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Negative liens over operating assets can constitute international transactions requiring arm's-length pricing reflecting restricted borrowing and expa...
Cross-examination rights in Customs Broker revocation inquiries require witness examination; procedural denial may be cured through fresh adjudication...
The High Court held that the reassessment proceedings initiated by the revenue authorities were invalid as there was no new tangible material or information suggesting escapement of income. The reopening was based solely on the material already available on record, which amounts to a mere change of opinion, impermissible under law. The revenue authorities had already considered the allowability of deductions u/ss 54B and 54F during the original assessment proceedings. Reopening the assessment on the ground that the Assessing Officer did not properly inquire or adopted a casual approach is not a valid reason to believe. The issuance of a notice u/s 148 must have a direct nexus with new information or tangible material that came to the knowledge of the authorities, which was lacking in this case. The court decided in favor of the assessee.
The High Court held that the reassessment proceedings initiated by the revenue authorities were invalid as there was no new tangible material or information suggesting escapement of income. The reopening was based solely on the material already available on record, which amounts to a mere change of opinion, impermissible under law. The revenue authorities had already considered the allowability of deductions u/ss 54B and 54F during the original assessment proceedings. Reopening the assessment on the ground that the Assessing Officer did not properly inquire or adopted a casual approach is not a valid reason to believe. The issuance of a notice u/s 148 must have a direct nexus with new information or tangible material that came to the knowledge of the authorities, which was lacking in this case. The court decided in favor of the assessee.
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