Extended limitation requires willful misstatement or suppression with intent to evade; mere misclassification does not sustain confiscation or penalty...
Reopening of assessment under sections 147/148 was quashed where the recorded reasons and administrative approval proceeded on the erroneous factual premise that no return was filed, demonstrating a failure of application of mind and vitiating jurisdiction. On the merits, the tribunal reaffirmed that for additions under section 68 the assessee must first prove identity, creditworthiness and genuineness; once documentary evidence is produced the AO bears the burden to rebut with cogent material, which was not done here, so additions were deleted. An addition characterised as unexplained expenditure was also deleted where it was recorded as pre operative expenditure in audited books not rejected under section 145(3).
Reopening of assessment under sections 147/148 was quashed where the recorded reasons and administrative approval proceeded on the erroneous factual premise that no return was filed, demonstrating a failure of application of mind and vitiating jurisdiction. On the merits, the tribunal reaffirmed that for additions under section 68 the assessee must first prove identity, creditworthiness and genuineness; once documentary evidence is produced the AO bears the burden to rebut with cogent material, which was not done here, so additions were deleted. An addition characterised as unexplained expenditure was also deleted where it was recorded as pre operative expenditure in audited books not rejected under section 145(3).
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