The High Court held that the reassessment proceedings initiated ...

Audit objection can't justify reassessment if contrary to facts & evidence already accepted by tax dept.

December 4, 2024

Case Laws Income Tax HC

The High Court held that the reassessment proceedings initiated by the Assessing Officer based on an audit objection were invalid. The Court observed that the Assessing Officer could not have assumed jurisdiction by relying on the audit objection, which was contrary to the facts and evidence on record, especially when the department had previously accepted and granted depreciation on the goodwill claimed by the assessee for earlier years. The Court emphasized that even though an audit objection can be considered as "information" for reopening an assessment u/s 148 of the Act, the Assessing Officer cannot merely reiterate the audit objection while ignoring the facts of the case and the assessee's reply filed u/s 148A(b).

View Source

← Previous Next →

The High Court held that the reassessment proceedings initiated ...

Audit objection can't justify reassessment if contrary to facts & evidence already accepted by tax dept.

December 4, 2024

Case Laws Income Tax HC

You may also like:

The case pertains to the reopening of assessment u/s 147, where the reasons recorded were based on audit objections raised by the internal audit party regarding...

Addition on failure to show the “gitty’ expenses in Closing Stock or WIP - addition based on audit objection - goods in transit - the AO passed the order in haste and it...

ITAT dismissed assessee's appeal citing low tax effect as per CBDT Circular No.3/2018, giving Revenue liberty to recall dismissal if covered by exceptions. Assessee...

The High Court examined the validity of reassessment proceedings regarding the treatment of certain expenditures as capital expenditure. The Court found that the...

Revenue Audit objection should be accepted and remedial action should be taken in a case where the audit objection relating to an error of facts or an issue of law is...

Rectification of mistake u/s 154 - AO issued notice u/s 154 based on audit objections, adding waiver of principal amount and revising book profit. Tribunal dismissed...

Reopening of assessment u/s 147 - reply to the audit objections - in fact AO applied his mind to the audit party objection and formed a clear opinion that there is no...

Penalty u/s 78 - The SCN was issued merely on audit objections and in view of the various decisions, no suppression can be alleged merely on audit objections.

Validity of Reopening of assessment u/s 147 - The Tribunal emphasized the principle that for reassessment under Section 147 of the Income Tax Act, the onus is on the...

The assessee university's application for registration u/s 10(23C)(vi) was rejected due to non-submission of audited accounts and failure to provide necessary...

Assessment completed u/s 143(3) accepting assessee's return, which included export incentive and foreign exchange fluctuation as other business income. Subsequently,...

Reopening of assessment u/s 147 - it is evident that assessing officer has para-wise dealt with the objections of the appellant. We do not feel the need to delve into...

Reopening of assessment - Non deduction of TDS u/s 194C - reliance on audit objection - it is evident from the assessment order that the AO had already scrutinized the...

Validity of show cause notice - As the audit objection raised by the revenue has already been settled by them on 18.05.2007, in that circumstances, on the same audit...

Reassessment proceedings initiated solely based on an audit objection without fresh tangible material are impermissible. A mere change of opinion by the Assessing...

Quick Updates: