issue was invalid

Mina Kumari Sahoo Vs ITO (ITAT Cuttack)

Assessing Officer has taken into consideration the facts and estimated the profit taking into deposits in the bank accounts. Thereafter, there were no new facts before the Assessing Officer which could justify the reopening. On these facts, it was nothing more than change of mind by the Assessing Officer, and a reopening of assessment on ...

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Issue examined under original assessment proceeding cannot be reexamined

DCIT Vs Manav Realty (ITAT Pune)

DCIT Vs Manav Realty (ITAT Pune) It is evident from the reasons recorded by the AO that the initiation of reassessment proceedings was premised on the fact that the commencement took place at a date in variance with the one stated by the assessee in the original assessment proceedings. The ld. CIT(A) has aptly recorded […]...

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No Recourse with Revenue to Reconsider Similar Facts & Evidences

PCIT Vs Goyal Builders (Punjab & Haryana High Court)

The issue under consideration is whether the re-opening of assessment is justified if it is based on the similar issues and evidences which have been already considered in original assessment?...

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Section 147 Reassessment justified for Cash Deposit in Bank but not disclosed in ROI

Shri Pillu Ram Sahal Vs ITO (ITAT Jaipur)

The issue under consideration is whether the re-opening of assessement u/s 147 is justified in law?...

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AO cannot take second view on same set of facts treating earlier view as erroneous

Asian Satellite Broadcast Pvt. Ltd. Vs. ITO (Bombay High Court)

Asian Satellite Broadcast Pvt. Ltd. Vs. ITO (Bombay High Court) From the reasons recorded, order rejecting objections of the petitioner and the reply affidavit of respondent No.1 in the present proceeding, it is clearly discernible that the basis for re-opening of assessment was the two letters of departmental authorities dated 29.02.2018...

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No reopening of Assessment for mere client code modification

Stratagem Portfolio (P.) Ltd. Vs DCIT (ITAT Delhi)

Since there was no material to infer that client code modification had been done by assessee with malafide purpose of shifting of the profit or evasion of the tax hence, assessment could not be reopened under section 147 in absence of any tangible material to infer that income escaped in the case of assessee....

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Reopening of Assessment for mere Difference in Valuation Report Not Justified

Mukul Kumar Singh Vs CIT (Patna High Court)

The issue under consideration is whether the issue of notice u/s 147 for re-opening of assessment on the basis of difference in valuation report is justified in law?...

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Re-opening of concluded assessment not valid if no failure on the part of petitioner to disclose fully & truly all material facts

State Bank of India Vs. Vineet Agrawal, ACIT (Bombay High Court)

State Bank of India Vs. Vineet Agrawal (Bombay High Court) we are of the considered opinion that no reasonable view can be taken that there was failure on the part of the petitioner to disclose fully and truly all material facts necessary for its assessment for the assessment year 1990-91. If that be so then […]...

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Reopening not justified when all aspects were examined in original assessment proceedings

Nishit Fincap Pvt Ltd. Vs ITO (ITAT Delhi)

Nishit Fincap Pvt Ltd. Vs ITO (ITAT Delhi) Query No. 7 is in relation to share capital and share application money received. This means that specific query was raised in respect of share application money and vide reply dated 16.11.2009, the assessee furnished all details as required by the Assessing Officer. Pursuant to the reply [&helli...

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Reopening of Assessment not allowed to Form Change of Opinion

PCIT Vs Safe Corrugated Containers Pvt. Ltd. (Madras High Court)

The issue under consideration is whether the reassessment proceeding u/s 147 initiated to form change of opinion which clearly amount to reviewing the original order of assessment is justified in law?...

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Reopening without bringing out any fresh material on record is unjustified

ACIT Vs Shiv Offset India Pvt. Ltd. (ITAT Indore)

ACIT Vs Shiv Offset India Pvt. Ltd. (ITAT Indore) In the instant case the Ld. A.O had passed the original assessment taking into consideration of all the documents and facts of the case and again he had reopened the case without bringing out any fresh material on record and thus there was a mere change […]...

