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| The Tax Publishers2020 TaxPub(DT) 2491 (Bom-HC) : (2020) 315 CTR 0347 INCOME TAX ACT, 1961
Section 148
Since Court accepted the position that earlier Trust and current LLC continued to be the same person and gain and loss earned by assessee in its earlier Avatar would in law not be denied only because of change in status from Trust to LLC, therefore, reopening of assessment on the reasoning that loss of old trust fund could not be carried forward by new LLC fund, was vitiated as very foundation for formation of belief was erroneous as there was complete misreading of judgment of Court.
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Reassessment - Notice under section 148 - Formation of wrong belief mis-reading judgment of court as regards change in assessee's status -
AO issued notice under section 148 so as to reopen assessment on the reasoning that new LLC fund, i.e., assessee was credited by re-organisation of old trust fund and both old trust fund and the new LLC fund were separate legal entities for the purpose of the Act and therefore, loss of old trust fund could not be carried forward by new LLC fund. Held : Court accepted the position that earlier Trust and current LLC continued to be the same person and gain and loss earned by assessee in its earlier Avatar would in law not be denied only because of change in status from Trust to LLC. Therefore, very foundation for formation of belief was erroneous and complete misreading of judgment of Court vitiated reassessment notice under section 148.
REFERRED :
FAVOUR : In assessee's favour.
A.Y. : 2012-13
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