Can the AO open re-assessment on the basis of facts and documents which are already available?
Case: Deputy Commissioner of Income Tax vs Sovereign Pharma Pvt Ltd, ITAT Pune
- The Assessing Officer (AO) reopened the assessment four years from the end of the relevant assessment year and issued the notice under u/s 148 of the act.
- During the reassessment, the AO made an addition on account of difference in receipts of sundry debtors.
- The reassessment proceedings are not valid as it is:
- purely on AO’s change of opinion
- to cover up alleged deficiencies in the assessment order
- initiated after reappreciation of material already available with the AO
- The AO cannot invoke the provisions of section 148 or 147 to make additions on mere reappreciation of the facts or negligence if documents are already on record.
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