NAVDURGA TRANSPORT COMPANY,HYDERABAD vs. INCOME TAX OFFICER, WARD-7(1), HYDERABAD

Facts

The assessee firm's appeals were against orders related to reassessment proceedings under Section 147. The AO initiated proceedings based on information that the assessee deposited a large sum but did not file a return, assessing it as unexplained money. The CIT(A) partly allowed the appeals by setting aside the matter to the AO to verify if the income was already offered to tax by a partner.

Held

The Tribunal held that the assessee firm participated in the reassessment proceedings, thus waiving any objection regarding the validity of the notice under Section 148, as per Section 292BB. Regarding the second appeal, the Tribunal followed the view that the enhanced tax rate under Section 115BBE was applicable from AY 2018-19, not AY 2017-18.

Key Issues

Whether the reassessment proceedings were validly initiated and whether the special tax rate under Section 115BBE was applicable for AY 2017-18.