{"id":58175,"date":"2026-01-10T10:08:16","date_gmt":"2026-01-10T04:38:16","guid":{"rendered":"https:\/\/itatonline.org\/digest\/modern-living-solutions-p-ltd-v-ito-2024-164-taxmann-com-763-bomhc\/"},"modified":"2026-01-10T10:08:16","modified_gmt":"2026-01-10T04:38:16","slug":"modern-living-solutions-p-ltd-v-ito-2024-164-taxmann-com-763-bomhc","status":"publish","type":"post","link":"https:\/\/itatonline.org\/digest\/modern-living-solutions-p-ltd-v-ito-2024-164-taxmann-com-763-bomhc\/","title":{"rendered":"Modern Living Solutions (P.) Ltd. v. ITO [2024] 164 taxmann.com 763 (Bom)(HC)"},"content":{"rendered":"<p>The assessee\u2019s return declaring a loss was accepted via an intimation under section 143(1). Later, the assessment was sought to be reopened by a notice under section 148, issued on 31.03.2021, based on AIR data showing high-value bank credits which had caused the case to be flagged by the Non-Filer Management System (NMS). The High Court quashed the reassessment proceedings. It held that a reopening under the unamended section 147 requires a &#8220;<em>reason to believe<\/em>&#8221; formed by the Assessing Officer based on tangible material, not merely a system-generated alert. The Court found there was no independent application of mind or a live link established between the raw information and the formation of a belief that income had escaped assessment. A reopening based on borrowed satisfaction from the NMS was held to be invalid. (AY. 2017-18)<\/p>\n","protected":false},"excerpt":{"rendered":"<p>S. 147: Reassessment-Within four years-Reason to believe-Intimation under S. 143(1)-Reopening notice based on a system-generated alert from the Non-Filer Management System (NMS) without independent application of mind is invalid. [S. 68,139,  143(1), 148, Art. 226]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21],"tags":[],"class_list":["post-58175","post","type-post","status-publish","format-standard","hentry","category-income-tax-act"],"acf":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-f8j","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/58175","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/comments?post=58175"}],"version-history":[{"count":1,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/58175\/revisions"}],"predecessor-version":[{"id":58176,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/58175\/revisions\/58176"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=58175"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=58175"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=58175"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}