#tax reassessment

The Jaipur ITAT ruled that the word ‘and’ in Section 147 operates conjunctively, so an Assessing Officer can only reopen assessment for income already identified as escaped, not for any other income. This narrows reassessment powers and shields taxpayers from unexpected additions. The ruling applies to all cases invoking Section 147 nationwide.

ITAT Panaji quashed the 29 July 2022 Section 148 notice as time-barred under Section 149(1)(a), setting aside assessments for AY 2016-17 and 2017-18. The tribunal held that reassessment cannot proceed when the three-year limitation expires and the monetary threshold is below Rs 50 lakh, applying the Ganesh Dass Khanna test. Taxpayers gain protection from stale reassessment notices.

The Delhi ITAT has ruled that a reassessment notice under Section 148 is legally void if the assessing officer fails to obtain mandatory prior approval under Section 151, reinforcing procedural safeguards for taxpayers. This decision impacts all reassessment proceedings initiated after search and survey actions, requiring strict compliance with approval protocols to avoid nullification.

ITAT Delhi quashes reassessment proceedings where the Assessing Officer introduced fresh grounds in the 148A(d) order that were absent in the original notice under Section 148A(b). The ruling reinforces that reassessment cannot be a fishing expedition and must strictly comply with statutory procedure to uphold natural justice for taxpayers.