S. 147: A Treatise On The Law Of Reopening Of Assessments
CA Vidhan Surana & CA Sunil Maloo
S. 147 confers wide powers on the AO to reopen completed assessments and bring to tax income which has escaped assessment. However, there are several technical rules that have to complied with by the AO. The authors have carefully studied the entire law on the subject and presented it in a clear and succinct manner so that it can be ensured that the reopening is as per the law
The assessing officer is empowered under section 147 of the Income Tax Act, 1961 to assess or reassess the income escaping assessment. This is popularly known as ‘reopening of the assessment’.
In following cases, it would be deemed that income chargeable to tax has escaped assessment:
– Where no return is furnished for the relevant A.Y.
– Where return has been furnished but assessment is not done and it is noticed by the Assessing Officer that the assessee has understated the income or has claimed excessive loss, deduction, allowance or relief in the return;
– where the Assessee has failed to furnish a report in respect of any international transaction which he was so required under section 92E
– where an assessment has been made, but—
– income chargeable to tax has been underassessed ; or
– such income has been assessed at too low a rate ; or
– such income has been made subject of excessive relief under this Act ; or
– excessive loss or depreciation allowance or any other allowance under this Act has been computed.