The provisions to reopen the assessment contained in the Act have undergone a huge
change. As per this newly introduced provision, before issuing a notice for reassessment,
the assessing officer (AO) must conduct an inquiry with respect to the information which
suggests that income chargeable to tax has escaped assessment. The AO is also required
to provide an opportunity of being heard to the taxpayer while conducting such inquiry.
Basis material available on record, including the reply of the assessee, the AO is required
to decide whether or not the case is fit for issuance of notice for reassessment.

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