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AO cannot reopen a case to re-examine issue examined during original assessment

DCIT Vs Indian Metals & Ferro Alloys Ltd (ITAT Cuttack)

DCIT Vs Indian Metals & Ferro Alloys Ltd (ITAT Cuttack) In this case there is nothing to suggest that all the primary facts were not disclosed by the assessee at the time of original assessment completed u/s 143(3) of the Act nor any failure on the part of the assessee to disclose fully and truly […]...

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Assessment cannot be reopened u/s 147 Based on Material Assessed by AO in Original Assessment

Shri Dinesh Kumar Gupta Vs ITO (ITAT Agra)

The issue under consideration is whether reopen assessment u/s 147 based on the same material which is examined by AO in original assessment is justified in law?...

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Reopening in case of previously completed scrutiny cannot be taken up after 4 years

HLG Memorial Hospital Pvt. Ltd. Vs ACIT (ITAT Kolkata)

HLG Memorial Hospital Pvt. Ltd. Vs ACIT (ITAT Kolkata) In the reasons supplied to the petitioner, there is no whisper, what to speak of any allegation, that the petitioner had failed to disclose fully and truly all material facts necessary for assessment and that because of this failure there has been an escapement of income […]...

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Reopening to assess Income under different head due to change of opinion is invalid

ACIT Vs. Shri Rajendra Bhararia (ITAT Visakhapatnam)

Reopening of assessment to assess the remuneration under the head ‘income from salary’ instead of ‘income from other sources’ constitutes difference of opinion and the AO is not permitted to reopen the assessment on difference of opinion...

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Second Re-Assessment Notice Issued against Johnson & Johnson is Rejected by ITAT

Johnson & Johnson Private Limited Vs Add. CIT (ITAT Mumbai)

The issue under consideration is whether the re-opening of assessment u/s 147 of the Act is justified in law?...

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Section 147 Assessment invalid if reasons recorded for reopening not furnished

Shri Vijaykumar L. Jain Vs ITO (ITAT Pune)

The issue under consideration is whether Non-furnishing of reasons recorded for reopening of assessment made the entire assessment u/s 147 invalid in law?...

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No addition for other items if addition for reopening of reassessment not survives

Naresh Kumar Garg Vs ACIT (ITAT Delhi)

Naresh Kumar Garg Vs ACIT (ITAT Delhi) When the grounds for reopening the reassessment do not exist any longer and no additions were ultimately made on that account, the addition in respect of the other items, which were not part of the ‘ reasons to believe’cannot be made. ITAT states that it is evident that […]...

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Cost Audit Provisions | Section 148 | Companies Act, 2013

1. Section 148(1) The CG may by order, in respect of class of companies engaged in the production of such goods or providing such services, direct that particulars relating to the utilization of material or labour or to other items of cost shall also included in the books of account kept by that class of […]...

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Posted Under: Income Tax |

Reopening after 4 years in absence of failure of Assessee to disclose fully & truly all material facts necessary for assessment is invalid

ACIT Vs M/s Shiv Vegpro Pvt. Ltd. (ITAT Jaipur)

ACIT Vs Shiv Vegpro Pvt. Ltd. (ITAT Jaipur) Reopening after 4 years in absence of failure of Assessee to disclose fully & truly all material facts necessary for assessment is invalid AO has even not mentioned as on what account or transactions the assessee has taken the accommodation entry from Shree Ram Trading Co. It […]...

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Reopening of Assessment for Mere Change of Opinion is unjustified

PCIT Vs Shri. K. R. Jayaram (Madras High Court)

Whether the Tribunal was justified in holding that the reopening of assessment was a result of mere change of opinion, even when there is no opinion formed or expressed by the Assessing Officer on this issue in the original assessment?...

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Onus on Revenue to prove Assessee Paid Donation to College in Cash

Shri Sulekh Chand Singhal Vs ACIT (ITAT Delhi)

The issue under consideration is whether the addition made by AO merely based on the statement recorded under section 132(4) of the I.T. Act is justified in law?...

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Assessment cannot be Reopened if Assessee disclosed fully & Truly All Material Facts during Original Assessment

DCIT (LTU) Vs Gail (India) Ltd (ITAT Delhi)

The issue under consideration is whether the AO is correct in re-opening of the assessment under section 147 even though the assessee has disclose fully and truly all the material facts during original assessment?...

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Reassessment not sustainable when reasons for initiation of proceedings Seized to Survive

Raj Bala Vs ITO (ITAT Delhi)

Aince the AO has accepted the returned income for which reasons were recorded, therefore, for making any other addition, he should have issued fresh notice...

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Assessment reopening based on Wrong Appreciation of Facts is unsustainable

RMP Holding (P) Ltd. Vs ITO (ITAT Delhi)

The issue under consideration is whether the re-opening of assessment u/s 147 on the basis of wrong appreciation of facts can be sustained in law?...

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Issues in Respect of Reopening of Assessment

Mr. Jay Kishor Mishra, IRS (IT: 1993) CIT (DR)(ITAT)-4, Delhi jkmishrairs@gmail.com Mr. Jay Kishor Mishra is an officer of the 1993 batch of the Indian Revenue Service. He is a Graduate in Economics and Post Graduate in Sanskrit. He is an LLB and also holds Post Graduate Diploma in Management. Ms Sushama Singh, IRS (IT: […]...

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Posted Under: Income Tax |

Issue of Notice/Assessment Order in the Name of ‘Deceased Person’ or ‘Amalgamated/Merged Company’

It is noticed that the department has lost the revenue in number of cases mainly on account of fatal mistake made by the AO in issuance of notice to dead person/ non-existent entity or in framing the assessment order in the name of dead person/non-existent entity....

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Posted Under: Income Tax |

Bogus Purchase: Addition on peal credit basis for Low Margin & Low Vat Rate Items unjustified

Ashok S Vakharia HUF Vs ITO (ITAT Mumbai)

The issue under consideration is whether the CIT(A) is correct in confirming addition u/s 69C of the Act on account of unexplained purchases made during the year, calculated on the basis of peak credit?...

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Assessment cannot be Reopened based on data already disclosed in scrutiny assessment

Gateway Leasing Pvt. Ltd. Vs ACIT (Bombay High Court)

Gateway Leasing Pvt. Ltd. Vs ACIT (Bombay High Court) The issue under consideration is whether the re-opening of the assessment u/s 147 is justified in law? In the present case, after referring to the information received following search and seizure action carried out in the premises of Shri Naresh Jain, it was stated that information [&...

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AO recorded reasons on same returned income- Reassessment Invalid

Raj Bala Vs ITO (ITAT Delhi)

AO recording reasons on same returned income considering escaped assessment but making various other additions of other than accepted returned income declared invalid and deleted in light of Explanation 3 and held issuance of fresh notice u/s 148 on other issues is mandatory....

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HC denies relief in section 147 proceedings for not replying notice for 6 Months

Kuldip Kumar Goel Vs ACIT & Anr. (Delhi High Court)

he Supreme Court in GKN Driveshafts (India Ltd.) v. Income Tax Officer 259 ITR 19 (SC) has clarified that when a notice under Section 148 of the Income Tax Act is issued, the proper course of action for the notice is to file a return and if he so desire, to seek reasons for issuing notices....

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Section 54/54F exemption: ITAT directs AO to consider additional evidence

Hemalatha Mallapuram Vs ITO (ITAT Hyderabad)

The issue under consideration is whether the tribunal can give fresh opportunity to the assessee to submit evidence which assessee might not have been able to provide at the time of hearing?...

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ITAT quashes reopening as AO provided only a Part of reason recorded to Assessee

Wimco seedlings Ltd Vs JCIT (ITAT Delhi)

ITAT quashed reopening where reasons recorded by the assessing officer produced before the higher authority are quite different and whereas the extract given to the assessee was merely of two paragraphs...

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Merely reason to believe not sufficient to reopen assessments beyond 4 year period

Amrabathi Investra (P) Ltd. Vs ITO (ITAT Kolkata)

Amrabathi Investra (P) Ltd. Vs ITO (ITAT Kolkata) In the assessee`s case in the reasons supplied to the assesseee, as noted in above para, there is no whisper, what to speak of any allegation, that the assessee had failed to disclose fully and truly all material facts necessary for assessment and that because of this […]...

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Reassessment Proceeding completion without section 143(2) notice is invalid

Shri Gaurav Kumar Vs ITO (ITAT Jaipur)

The issue under consideration is whether AO can issue notice under section 148 for re-assessment without issuing notice u/s 143(2)?...

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Comprehensive Guide to Reopening of Assessments Under the Income Tax Act, 1961

Reopening of an assessment is one of the weapons in the armoury of the Income tax Department, it empowers assessing officer to reassess or recompute the income of an assessee which has escaped assessment.  Section 147 to 153 of the Income tax Act, 1961 [ Act] deals with the provisions of reassessment proceedings.  The said […]...

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Posted Under: Income Tax |

Section -147 Reopening of Assessment / Reassessment – Horrendous journey for assessee!

This blog covers an extensive analysis on the reassessment provisions in light of landmarks judgement which will help professional to face dispose the litigations hastily. I am not inserting bare sections here to increase the size of blog, it is written keeping in mind to provide less, solid and crux content about the matter. It includes ...

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Reopening of assessment merely on Internal Audit Objection Not Justified

Lionbridge Technologies P. Ltd. Vs ACIT (ITAT Mumbai)

Whether the re-opening of assessment u/s 147 initiated by AO is justified in law? Re-opening of assessment on basis of Internal Audit Objection Not Justified....

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No capital gain tax on land transfer to co-op society formed by flat purchasers

J. S. & M. F. Builders Vs A. K. Chauhan and others (Bombay High Court)

Whether the AO is correct in considering that the capital gain will arise in the year when the land is transferred to the co-operative society formed by the flat purchasers and not when flats are sold?...

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AO cannot disallow Sum credit in books under Section 68

Shri Hitesh Kumar Gupta Vs ITO (ITAT Jaipur)

The issue under consideration is whether the addition made by AO u/s 68 of Income tax Act, 1961 is justified in law?...

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Reassessment | Section 148 | Decoding Judicial Angle | Issues & controversies

Q1. Whether fresh tangible material is required for reopening the case u/s 148 even when the case is earlier processed u/s 143(1) simply and reopening is done within four years of the end of the assessment year? Ans.  There are more than two views. One set of view from Bombay, Gujarat high court is that […]...

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Posted Under: Income Tax |

Section 148- Revenue cannot travel beyond reasons recorded & same cannot be supplemented at the Later stage

Gateway Leaisng Pvt Ltd Vs ACIT (Bombay High Court)

Gateway Leaisng Pvt Ltd Vs ACIT (Bombay High Court) Section 148- Revenue cannot travel beyond reasons recorded & same cannot be supplemented at the Later stage. Reasons which are recorded by the Assessing Officer for re-opening an assessment are the only reasons which can be considered when the formation of the belief is impugned; suc...

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Section 148 notice unsustainable as very basis of notice was invalid

Aberdeen Asia Pacific Including Japan Equity Fund Vs DCIT (Bombay High Court)

High Court states that if the Assessing Officer had no jurisdiction to initiate re- assessment proceeding, the mere fact that subsequent orders have been passed would not render the challenge to jurisdiction infructuous. If the very basis for re- opening assessment does not survive, orders on such re-opening would not survive too. Hence,...

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Powers of AO to reopen assessment u/s 148 are not un-abundant or luxuriant-Vol.-1

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 re-compute income, turnover etc. which has escaped assessment. Sec. 147 and Section 148 of the Act contain the per-requisite conditions to be fulfilled for invoking the jurisdiction to reopen the assessment. ...

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Posted Under: Income Tax |

Accommodation entry Business- Entire deposits cannot be assessed as unexplained cash credits.

PCIT Vs Alag Securities Pvt. Ltd. (Bombay High Court)

In the present case, Assessee is engaged in the business of providing accommodation entries to entry seekers. During the assessement proceedings AO held that the identity of the parties involved in the transactions were not furnished as well as genuineness of the transactions relating to total cash deposits were not satisfactorily explai...

