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 HC held that reopening under Section 147 is unsustainable where the assessee had divulged full and true primary facts in the return; the impugned reassessment lacked statutory foundation and therefore contravened Section 147. A mere change of opinion by the AO cannot constitute a valid reason to reopen assessment. Issuance of a second notice while an earlier notice subsisted was declared invalid, rendering consequent proceedings a nullity. In view of these conclusions the writ petition was allowed and the reassessment proceedings and consequential orders were quashed.
The HC held that reopening under Section 147 is unsustainable where the assessee had divulged full and true primary facts in the return; the impugned reassessment lacked statutory foundation and therefore contravened Section 147. A mere change of opinion by the AO cannot constitute a valid reason to reopen assessment. Issuance of a second notice while an earlier notice subsisted was declared invalid, rendering consequent proceedings a nullity. In view of these conclusions the writ petition was allowed and the reassessment proceedings and consequential orders were quashed.
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TaxTMI 
TaxTMI 
of 4915 
