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...
HC held that reassessment based on an undated third-party complaint and other unverified material could not be sustained where there was no direct nexus with the assessee. The complaint was not authenticated, its author was not examined, and no further investigation linked the petitioner to any alleged cash transaction. The statements later recorded and the image of the cash receipt also failed to show any transaction by or with the petitioner. Reopening founded on conjectures and surmises was therefore unsustainable, and the reassessment notices and the order under section 148A(3) were quashed.
HC held that reassessment based on an undated third-party complaint and other unverified material could not be sustained where there was no direct nexus with the assessee. The complaint was not authenticated, its author was not examined, and no further investigation linked the petitioner to any alleged cash transaction. The statements later recorded and the image of the cash receipt also failed to show any transaction by or with the petitioner. Reopening founded on conjectures and surmises was therefore unsustainable, and the reassessment notices and the order under section 148A(3) were quashed.
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