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 held that the reassessment proceedings were void ab initio due to complete absence of a mandatory notice under s. 143(2) of the Act. The assessee had filed a belated return seven days before completion of reassessment, and the AO expressly relied on this return by starting the computation from the returned income and thereafter making additions for unexplained gifts. Once the AO took cognizance of the return, issuance of notice under s. 143(2) became mandatory. ITAT further held that s. 292BB cannot cure the total absence of such notice, as it only validates defects in service. Consequently, the reassessment and resultant additions were quashed and the assessee's appeal allowed.
ITAT held that the reassessment proceedings were void ab initio due to complete absence of a mandatory notice under s. 143(2) of the Act. The assessee had filed a belated return seven days before completion of reassessment, and the AO expressly relied on this return by starting the computation from the returned income and thereafter making additions for unexplained gifts. Once the AO took cognizance of the return, issuance of notice under s. 143(2) became mandatory. ITAT further held that s. 292BB cannot cure the total absence of such notice, as it only validates defects in service. Consequently, the reassessment and resultant additions were quashed and the assessee's appeal allowed.
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