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| The Tax Publishers2019 TaxPub(DT) 8119 (Del-Trib) INCOME TAX ACT, 1961
Section 147
To determine as to whether commencement of reassessment proceedings was valid, it had only to be seen whether there was prima facie some material on the basis of which AO could re-open the case. Sufficiency and correctness of material was not to be considered at that stage. Further, assessment was earlier completed under section 143(1) and not under section 143(3). Under these circumstances, there was no merit in arguments advanced by assessee that re-opening of assessment was not as per law. Thus, reassessment proceeding had validly been initiated and was, therefore, upheld.
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Reassessment - Validity - Assessee pleading AO not having drawn any conclusion outside return of income - Assessment earlier completed under section 143(1) and not under section 143(3)
AO reopened assessment on the ground that assessee had wrongly adjusted interest on housing loan against business profit and thus income of Rs. 3 lakhs remained to be taxed. Assessee challenged this on the ground that AO had not dfawn any information or conclusion outside the return of income filed, therefore, such reopening was bad in law.Held: To determine as whether commencement of reassessment proceedings was valid, it had only to be seen whether there was prima facie some material on the basis of which AO could re-open the case. Sufficiency and correctness of material is not to be considered at that stage. Further, assessment was earlier completed under section 143(1) and not under section 143(3). Under these circumstances, there was no merit in arguments advanced by assessee that re-opening of assessment was not as per law. Thus, reassessment proceeding had validly been initiated and, therefore, upheld.
REFERRED :
FAVOUR : Against the assessee.
A.Y. : 2011-12
INCOME TAX ACT, 1961
Section 143(3)
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