Bogus donation receipts justified commission income assessment and defeated political-party tax exemption for inaccurate accounts and reporting failur...
Pure reimbursement without income element escapes tax withholding, while delayed withholding and unsupported provisions face deferred or renewed scrut...
Public benefit requirement defeats charitable registration where residents' association services are reciprocal, member-only facilities governed by mu...
Exempt-income expenditure disallowance is confined to investments that actually generated exempt income, while supported business expenses remain dedu...
Objective characteristics and principal use govern mining-tyre classification, while fresh advance ruling applications may rely on additional technica...
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Formation of belief by the Assessing Officer that income has escaped assessment is the crux of the reopening provision. The reasons recorded must be based on tangible material, evident from the reading of the reasons, constituting the mandatory requirement of Section 147. Assessments cannot be reopened merely on suspicion; the Assessing Officer must have "reason to believe" that income has escaped assessment, different from merely having a reason to suspect. In this case, there is no "close nexus" or "live link" between tangible material and the reason to believe income has escaped assessment. Information received from the Investigating Unit cannot be the sole basis; the Assessing Officer must take further steps, make inquiries, and gather material indicating income has escaped assessment before forming the belief. The Assessing Officer has not acquired any material to form such belief, lacking even a line of reason justifying the belief's formation. Consequently, the reopening does not satisfy the legal requirements of Sections 147 & 148. Thus, the reassessment proceedings are set aside, decided in favor of the assessee.
Formation of belief by the Assessing Officer that income has escaped assessment is the crux of the reopening provision. The reasons recorded must be based on tangible material, evident from the reading of the reasons, constituting the mandatory requirement of Section 147. Assessments cannot be reopened merely on suspicion; the Assessing Officer must have "reason to believe" that income has escaped assessment, different from merely having a reason to suspect. In this case, there is no "close nexus" or "live link" between tangible material and the reason to believe income has escaped assessment. Information received from the Investigating Unit cannot be the sole basis; the Assessing Officer must take further steps, make inquiries, and gather material indicating income has escaped assessment before forming the belief. The Assessing Officer has not acquired any material to form such belief, lacking even a line of reason justifying the belief's formation. Consequently, the reopening does not satisfy the legal requirements of Sections 147 & 148. Thus, the reassessment proceedings are set aside, decided in favor of the assessee.
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