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...
ITAT allowed the appeal and set aside the suo motu rectification order passed under s.154 by CPC/AO, holding it void for want of a reasonable opportunity of hearing to the assessee as mandated by s.154(3) and the principles of natural justice. The Tribunal noted the return had not been processed under s.143(1), and the revenue produced no record of any opportunity afforded. Consequently the rectification, which had the effect of enhancing assessment, was quashed for non-compliance with statutory procedure and audi alteram partem requirements, and remitted for fresh action conforming to s.154(3) and fair hearing standards.
ITAT allowed the appeal and set aside the suo motu rectification order passed under s.154 by CPC/AO, holding it void for want of a reasonable opportunity of hearing to the assessee as mandated by s.154(3) and the principles of natural justice. The Tribunal noted the return had not been processed under s.143(1), and the revenue produced no record of any opportunity afforded. Consequently the rectification, which had the effect of enhancing assessment, was quashed for non-compliance with statutory procedure and audi alteram partem requirements, and remitted for fresh action conforming to s.154(3) and fair hearing standards.
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TaxTMI 
TaxTMI 
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