Jurisdictional sanction requirements bar reassessment when approval comes from an authority lacking statutory competence under the applicable framewor...
Recorded sales receipts cannot be reassessed as unexplained cash credits, eliminating the basis for consequential alleged commission expenditure addit...
Sufficient cause for delayed income-tax appeals requires bona fide diligence; unsubstantiated counsel illness and assessee inaction defeat condonation...
TNMM Segmentation Limits Transfer-Pricing Adjustments to Associated-Enterprise Transactions and Requires Turnover-Based Comparable Selection for IT Se...
The High Court held that the Assessing Officer could not reopen the assessment u/s 147 as the basic precondition of having "reason to believe" that income had escaped assessment was not satisfied. Despite information from the search action u/s 132, when the petitioner was assessed u/s 115JB and had paid tax at 7.5%, adding the alleged escaped income would result in an amount less than the tax already paid. Therefore, no income had actually escaped assessment. Consequently, the impugned notices u/s 148 and subsequent proceedings were unsustainable, and the decision was in favor of the assessee.
The High Court held that the Assessing Officer could not reopen the assessment u/s 147 as the basic precondition of having "reason to believe" that income had escaped assessment was not satisfied. Despite information from the search action u/s 132, when the petitioner was assessed u/s 115JB and had paid tax at 7.5%, adding the alleged escaped income would result in an amount less than the tax already paid. Therefore, no income had actually escaped assessment. Consequently, the impugned notices u/s 148 and subsequent proceedings were unsustainable, and the decision was in favor of the assessee.
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TaxTMI 
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