https://www.taxtmi.com/caselaws?id=763899 The ITAT Delhi quashed a reassessment order as bad in law. The AO had reopened assessment for credit entries that escaped assessment but disallowed 10% of purchases as expenditure during proceedings. The tribunal held that while section 147 Explanation 3 allows AOs to assess escaped items discovered during proceedings, this power is limited. Following Delhi HC precedent in Ranbaxy Laboratories and Bombay HC in Jet Airways, the AO cannot make roving enquiries into unrelated items beyond the original reasons to believe recorded for initiating reassessment proceedings. en-us Fri, 27 Dec 2024 00:00:00 +0530 Mon, 30 Dec 2024 12:49:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=763899 The ITAT Delhi quashed a reassessment order as bad in law. The AO had reopened assessment for credit entries that escaped assessment but disallowed 10% of purchases as expenditure during proceedings. The tribunal held that while section 147 Explanation 3 allows AOs to assess escaped items discovered during proceedings, this power is limited. Following Delhi HC precedent in Ranbaxy Laboratories and Bombay HC in Jet Airways, the AO cannot make roving enquiries into unrelated items beyond the original reasons to believe recorded for initiating reassessment proceedings. Case-Laws Income Tax Fri, 27 Dec 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=763899