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 ITAT upheld the reopening of assessment under section 147 as valid, finding the reasons recorded for issuing the notice within the four-year period to be justified. The addition under section 69A relating to a cash deposit of Rs. 8,00,000 during the demonetization period was deleted, as the assessee satisfactorily explained the source as cash sales supported by consistent business records. However, the Tribunal found the AO's addition on estimated profits from alleged suppressed purchases erroneous, noting the correct purchase amount was already accounted for. Consequently, the addition of Rs. 13,07,642 was deleted, and the assessee's ground challenging this addition was allowed.
The ITAT upheld the reopening of assessment under section 147 as valid, finding the reasons recorded for issuing the notice within the four-year period to be justified. The addition under section 69A relating to a cash deposit of Rs. 8,00,000 during the demonetization period was deleted, as the assessee satisfactorily explained the source as cash sales supported by consistent business records. However, the Tribunal found the AO's addition on estimated profits from alleged suppressed purchases erroneous, noting the correct purchase amount was already accounted for. Consequently, the addition of Rs. 13,07,642 was deleted, and the assessee's ground challenging this addition was allowed.
Note: It is a system-generated summary and is for quick reference only.
TaxTMI 
TaxTMI 
of 4915 
