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...
A High Court considered adjustment of refunds against disputed tax demand during pending appeals. It declined to interfere with an earlier refund adjustment because the challenge was brought after more than three years without explanation, treating delay as fatal to that claim. It held that Section 245 requires prior intimation before any refund adjustment so the assessee has a real opportunity to object; adjusting the refund the next day, despite a 21-day response window, violated the statute and natural justice. It also held that filing an appeal does not create an automatic stay, but recovery through refund adjustment should normally respect administrative guidance limiting recovery beyond 20% without special justification. The Court ordered refund of the excess over 20% without interest, subject to the pending appeal.
A High Court considered adjustment of refunds against disputed tax demand during pending appeals. It declined to interfere with an earlier refund adjustment because the challenge was brought after more than three years without explanation, treating delay as fatal to that claim. It held that Section 245 requires prior intimation before any refund adjustment so the assessee has a real opportunity to object; adjusting the refund the next day, despite a 21-day response window, violated the statute and natural justice. It also held that filing an appeal does not create an automatic stay, but recovery through refund adjustment should normally respect administrative guidance limiting recovery beyond 20% without special justification. The Court ordered refund of the excess over 20% without interest, subject to the pending appeal.
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