Reassessment jurisdiction fails where accepted agent status and fixed taxable income leave no basis to allege escapement of income.

Reassessment under Sections 148A(b), 148A(d) and 148 could not be sustained where the assessee's status as an agent of the State Government had already been accepted and only a fixed taxable income of Rs. 5,00,000 had been brought to tax. The Tribunal and earlier court findings showed that the returned income was accepted under Section 143(3) at that figure, leaving no material to indicate escapement of income. As the jurisdictional foundation for reopening was absent, the reassessment proceedings were quashed in favour of the assessee.

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Issues: Whether the reassessment notices and orders could be sustained when the assessee's status as an agent of the State Government and its fixed taxable income of Rs. 5,00,000 had already been accepted, so that no income escaped assessment.

Analysis: The accepted findings of the Income Tax Appellate Tribunal and earlier court orders showed that the assessee functioned as an agent of the State Government and that only a fixed amount of Rs. 5,00,000 was assessable in its hands. The assessment under Section 143(3) of the Income-tax Act, 1961 had also accepted the returned income at that figure. On that basis, there was no material to suggest escapement of income, and the jurisdictional foundation for reopening under Sections 148A(b), 148A(d) and 148 was absent.

Conclusion: The reassessment proceedings could not be sustained and were quashed, in favour of the assessee.

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