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Karnataka HC Quashes Reassessment Notice for Same Income Against Partner

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Summary

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  • The Karnataka High Court has quashed a reassessment notice under Section 148A(3) against Khivraj Motors, a partnership firm, concerning ₹1.36 crore, due to ongoing proceedings against its partner.
  • The Court directed the same Assessing Officer to reconsider both cases together to prevent inconsistent conclusions regarding the same income.
  • This decision emphasizes that income already offered for tax cannot be reassessed as escaped income in both the firm's and partner's hands.
  • The ruling aims to ensure coordinated assessments and avoid double taxation, while leaving open the question of the correct taxable person for the disputed amount.

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