2025 (2) TMI 58 - SCH - Income Tax

Reopening of assessment - threshold limit for initiating proceedings against an assessee - Under invoicing of exports of iron ores - addition on the basis of the report of Inquiry Commission of Justice M.B. Shah Revenue points out the SLP 2020 (12) TMI 1403 - SC ORDER (LB) was dismissed on the ground of low tax effect. But the contention is that the present should be treated as an exception under the relevant Circular issued by the Ministry of Finance. It is also contended that the issue here is the threshold limit for proceeding un/s 147 of the Income Tax Act but this is only the trigger point for initiating necessary proceedings against the assessee in due course. To receive further instruction the counsel for the petitioner and also for the assessee jointly pray for and are granted three weeks time.

Summary

In the case before the Supreme Court, presided by Hon'ble Justices Hrishikesh Roy and S.V.N. Bhatti, the primary legal issue pertains to the application of Section 147 of the Income Tax Act, which concerns the threshold limit for initiating proceedings against an assessee. The Revenue's counsel argued that although a Special Leave Petition (SLP(C) No.12639/2020) was previously dismissed due to a low tax effect, this case should be considered an exception under a relevant Circular from the Ministry of Finance. Both parties' counsel requested and were granted three weeks to receive further instructions.