https://www.taxtmi.com/caselaws?id=254382 The court ruled in favor of the petitioner, finding that the notice issued under Section 148 of the Income-tax Act, 1961 to reopen the assessment for alleged income escapement was invalid. The court held that the alleged understatement of closing stock was adequately explained by the petitioner as initial stock received under a Business Transfer Agreement, correctly reflected in financial statements. Emphasizing the Assessing Officer's need for a genuine belief in income escapement, the court quashed the notice and subsequent order due to lack of merit in the allegations and incorrect application of the law by revenue authorities. en-us Tue, 16 Dec 2014 00:00:00 +0530 Tue, 12 May 2015 18:16:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=254382 The court ruled in favor of the petitioner, finding that the notice issued under Section 148 of the Income-tax Act, 1961 to reopen the assessment for alleged income escapement was invalid. The court held that the alleged understatement of closing stock was adequately explained by the petitioner as initial stock received under a Business Transfer Agreement, correctly reflected in financial statements. Emphasizing the Assessing Officer's need for a genuine belief in income escapement, the court quashed the notice and subsequent order due to lack of merit in the allegations and incorrect application of the law by revenue authorities. Case-Laws Income Tax Tue, 16 Dec 2014 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=254382