The Appellate Tribunal considered a case involving re-opening ...

Reopening of tax assessment based on book profits under s. 115JB not valid. Tax liability on book profits exceeds total income.

Case Laws     Income Tax

June 13, 2024

The Appellate Tribunal considered a case involving re-opening u/s 147/148 to adjust book profits and assess escaped income. It was held that the adjustments made by the assessee in determining normal provisions did not constitute a failure to disclose facts, thus the escapement of book profits was not sustainable. The assessee argued that the tax liability on book profits exceeded that on income under normal provisions. Citing relevant case law, it was found that the reassessment was not sustainable. The Tribunal quashed the reassessment notice and declared the order null and void due to lack of jurisdiction u/s 147, rendering discussions on additions and disallowances unnecessary. The assessee's appeal was allowed.

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