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Mumbai ITAT Quashes Reassessment, Invalidates Pre-Return 143(2) Notice and Deletes ₹2 Crore Addition

TaxGuru
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Summary

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  • The Mumbai ITAT has quashed a reassessment order, ruling that a notice issued under Section 143(2) before the return was filed is invalid.
  • The Tribunal emphasized that no fresh notice was issued after the return, rendering the reassessment void ab initio.
  • Additionally, it found that the loans in question were substantiated by extensive documentation, dismissing them as unexplained cash credits.
  • This decision underscores the necessity of procedural compliance in tax assessments and may influence future cases involving similar issues.

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