#section 147

If Assessee is taxed under ‘MAT’ to ‘MAT’ – No Escapement, No Reopening

- CA Vidhan Surana & CA Sunil Maloo

An epiphany on Reopening u/s 148- If Assessee is taxed under ‘MAT’ to ‘MAT’ – No Escapement, No Reopening

The AO is empowered to assess or reassess the total income of the Assessee by reopening the Assessment, invoking the provisions of section 148 of the Act. The authors have visualized in-depth manifestation with respect to the jurisdiction of the AO in…

SC Nullifies Bombay HC Verdict on full & true disclosure of material facts

The Indian Hume Pipe Co Ltd vs. ACIT (Supreme Court), Petition (s) for Special Leave to Appeal (civil) No.(s) 5195/2012

Learned counsel for the assessee seeks permission to withdraw this Special Leave Petition in view of the fact that assessee’s appeal, bearing No. IT No.63/2012-2013 is pending before Commissioner of Income-tax (Appeals) against the Order of re-assessment dated 29th May, 2012. We…

AO must intimate Assessee that reassessment proceedings been initiated with due approval

GTL Limited vs. ACIT (ITAT Mumbai), ITA No. : 6416/Mum/2010, Date of Pronouncement : 02-01-2015

In this case Major discrepancy noticed during the course of arguments is that there is no mention of authorization of a higher authority to initiate the current reassessment proceedings. Hon’ble Bombay High Court in the case of DSJ Communications vs DCIT, reported in 222 Taxman 129 (Bom), held that…

It cannot be said that AO has not applied his mind when all material was placed by Assessee before him

In the impugned order dt. 13th Dec., 2007 reference has been made to the provisions of Expln. 1 to s. 147 which provides that the production before the AO of account books or other evidence from which material evidence could, with due diligence, have been discovered by the AO will not necessarily amount to disclosure within the meaning of the section. In our view, this is not a case which…

Reopening on mere possibility of revenue loss is based on presumption & is invalid

The assessee is a FUND and a resident of Denmark. Along with its return of income, in India, the assessee had submitted ‘Tax Residency Certificate’ issued by the Danish Authorities in order to claim the benefit of Article 14 of India-Denmark DTAA. From the plain reading of the ‘reasons recorded’, it is seen that the Assessing Officer is first of all, is not clear whether the assessee is tax…

S. 148 Reopening based on re-appreciation of same material on record not valid

Global Signal Cables (India) Pvt. Ltd. Vs. DCIT (Delhi High Court), W.P.(C) 747/2014, Judgment pronounced on:17.10.2014

In a case where the proviso to section 147 of the said Act was applicable, it must be clearly indicated that the understatement of income was on account of the failure on the part of the assessee to fully and truly disclose all material facts necessary for the assessment. The…

In case of disclosure of material facts of during original assessment proceeding, AO cannot issue re-assessment notice u/s 148 of the Act to find nature of same

  It is a settled position in law that for reassessment proceedings beyond the period of four years from the end of the relevant assessment year, it is an essential condition that the income chargeable to tax which has allegedly escaped assessment must be occasioned, inter alia, by reason of the failure on the part of the assessee to disclose fully and truly all material facts necessary for the…