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Due date for filing Revise TDS Return?

On filling income tax return, one of the crucial part is to fill the TDS claim during the relevant financial year which should be match with TDS Credit reflects in Form 26AS. On non-matching of TDS claimed with TDS credit reflected in Form 26AS, demand will be raised by IT department on processing of return under section 143(1) of Income ...

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Assessee can claim Section 54F deduction during Section 147 Proceedings

Pyare Lal Saini Vs ITO (ITAT Jaipur)

Whether AO is correct in rejecting the claim of assessee regarding the deduction u/s 54F, which was made first time during Reassessment Proceedings?...

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Section 68: Sales declared as Income in books cannot be treated as cash credit

Bhagwant Merchants Private Limited Vs ITO (ITAT Kolkata)

ITAT states that the assessee has disclosed the sale of shares in its books of account. Once the sale is declared as income by the assessee, the question of treating the same amount as a cash credit u/s 68 of the Act results in double addition. Thus, the addition is also bad on merits. Hence, the appeal of the assessee is allowed....

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Non-rejection of explanation in Assessment Order amounts to acceptance: SC

ACIT Vs Marico Ltd. (Supreme court)

The non-rejection of the explanation in the Assessment Order would amount to the Assessing Officer accepting the view of the assessee, thus taking a view/forming an opinion....

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Section 55: AO cannot reject valuation report without proving lesser valuation

DCIT Vs Ajanta Tubes Ltd. (ITAT Delhi)

DCIT Vs Ajanta Tubes Ltd. (ITAT Delhi) The issue under consideration is whether the A.O. is correct in rejecting the valuation report obtained by the assessee? In the present case, assessee had sold its land and building. Assessee had taken the cost of acquisition for land as per valuation report as at 1-4-1981 as against […]...

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Reassessment merely on Investigation officer report is unsustainable

Ashapura Minichem Limited Vs DCIT (ITAT Mumbai)

Ashapura Minichem Limited Vs DCIT (ITAT Mumbai) The issue under consideration is whether the re-opening of assessment u/s 147 is justified in law? The assessee before us is a listed public limited company engaged in the business of mining bauxite and selling the same in domestic as well as international market. In the present case [&helli...

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Dealing with reassessment under Income Tax Act, 1961

As per section 2(8) of the Income Tax Act, 1961, the term assessment includes re-assessment. Meaning of income escaping assessment: As per the provisions contained in section 147 of the Income Tax Act, 1961, if the Assessing Officer has reason to believe that any income chargeable to tax has escaped assessment for any assessment year, [&h...

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Posted Under: Income Tax |

Mere bald assertions by AO in reasons for reopening would confer valid jurisdiction to AO to Reopen?

Each aspect of Section 147 has been a subject matter of careful scrutiny by the court of law. One such main issue is with respect to the validity of the assumption of jurisdiction by the AO to reopen the assessment beyond four years, merely by making a Bald Assertion in the reasons as to the failure of the Assessee to disclose fully and t...

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Posted Under: Income Tax |

MSBTE is ‘State’ under Indian Constitution & Exempt from Income Tax

Maharashtra State Board of Technical Education Vs ITO (ITAT Mumbai)

The issue under consideration is whether CIT(A) is correct in holding that the appellant is not a state under Article 289 of the Constitution of India and therefore, liable to tax under the Income Tax Act?...

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Reopening of assessment to deny Section 80IB is without jurisdiction if no failure of Assessee to disclose information during Original Assessment

International Flavours and Fragrances India Private Limited Vs DCIT (Madras High Court)

International Flavours and Fragrances India Private Limited Vs DCIT (Madras High Court) The issue under consideration is whether the notice issued u/s 147 for re-opening the assessment is justified in law? Petitioner is engaged in manufacture of flavour essences, mixed seasoning powders (dry mix) and formulated perfumery compounds etc. Th...

