The High Court held that the Assessing Officer could not reopen ...

Reopening of assessment quashed as no income escaped assessment despite search info.

Case Laws     Income Tax

September 18, 2024

The High Court held that the Assessing Officer could not reopen the assessment u/s 147 as the basic precondition of having "reason to believe" that income had escaped assessment was not satisfied. Despite information from the search action u/s 132, when the petitioner was assessed u/s 115JB and had paid tax at 7.5%, adding the alleged escaped income would result in an amount less than the tax already paid. Therefore, no income had actually escaped assessment. Consequently, the impugned notices u/s 148 and subsequent proceedings were unsustainable, and the decision was in favor of the assessee.

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