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 of assessment must be confined to the income that formed the assessing officer's belief; other income noticed during reassessment may be assessed only if the originally alleged escaped income remains assessed as escaped. Applying the jurisdictional precedent, where the AO after issuing a notice accepts the returned income on the issue that prompted reopening, the AO cannot independently compute deemed income based on book profit or levy MAT in that reassessment without issuing a fresh notice. Consequently the MAT computation in the reassessment was quashed as beyond the scope of proceedings.
Reopening of assessment must be confined to the income that formed the assessing officer's belief; other income noticed during reassessment may be assessed only if the originally alleged escaped income remains assessed as escaped. Applying the jurisdictional precedent, where the AO after issuing a notice accepts the returned income on the issue that prompted reopening, the AO cannot independently compute deemed income based on book profit or levy MAT in that reassessment without issuing a fresh notice. Consequently the MAT computation in the reassessment was quashed as beyond the scope of proceedings.
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