Opportunity to furnish unsecured-loan confirmations is required before reassessment initiation; proceedings require fresh consideration after taxpayer...
Under-reporting on a first reassessment return attracts penalty, while enhanced misreporting penalty requires proof of a statutory misreporting catego...
The assessee claimed excess deduction u/s 36(1)(viia) for provision for bad and doubtful debts, leading to escapement of income. The Assessing Officer rightly formed the belief of income escapement based on assessment records obtained from the Income Tax Officer, revealing the excess deduction claim. It was not a case of change of opinion, as the statutory provisions u/s 36(1)(viia) limit the deduction to 7.5% of total income, leaving no room for differing opinions. The tangible material justified reopening the assessment, and the assessee's reliance on the Delta Airlines case was misplaced. The appeal was dismissed, as it was a clear case of income escapement due to excess deduction claimed, contrary to statutory provisions.
The assessee claimed excess deduction u/s 36(1)(viia) for provision for bad and doubtful debts, leading to escapement of income. The Assessing Officer rightly formed the belief of income escapement based on assessment records obtained from the Income Tax Officer, revealing the excess deduction claim. It was not a case of change of opinion, as the statutory provisions u/s 36(1)(viia) limit the deduction to 7.5% of total income, leaving no room for differing opinions. The tangible material justified reopening the assessment, and the assessee's reliance on the Delta Airlines case was misplaced. The appeal was dismissed, as it was a clear case of income escapement due to excess deduction claimed, contrary to statutory provisions.
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TaxTMI 
TaxTMI 
of 4915 
