1

Commissioner (A) is not empowered to enhance income a new source of income vide 82ITR 9Trib) 176
1

It is assessee’s choice to select a method for determining FMV of shares vide 81 ITR (Trib) (SN) 78
1

No TP adjustment of trade receivables in case of a debt-free company vide 81ITR (Trib) (SN) 94
1

To accord registration as a charitable institution under income tax dominant purpose must be charitable and satisfies the conditions laid down us 2(15) vide 426ITR108 despite having non charitable ancillary objects meant to achieve the dominant purpose
1

Transactions with dubious entities is reason enough for case reopening vide 421ITR624

Slight irregularities could mar reassessment

ByCA Gopal Nathani

May 31, 2022

Vide [2022] 19 ITR-OL 606 (Mad) a slight irregularity in the proceedings carried out by the AO can provide a cause of action against the reassessment. In this case the AO dealt with both the objections of the assessee and merits at the time of passing of reassessment order whereas by the ratio of SC decision in GKN Driveshafts (India) Ltd. v. ITO [2003] 259 ITR 19 (SC) it is procedurally desirable that the objections to reopening of the assessment is to be conveyed before issuing the show-cause notices.

In other words the objections to reopening of the assessment in this case was conveyed after issuing the show-cause notices. This has been counted as an irregularity thereby resulting in setting aside of reassessment.