The question (6 marks)
An assessment was completed after the assessee had produced, and the officer had examined, all the primary facts about a claim. A successor officer, reading the same record, forms the view that the claim should have been disallowed and proposes to reopen the year. No fresh material has come to him. Advise the assessee on the validity of the proposed reopening and on the procedure the officer must follow if he persists. (6 marks)
MU Module III, reassessment of income escaping assessment; pack ch. 03, problem question.
Plan your answer on paper before you look at the authorities — issue first, then the rule, then apply it to these facts.
It tests Unit 3 · Assessment, Authorities, Appeals and Penalties of Law of Taxation.
Authorities you will need
- Sections 279 to 283 and 286, Income-tax Act
- Income-Tax Officer v. Lakhmani Mewal Das
- Gemini Leather Stores v. ITO
- Section 536(2)(c), Income-tax Act
How an answer is marked
A full-marks answer names the issue in one line, states the rule with its section, cites the authority, applies it to these facts and concludes — in that order. The app's model answer for this question is written in exactly that shape, with a checklist to mark your own attempt against.