Validity of additions made without issuing show cause notice

Case: Mr.P N Krishnamurthy vs. Income Tax officer Ward-6(2)(3), Bangalore ITAT Outcome: Remand Facts The Assessee had filed its return of income on 29.11.2014 for the assessment year 2013-14. The return was processed under section 143(1) of the Income Tax Act. Subsequently, notice under section 143(2) of the Act was issued and served on the … Continue reading Validity of additions made without issuing show cause notice

Can the scope of a Limited Scrutiny Assessment be Expanded u/s 143(2)?

A limited scrutiny assessment is one which is undertaken by the assessing officer when he/she finds certain discrepancies in the income tax return which he/she believes need to be investigated further. In essence, when the assessing officer has reason to believe that a certain amount of income of the assessee has escaped the tax net … Continue reading Can the scope of a Limited Scrutiny Assessment be Expanded u/s 143(2)?

Is the CIT(A)’S order that provides for a 25% disallowance of bogus purchases is erroneous?

Case: ITO -WD- 3 (1) vs BHADRESH JAYANTILAL SHAH DOMBIVALI, ITAT MUMBAI. Listen to the case summary ITO -WD- 3 (1) vs BHADRESH JAYANTILAL SHAH DOMBIVALI, ITAT MUMBAI here Background: The assesee who was engaged in the business of trading had shown certain bogus purchases against returned income. Consequently, order of re-assessment was passed under … Continue reading Is the CIT(A)’S order that provides for a 25% disallowance of bogus purchases is erroneous?