Reassessment -Notice to non-existing company is invalid
BDR Builders and Developers Pvt. Ltd. v. ACIT [397 ITR 529], Delhi High Court has held that notice issued after order of the court approving amalgamation in name of non-existent transferred company is invalid. On the same logic notice issued in the name of erstwhile company is also invalid. Therefore contention of the LLP is sustainable
Reassessment – Reopening of assessment – S. 147, 148
Section 149 provides that no notice under section 148 shall be issued for the relevant assessment year – i) If four years have elapsed from the end of the relevant assessment year. ii) If four years but not less than six years, have elapsed from the end of the relevant assessment year unless income chargeable to tax which has escaped assessment amount to or likely to amount to one lakh rupees or more for that year.
Whether Reopening Of Assessment Is Valid Without Any Corroborative Assessment?
Unless there is corroborative evidence with the Assessing Office that an assessee has paid “cash-on money” to builders, the reopening is not valid.
Can Assessment Be Reopened Or Rectified On The Basis Of Valuation Report Of DVO?
The Calcutta High Court in Saharanpur Light Railway Co. Ltd. vs. CIT [208 ITR 882] has observed that the Assessing Officer loses his power in the matter of valuation only when the Valuation Officer makes a report, the power of valuation has to revert to the Assessing Officer, unless the Valuation Officer sends his report, there is no bar on the Assessing Officer’s