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Re-Assessment justified against former Cricketer Srikanth

Shri K. Srikanth Vs ACIT (ITAT Chennai)

Reassessment was justified by the income tax department against former Indian Cricket Team Captain Krishnamachari Srikanth and non compete fee of Rs. 7.50 crores was exempt from tax being capital receipt;...

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On mere change of opinion, the concluded assessment cannot be reopened

Akshaya Souharda Credit Cooperative Limited Vs ITO (ITAT Bangalore)

Akshaya Souharda Credit Cooperative Limited Vs ITO (ITAT Bangalore) The issue under consideration is whether A.O. is correct in re-opening of assessment based on the same material on which he relied at the time of assessment u/s 143(3)? The assessee is a co-operative engaged in providing credit facilities to its members. The assessee file...

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No section 147 notice based on material already presented during section 143(3) assessment

Audhut Timblo Vs ACIT (Bombay to Goa High Court)

The issue under consideration is whether A.O. is correct in issuing Notice under section 147 for re-opening of assessment irrespective of the fact that the material on which he relied is already present in front of him at the time of assessment u/s 143(3)?...

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No reassessment after 4 years in case there was no disclosure failure on the part of assessee

PCIT Vs SKI Retail Capital Ltd. (Madras High Court)

AO was not justified in reopening of assessment after four years as on an independent application of mind and on thorough consideration of material aspects and legal position,there was no failure on the part of assessee....

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Assessment without Section 143(2) notice is not justified in law 

ITO Vs Satish Singh Bhati (ITAT Delhi)

The issue under consideration is whether CIT(A) is correct by annulling the assessment order on the ground that no notice under section 143(2) was issued before the completion of assessment?...

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Assessments under Income-Tax Act, 1961

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 up by the taxpayer, the next step is the processing of the return of income by the Income Tax Department. ...

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Posted Under: Income Tax | ,

HC explains Law on Section 148 Reopening for the 2nd time

T. Krishnamurthy Vs ITO (Madras High Court)

T. Krishnamurthy Vs ITO (Madras High Court) This is a case where details of investment in shares and immovable property were not originally disclosed by the petitioner at the time of filing of the original returns under section 139 of the Income-tax Act, 1961 for the respective assessment years. Therefore, two notices under section 148 [&...

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Reopening of assessment without bringing any fresh material on record is not justified

Chordia Buildcon Pvt. Ltd. Vs DCIT (ITAT Jaipur)

Chordia Buildcon Pvt. Ltd. Vs DCIT (ITAT Jaipur) The issue under consideration is whether the action taken by the AO u/s 147 r.w.s 148 is justified in law? The case of assessee was originally selected for scrutiny and a detailed questionnarie was issued alongwith notice u/s 142(1). The AO asked specific queries with regard to […]...

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Revisionary proceedings u/s 263 against reassessment proceedings are confined to reasons recorded u/s 148

Jindal Steel & Power Ltd. Vs PCIT (ITAT Delhi)

The reasons recorded for reopening of the assessee are very foundation of the reassessment proceedings. However, same analogy can also be applied in ongoing 'Limited Scrutiny' in which the AO has been directed to examine the only specified limited issues and this stand of the assessee can ignite the litigation....

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Passing ex-parte order without discussing merit of case is not justified in law

Bimla Devi D/o. Shri Phool Chand Vs ITO (ITAT Delhi)

Bimla Devi D/o. Shri Phool Chand Vs ITO (ITAT Delhi) The issue under consideration is whether the ex-parte order passed by CIT(A) without discussing merit of the case is justified in law? ITAT studied the matter and state that it is pertinent to note that the CIT(A) has passed ex-parte order and dismissed the appeal […]...

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Reassessment u/s 147 without any tangible material to support escapement of income not justified

SPR & RG constructions Pvt. Ltd. Vs ACIT (ITAT Chennai)

SPR & RG constructions Pvt. Ltd. Vs ACIT (ITAT Chennai) The issue under consideration is whether the reasons for reopening of assessment u/s 147 are justified? The reasons recorded for reopening are on the basis of the audited accounts of the assessee i.e., specifically perusal of Schedule 30 of the profit and loss account and [&helli...

