Online bond platforms may offer overseas-regulated products and tax-specific bonds subject to disclosures, compliance safeguards and revised complianc...
Corporate guarantee valuation permits actual ascertainable commission while barring retroactive application and extended-period penalties for bona fid...
Proper-officer jurisdiction under UPGST penalty provisions upheld; participation on merits prevents bypassing the statutory appellate remedy through w...
Transitioned CENVAT credit may validly satisfy mandatory pre-deposit requirements for legacy service tax appeals through Electronic Credit Ledger debi...
Building-plan sanction charges require statutory authority; unauthorised fees and GST were quashed, while labour cess must follow prescribed collectio...
Pure-agent exclusion fails where hotel booking facilitators receive third-party services themselves, making entire customer consideration taxable as r...
The ITAT held that the Assessing Officer (AO) had incorrectly assumed facts while reopening the assessment u/s 147, leading to an erroneous belief of income escaping assessment. The assessee had already undergone scrutiny assessment u/s 143(3), disclosed share application receipts, and provided relevant details accepted by the AO. Despite adverse information from the CIT(A), the AO failed to conduct a preliminary inquiry and relied on incorrect assumptions. Mere adverse information triggers 'reason to suspect' but not the 'reason to believe' required for reopening assessment. The AO did not record proper reasons after examining material. Consequently, the notice issued u/s 148 was vitiated, held bad in law, and quashed by the ITAT, allowing the assessee's appeal.
The ITAT held that the Assessing Officer (AO) had incorrectly assumed facts while reopening the assessment u/s 147, leading to an erroneous belief of income escaping assessment. The assessee had already undergone scrutiny assessment u/s 143(3), disclosed share application receipts, and provided relevant details accepted by the AO. Despite adverse information from the CIT(A), the AO failed to conduct a preliminary inquiry and relied on incorrect assumptions. Mere adverse information triggers 'reason to suspect' but not the 'reason to believe' required for reopening assessment. The AO did not record proper reasons after examining material. Consequently, the notice issued u/s 148 was vitiated, held bad in law, and quashed by the ITAT, allowing the assessee's appeal.
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