Reopening of assessment challenged on the ground that an...

Reopening of assessment challenged on the ground that an interest-free loan to a director constituted a deemed dividend; the Assessing Officer relied on alleged non-disclosure to invoke extended limitation. The court found audited accounts and the directors ledger disclosed the primary fact of the interest-free loan, so invocation of extended limitation and issuance of reassessment notice were jurisdictionally invalid; reassessment second time on the same transaction was arbitrary and contrary to the requirement that an assessee need only disclose primary facts, and violated equality, economic liberty and property protections, resulting in allowance of the writ petitions.