The High Court of Delhi has held that where reopening is sought of an assessment

The High Court of Delhi has held that where reopening is sought of an assessment

The High Court of Delhi has held that where reopening is sought of an assessment in a situation where the initial return is processed under section 143 (1) of the Act, the AO can form reasons to believe that income has escaped assessment by examining the very return and/or the documents accompanying the return. It is not necessary in such a case for the AO to come across some fresh tangible material to form 'reasons to believe' that income has escaped assessment because the order passed under section 143(1) of the Act is not an assessment for the purposes of Section 147 of the Act. (Ernst & Young U.S. LLP v. ACIT(IT))



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