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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. 

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