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...
Section 147/148 proceedings can only be initiated based on the original reasons recorded for forming the opinion of escapement of income. The Assessing Officer cannot deviate, supplement or supplant those reasons subsequently. Explanation 3 to Section 147 does not empower the Assessing Officer to improve upon or change the original reasons. The validity of reassessment must be judged from the standpoint of the initial reasons recorded. Once reassessment is validly initiated, Explanation 3 allows the Assessing Officer to consider other issues during reassessment proceedings, subject to the requirement of valid initiation. The High Court quashed the impugned notices and orders, deciding in favor of the assessee.
Section 147/148 proceedings can only be initiated based on the original reasons recorded for forming the opinion of escapement of income. The Assessing Officer cannot deviate, supplement or supplant those reasons subsequently. Explanation 3 to Section 147 does not empower the Assessing Officer to improve upon or change the original reasons. The validity of reassessment must be judged from the standpoint of the initial reasons recorded. Once reassessment is validly initiated, Explanation 3 allows the Assessing Officer to consider other issues during reassessment proceedings, subject to the requirement of valid initiation. The High Court quashed the impugned notices and orders, deciding in favor of the assessee.
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TaxTMI 
TaxTMI 
of 4915 
