Reopening of assessment was invalid as the Assessing Officer ...

Reopening invalid: AO didn't verify facts, just repeated info on unexplained credits sans evidence. Lacked independent analysis.

Case Laws Income Tax

July 16, 2024

Reopening of assessment was invalid as the Assessing Officer (AO) recorded reasons without independent application of mind or verification of facts. The AO merely repeated information received from the investigation wing regarding alleged unexplained credits u/s 68, without examining bank statements or other evidence. The AO's conviction about receipt of accommodation entries was unsupported by corroborative evidence. The reasons were recorded under borrowed satisfaction, without the AO possessing or analyzing the relevant information. Consequently, the reopening proceedings u/s 147 by issuing notice u/s 148 were invalid due to lack of proper reasons and failure to apply mind to the material facts.

View Source

← Previous Next →

Reopening of assessment was invalid as the Assessing Officer ...

Reopening invalid: AO didn't verify facts, just repeated info on unexplained credits sans evidence. Lacked independent analysis.

Case Laws Income Tax

July 16, 2024

You may also like:

Reopening of assessment u/s 147 - Unexplained loan - There were no justification for the A.O. to record non-existing, incorrect and wrong facts in the reasons for...

Reopening of assessment - AO was not aware about the death of the assessee at the relevant time when he issued notice under section 148 of the Act. Therefore, notice...

Reopening of assessment u/s 147 was invalid as AO reopened with non-application of mind and higher authorities granted approval u/s 151 mechanically without verifying...

Unexplained cash credit - In fact, the loans are taken from close family members and friends. It is not a case of the AO that the assessee had taken loans from certain...

Addition u/s 56(2)(viia) - buy back of its own shares - The fact remains that the factum of extinguishment of the purchased shares by reducing the paid up capital of the...

Validity of reopening assessment u/s 147 - the reopening of assessment made by the AO on irrelevant facts and on a mere reason to suspect cannot survive. We hold that...

Reopening of assessment u/s 147 - addition u/s 68 as unexplained cash credit - information received from DRI - AO is not empowered in law to carry out any enquiry, if no...

The High Court held that the Assessing Officer (AO) could not reopen the assessment merely based on a belief that the average gross profit in the assessee's business...

Reopening of assessment after expiry of four years due to deemed dividend u/s 2(22)(e) was found invalid. The Assessing Officer (AO) failed to establish that the...

Validity of Reopening of assessment u/s 147 - When the primary facts necessary for assessment are fully and truly disclosed, the AO is not entitled on change of opinion...

Reopening of assessment u/s 147 - net loss of cancellation of forward contract - When the primary facts necessary for assessment are fully and truly disclosed, the AO is...

Reopening of assessment u/s 147 - Mere intimation received from any authority cannot lead to immediate presumption but it needs to be verified by the AO and to apply his...

Reopening of assessment u/s 147 - In case incorrect, wrong and non-existing reasons are recorded by the A.O. for reopening of the assessment and A.O. failed to verify...

The High Court held that the reopening proceedings were invalid as the Assessing Officer (AO) lacked "reasons to believe" supported by fresh tangible material. The AO's...

Credit of TDS - AO cannot simply decline the credit of TDS and he is bound to verify TDS certificate issue in accordance with provisions of law. Further, the AO is also...

Quick Updates: