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<!DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd"> <html xmlns="http://www.w3.org/1999/xhtml"> <head> </head> <body> <div style="font-family:Verdana, Geneva, sans-serif; font-size:12px; text-align:justify"> <table width="800" border="0" style="border:1px solid #ccc;padding:5px;" align="center" cellpadding="6" cellspacing="0"> <tr> <td align="left" valign="top"> <br /> High Court of Delhi <br /><br /> Assessing Officer cannot reopen assessment on erroneous assumptions<br /><br /> MANU/DE/2677/2015 - (15 Sep 2015)<br /><br /> </td> </tr> <tr> <td align="left" valign="top">Oriental Insurance Company v. Commissioner of Income Tax</td> </tr> <tr> <td align="left" valign="top" style="background-color:#FDEDCE"><strong>To reopen a concluded income tax assessment for escaped income, a reason to suspect cannot be a reason to believe, which must be rational and bear a direct nexus to the material on which such a belief is based. The Court held that an Assessing Officer does not have jurisdiction to reopen an assessment for ‘believed’ escaped income, if such a belief is not based on tangible material or information. It noted, the Officer had reopened the assessment for escaped income on grounds other than those which suggested escaped income.</strong></td> </tr> <tr> <td align="left" valign="top" ><strong>Relevant : Section 147 Income Tax Act, 1961 nActCompID=43809 Commissioner of Income-Tax v. Kelvinator of India Ltd.: <manuid>MANU/SC/0047/2010</manuid> Prabhu Dayal Rangwala v. Commissioner of Income-Tax: <manuid>MANU/DE/0696/2015</manuid></strong></td> </tr> <tr> <td align="left" valign="top" ><strong>Tags : Tax, assessment, escaped income, belief</strong></td> </tr> <tr> <td align="left" valign="top"> </td> </tr> <tr> <!--<td><strong>Source : <a target="_new" href="http://www.manupatrafast.com/">newsroom.manupatra.com</a></strong></td>--> <td align="left" valign="top"><strong>Source : newsroom.manupatra.com</strong></td> </tr> <tr> <td align="left" valign="top"> </td> </tr> <tr> <td align="left" valign="top">Regards</td> </tr> <tr> <td align="left" valign="top">Team Manupatra</td> </tr> <tr> <td align="left" valign="top"> </td> </tr> </table> </div> </body> </html>