Reopening of assessment cannot rest solely on an audit party's opinion; reassessment under Section 147/148 is impermissible and power of revision shou...
Tested party selection: functional analysis identified the least complex unit as the appropriate tested party, altering the transfer pricing adjustmen...
Reopening under s.147 was upheld as the AO recorded that the assessee had failed to fully and truly disclose material facts necessary for assessment, and the matters forming the basis of reassessment had not been examined in the earlier s.143(3) proceedings; hence, the reassessment was not a mere change of opinion and the jurisdictional condition of "reasons to believe" was satisfied, resulting in rejection of the challenge to reopening. The CIT(A)'s remand for de novo assessment was sustained because the assessment had been framed without reasons due to alleged non-compliance with notices, and the assessee demonstrated illness as cause; the CIT(A) validly exercised powers under s.251(1)(a), leading to dismissal of the appeal ground. - ITAT
Reopening under s.147 was upheld as the AO recorded that the assessee had failed to fully and truly disclose material facts necessary for assessment, and the matters forming the basis of reassessment had not been examined in the earlier s.143(3) proceedings; hence, the reassessment was not a mere change of opinion and the jurisdictional condition of "reasons to believe" was satisfied, resulting in rejection of the challenge to reopening. The CIT(A)'s remand for de novo assessment was sustained because the assessment had been framed without reasons due to alleged non-compliance with notices, and the assessee demonstrated illness as cause; the CIT(A) validly exercised powers under s.251(1)(a), leading to dismissal of the appeal ground. - ITAT
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