Tuesday, 18 December 2018

SC : Dismisses SLP against re-assessment initiation based on special audit report

SC dismisses assessee-company’s SLP challenging Bombay HC order upholding re-assessment initiation (beyond 4 yrs period) based on a special audit report; HC had held that the special audit report constituted fresh tangible material with AO to reach the reasonable belief of income escapement; HC had rejected assessee’s stand that since the special audit report was prepared for Forward Market Commission, it could not be relied upon as its purpose was not to detect tax evasion; HC had opined that “the power of the AO to reopen an assessment...is not fettered or circumscribed, to be formed only on material found during a tax audit or with material found during examining a case of tax evasion.”:SC 

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