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A.O. bound to dispose off objections filed by assessee by passing a speaking order

Redington India Ltd. Vs ACIT (Madras High Court)

The issue under consideration is whether the Assessing officer is correct in rejecting the objections filed by the petitioner against the reasons for reopening the assessment without passing speaking order?...

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No Section 147 Assessment in absence of reasons for escapement of income

Kailash Kanhaiyalal Gidwani Vs ACIT (ITAT Pune)

Existence of reasons for escapement of income are sine qua non to embark upon the assessment or reassessment u/s 147 of the Act. Change or no change of opinion, as argued by the ld. DR, are the factors to be considered after fulfilling the jurisdictional condition of there being an escapement of income, in the absence of which no assessme...

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Section 147- Reasons to Believe- Believe it or not!

To understand the phrase 'reasons to believe' it is fair to discuss provisions of section 147 of Income Tax Act, 1961.This article aims at highlighting the importance of 'reasons to believe'phrase on invocation of provisions of section 148/147 Income Tax Act, 1961....

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Posted Under: Income Tax |

Section 148: Reason for issue of notice can be claimed before Return Filing

Assessee Can Claim Reasons For Issue Of Notice under section 148 Before Filing Of Return under section 148 of Income Tax Act, 1961. We all are aware that notice under section 148 for reassessment can be issued by income tax department upto sixteen years from the end of the relevant assessment years, if there is […]...

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Posted Under: Income Tax |

A New Light on Reassessment Under Income Tax Act, 1961

New Delhi Television Ltd. Vs DCIT (Supreme Court of India)

In our view this is not a fair or proper procedure. If not in the first notice, at least at the time of furnishing the reasons the assessee should have been informed that the revenue relied upon the second proviso. The assessee must be put to notice of all the provisions on which the revenue relies upon....

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Section 147 reopening of Assessment invalid if beyond prescribed time limit

Jivraj Tea Ltd. Vs ACIT (Gujarat High Court)

It was submitted that therefore, the first proviso to section 148 of the Act would be attracted and the assumption of jurisdiction on the part of the Assessing Officer under section 147 of the Act is invalid....

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Mere Outstanding loan in books cannot be reason for reopening of assessment

Vanita Sanjeev Anad Vs ITO (Delhi High Court)

In the given case, the Petitioner who is a regular income tax assessee filed her return of income for the AY 2011-12. The Assessing Officer issued under section 133(6) of the Act, called for certain information from the assessee....

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Principles of law governing re-assessment under Income Tax

Principles of law governing re-assessment under Income Tax Law (Section 147 and 148) (i) The Court should be guided by the reasons recorded for the reassessment and not by the reasons or explanation given by the Assessing Officer at a later stage in respect of the notice of reassessment. To put it in other words, […]...

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Posted Under: Income Tax |

Reopening of Assessment after 4 years only if some new Tangible material

Arun Munshaw HUF Vs ITO (Gujarat High Court)

Arun Munshaw HUF Vs ITO (Gujarat High Court) Thus, having regard to the position of law and the materials emerging from the record of the case, it cannot be said that there was no full and true disclosure at the end of the assessee of the material facts. In such circumstances, it could be said […]...

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Reopening Based on change of opinion and in absence of any adverse tangible material was invalid

DCIT Vs Surat Urban Development Authority (SUDA) (ITAT Ahmedabad)

In such cases, assessments can be reopened only if an income assessable to tax has escaped on account of failure of the assessee to disclose all the material facts fully and truly. In other words, the AO has to demonstrate that income of the assessee has escaped assessment on account of its failure to disclose all material facts of the as...

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Section 271(1)(c) Penalty leviable as revised return filed only after issuance of notice u/s 143(2)/142(1)

Bhavesh Pravinchandra Sheth Vs ACIT (ITAT Mumbai)

Since assessee had no intention to make a full and true disclosure of its income as it would not have filed a revised return of income showing higher income before issuance of the notice 143(2)/142(1) by AO, therefore, AO  rightly held that assessee had deliberately and consciously failed to furnish full and true particulars of income an...

