The assessee's residential status was incorrectly treated as ...

Incorrect residential status determination invalidates tax assessment order.

Case Laws     Income Tax

September 18, 2024

The assessee's residential status was incorrectly treated as non-resident by the revenue authorities when issuing a notice u/s 148, despite being a resident for the relevant assessment year. Consequently, the assessee did not qualify as an eligible assessee u/s 144C(15)(ii) of the Income Tax Act. The law applicable for the assessment year should have been considered, as per the Supreme Court's decision in Shree Choudhary Transport Company vs. Income Tax Officer. The jurisdictional error in determining the residential status rendered the assessment order passed u/s 147 read with Section 144C(13) invalid. The assessee's appeal was allowed by the Appellate Tribunal.

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