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

NOTICE SOLELY ON AUDIT OBJECTION WITHOUT INDEPENDENT APPLICATION OF MIND

ByCA Gopal Nathani

Jan 31, 2024

Reopening a closed assessment is a serious business and therefore ought to meet all the tests of reopening. The Supreme Court in [2024] 460 ITR 729 (SC) in dismissing the department SLP held as invalid the action for reopening which was based solely on an audit objection without satisfying the test of independent application of mind of the AO. This mind application test is today even more relevant in the present protocol for reopening which revolves around enquired piece of information from select source/database. AO who merely relies on gathered information in his 148A (b) notice without anything more would defy the scheme/law and this SC ruling.