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Karnataka HC Quashes Reassessment Notice for Ignoring Assessee’s Reply

TaxGuru
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Summary

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  • The Karnataka High Court has quashed a reassessment notice under Section 148, emphasizing that such proceedings cannot begin with mere doubts or lead to fishing enquiries.
  • Petitioner Udai Raj Chordia had claimed ₹1,42,80,000 as commission income from Tata AIG but argued his disclosures were ignored by the Assessing Officer.
  • The court found the Assessing Officer failed to adequately consider the petitioner’s response and supporting documents before issuing the notice.
  • While the notice was quashed, the court restored proceedings for fresh consideration, allowing potential reassessment if justified after proper examination.

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