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 High Court held that the jurisdictional facts necessary to invoke Section 147 for reassessment were absent. The reassessment was initiated after the four-year period, but there was no failure on the part of the assessee to fully and truly disclose material facts during the original assessment. The facts relied upon for reassessment were fully disclosed during the scrutiny proceedings in the original assessment. The Revenue is seeking to express a different opinion based on the same disclosed facts, which is impermissible. The sanction mechanism u/s 151 for reassessment was rendered arbitrary due to non-application of mind and mechanical approval without considering the ingredients of Section 147. The court emphasized the imperative requirement of compliance with Sections 147 and 148 and decided in favor of the assessee.
The High Court held that the jurisdictional facts necessary to invoke Section 147 for reassessment were absent. The reassessment was initiated after the four-year period, but there was no failure on the part of the assessee to fully and truly disclose material facts during the original assessment. The facts relied upon for reassessment were fully disclosed during the scrutiny proceedings in the original assessment. The Revenue is seeking to express a different opinion based on the same disclosed facts, which is impermissible. The sanction mechanism u/s 151 for reassessment was rendered arbitrary due to non-application of mind and mechanical approval without considering the ingredients of Section 147. The court emphasized the imperative requirement of compliance with Sections 147 and 148 and decided in favor of the assessee.
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