Topic
The Chhattisgarh High Court held that reassessment under Section 147 IT Act requires fresh tangible material, not merely a change of opinion, upholding the Tribunal’s quash of the AY 2009-10 order. It guards taxpayers against arbitrary reopenings.
Supreme Court rules that reassessment under Section 147 IT Act is justified if fresh tangible material exposes income escapement, regardless of prior disclosure. The judgment distinguishes between profit and revenue sharing in Association of Persons (AOP) agreements, impacting tax liability assessments for entities involved in such arrangements.
ITAT Ahmedabad quashed reassessment proceedings under Section 147 IT Act, ruling that unverified investigation reports without a live nexus to the assessee’s transactions fail to constitute valid tangible material. The tribunal emphasized that reopening assessments based on mere suspicion or third-party reports violates natural justice and the statutory threshold for escapement.
ITAT holds that reopening under Section 147 requires tangible material linking income escapement to the assessment year; mere information from investigation wing is insufficient.