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...
Assumption of jurisdiction u/s 153A was challenged due to unexplained credit u/s 68. Share capital, being a liability, cannot be treated as an asset to invoke jurisdiction. AO could go beyond 6 years only if certain income represented as an asset escaped assessment, which was missing here. CIT(A) rightly held share capital is not an asset since it represents assessee's liability. AO's attempt to treat share capital as an asset was erroneous, rendering jurisdiction untenable. Goldstone Cements Ltd. case supported this view, ruling AO cannot assume jurisdiction for liabilities. When AO fails to make addition for undisclosed asset, it implies lack of jurisdictional fact initially, wrongly assuming jurisdiction u/s 153A. Decided against revenue.
Assumption of jurisdiction u/s 153A was challenged due to unexplained credit u/s 68. Share capital, being a liability, cannot be treated as an asset to invoke jurisdiction. AO could go beyond 6 years only if certain income represented as an asset escaped assessment, which was missing here. CIT(A) rightly held share capital is not an asset since it represents assessee's liability. AO's attempt to treat share capital as an asset was erroneous, rendering jurisdiction untenable. Goldstone Cements Ltd. case supported this view, ruling AO cannot assume jurisdiction for liabilities. When AO fails to make addition for undisclosed asset, it implies lack of jurisdictional fact initially, wrongly assuming jurisdiction u/s 153A. Decided against revenue.
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TaxTMI 
TaxTMI 
of 4916 
