Rectification of mistake remains limited to self-evident record errors, preventing merits review through miscellaneous applications and preserving fin...
Tender creditworthiness conditions may extend to de facto Promoter Directors, with post-participation challenges generally barred absent arbitrariness...
Corporate representation in PMLA summons proceedings permitted through an authorised signatory, subject to directors' continuing cooperation and atten...
Helicopter charter classification requires effective control analysis, while territorial performance, reasoned credit orders and wilful suppression de...
Specified fund definition expands PAN exemption eligibility for registered alternative investment funds and qualifying International Financial Service...
Tax exemption for specified legal-services authority income applies retrospectively, subject to non-commercial activity, unchanged income sources, and...
Reopening of assessment after four years is invalid as the recorded reasons do not mention any failure by the assessee to fully and truly disclose all material facts necessary for assessment. This is covered by the Supreme Court's decision in Canara Bank, where reopening beyond four years was held bad in law when the AO did not allege non-disclosure of material facts. Similar view in ACIT vs Virbac Animal Health India, dismissing the SLP against the High Court order that reopening after four years due to change of opinion was invalid. Regarding bogus purchases, the entire sales turnover is reflected in books, considered for profit determination, and subjected to taxation. VAT returns and output tax paid support the transactions. The assessee provided materials showing the goods purchased were sold to a company, which further sold them to contractors for a thermal plant project. The AO examined these purchase-sale details during original assessment but found no defects. Based on merits and legal aspects, the reassessment initiated after four years without pointing out non-disclosure of material facts, and the addition for bogus purchases, are unjustified and invalid. Decided in favor of the assessee.
Reopening of assessment after four years is invalid as the recorded reasons do not mention any failure by the assessee to fully and truly disclose all material facts necessary for assessment. This is covered by the Supreme Court's decision in Canara Bank, where reopening beyond four years was held bad in law when the AO did not allege non-disclosure of material facts. Similar view in ACIT vs Virbac Animal Health India, dismissing the SLP against the High Court order that reopening after four years due to change of opinion was invalid. Regarding bogus purchases, the entire sales turnover is reflected in books, considered for profit determination, and subjected to taxation. VAT returns and output tax paid support the transactions. The assessee provided materials showing the goods purchased were sold to a company, which further sold them to contractors for a thermal plant project. The AO examined these purchase-sale details during original assessment but found no defects. Based on merits and legal aspects, the reassessment initiated after four years without pointing out non-disclosure of material facts, and the addition for bogus purchases, are unjustified and invalid. Decided in favor of the assessee.
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