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Section 148 Notice issued in the name of dead person was invaild

Urmilaben Anirudhhasinhji Jadeja Vs ITO (Gujarat High Court)

Notice under section 148 issued to a dead person could not be continued against the legal representatives and moreover, section 292B also could not be resorted to....

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Assessment proceedings cannot be conducted against HUF after partition

Shri S. Krishnappa (HUF) Vs DCIT (ITAT Bangalore)

The issue raised by the assessee that the HUF was not in existence when the assessment proceedings have been conducted and the Assessment Order has been passed on HUF and therefore, the entire proceedings are rendered null and void and it should be held that the Assessment Order is bad in law on the facts and circumstances of the present ...

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Section 148 notice can be challenged before HC only after following procedure

S.M. Sarveswaran (HUF) Vs ITO (Madras High Court)

The writ petition is not maintainable challenging the notice issued under Section 148 of the Income Tax Act. The Hon'ble Supreme court in GKN Drive Shafts' case reported in 259 ITR 19 (SC), clarified the procedure to be followed, when notice is issued under Section 148. Therefore, the petitioner has to follow such procedure including by a...

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Penalty cannot be imposed for mere Section 12A registration cancellation

Guru Nanak Public School Vs ACIT (ITAT Chandigarh)

TAT see no reason to uphold the levy of penalty in the present case U/s 271(1)(c) of the Act, since the basis for levy of penalty, being cancellation of registration granted to the assessee U/s 12A of the Act and as a consequence treating its surplus and corpus donation as not exempt but taxable under the Act, has been quashed by the ITAT...

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Reopening invalid if reasons for same not speaks of escapement of income

DCIT Vs. Aryan Mining & Trading Corporation Ltd. (ITAT Kolkata)

As there was no whisper about escapement of income, i.e., loss created by misusing client’s code modification, in the reasons for reopening conveyed to the assessee, therefore, no addition in respect of this could be made without making any addition in respect of the item shown to have escaped assessment in the reasons recorded....

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Assessment in the name of non-existent entity was void-ab-initio

Tata Chemicals Limited Vs JCIT (ITAT Mumbai)

Since the final assessment orders after amalgamation was passed in the name of non-existent company by the AO, the same was bad in law and therefore, set aside....

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No reassessment can be made solely on basis of statement recorded u/s 133A

A. Thangavel Nadar Stores Vs ITO (Madras High Court)

Reassessment was not justified wholly on the basis of a sworn statement recorded in the course of survey in the absence of any other tangible evidence available with the Assessing Officer as the materials collected and the statement obtained under Section 133A would not automatically bind upon the assessee....

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Mere Change of Opinion Cannot be Basis for Re-Opening of Assessment

DCIT Vs K.V. Mohana Rao and Co. Pvt. Ltd. (ITAT Visakhapatnam)

The issue under consideration is whether the re-opening of assessment u/s 147 is justified if the details on the basis of which case is re-opened was already available at the time of original assessment?...

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Non-disposal of objections to re-opening of assessment are not mere procedural lapse

Aarti Industries Ltd. Vs DCIT (ITAT Mumbai)

Non-disposal of objections challenging the validity of re-opening of assessment under section 147 is not a mere procedural lapse but affects the jurisdiction of AO to pass assessment order under section 143(3) read with section 147....

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Important CBDT instructions on Issue of Section 147 & Section 133(6) Notice

F. No. System/ITBA/AIMS/2019-20/1942 (28/02/2020)

Field formation should not carry out any enquiry u/s 133(6) or issue notice u/s 148 of the Act on the basis of the data presently available in either AIMS Module of the ITBA or the AIR information earlier shown in the ITD till further directions are issued....

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Reopening of assessment justified if notice issued in the name of surviving entity only

Experion Developers Pvt. Ltd. Vs ACIT (Delhi High Court)

Reopening of assessment was justified in case of EDPL as there were sufficient 'reasons to believe' that income had escaped assessment and the bar to reopening of proceedings after expiry of four years from the date of final assessment order, under the proviso, did not apply in assessee's case and there was no requirement to issue two sep...

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