Books of account - Reopening of an assessment

[Dharmender Batra]

Is there any rule/case law that unless there is flaw in books of accounts, the case cannot be reopened or reassessed. If it is there please give its reference.

[Surender Gupta]

You may read section 145(3) with section 144. As per section 145(3), (3) Where the Assessing Officer is not satisfied about the correctness or completeness of the accounts of the assessee, or where the method of accounting provided in sub-section (1) or accounting standards as notified under sub-section (2), have not been regularly followed by the assessee, the Assessing Officer may make an assessment in the manner provided in section 144.

AI Summary

Reopening assessments based on unsatisfactory accounts permitted under section 145(3), enabling assessment under section 144. Reopening of assessment is permissible where the Assessing Officer is not satisfied as to the correctness or completeness of the books of account, or where the method of accounting or notified accounting standards have not been regularly followed, and may make an assessment in the manner provided for cases of unsatisfactory accounts.