Reassessment under s.148A held valid; s.69 additions totaling Rs.7,00,000 deleted after acceptable contemporaneous explanations for property investmen...
Adjudication set aside; Rule 9 valuation based on internet engineer report quashed for Rule 3(4) non-compliance; Section 138B cross-examination requir...
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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