Pre-amendment reassessment limitation bars late notices under the preserved regime, invalidating consequential reassessment for affected earlier asses...
Cash-sales explanations for bank deposits require documentary reconciliation; reassessment notice survived where effective response time was available...
Functional comparability in transfer pricing prevents ad hoc arm's length adjustments where functions, assets, risks and reliable comparables are unes...
Contingency expenses, exempt-income disallowance, and royalty benchmarking: unsupported adjustments were deleted under consistent accounting and trans...
The HC upheld the validity of the reopening of assessment under Section 147, holding that the notice issued under Section 148 was not barred by limitation. The Court clarified that, pursuant to Section 149's scheme, the period during which the assessee was given extended time via the show-cause notice under Section 148A(b), as well as any stay of proceedings under Section 148, must be excluded from the limitation period. Consequently, the notice issued on 25.09.2024, though beyond three years from the end of the AY 2020-21, was within the extended limitation period after excluding the interval from 01.04.2021 to 20.03.2022. The sanction granted by the Principal Commissioner under Section 151(i) was held lawful. Reliance on extant precedents affirmed that limitation provisions apply equally to the Department, thereby validating the reopening and dismissing the assessee's challenge.
The HC upheld the validity of the reopening of assessment under Section 147, holding that the notice issued under Section 148 was not barred by limitation. The Court clarified that, pursuant to Section 149's scheme, the period during which the assessee was given extended time via the show-cause notice under Section 148A(b), as well as any stay of proceedings under Section 148, must be excluded from the limitation period. Consequently, the notice issued on 25.09.2024, though beyond three years from the end of the AY 2020-21, was within the extended limitation period after excluding the interval from 01.04.2021 to 20.03.2022. The sanction granted by the Principal Commissioner under Section 151(i) was held lawful. Reliance on extant precedents affirmed that limitation provisions apply equally to the Department, thereby validating the reopening and dismissing the assessee's challenge.
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