HC quashed reassessment notice issued beyond four-year...

HC quashed reassessment notice issued beyond four-year limitation period, holding it constituted impermissible review rather than valid reopening. Court determined that reassessment proceedings require tangible material beyond existing records to form requisite belief regarding income escapement. AO's reliance solely on previously filed return accepted under section 143(1) without additional material constituted arbitrary exercise of powers under section 147. Following Orient Craft Ltd precedent, HC ruled that absence of tangible material renders reopening without jurisdiction, distinguishing between legitimate reassessment based on new evidence versus prohibited review of earlier proceedings. Assessment invalidated in assessee's favor due to lack of substantive grounds for reopening.

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