https://www.taxtmi.com/caselaws?id=16331 Reopening of assessment under s.147(a) was challenged on the ground that the statutory "twin conditions" and recording of reasons were not shown to exist. The HC held that jurisdiction to issue notice under s.148 arises only if the AO records reasons demonstrating (i) "reason to believe" that taxable income escaped assessment and (ii) that such escapement was attributable to the assessee's omission or failure to file a return or to disclose fully and truly all material facts; the sanctioning authority must also be satisfied on those recorded reasons. As the record was not produced, the belatedly asserted reasons were uncertain and, in any event, lacked germane nexus and proximity to escapement due to nondisclosure, the notice was quashed, leaving liberty for fresh action in accordance with ss.147-148. en-us Fri, 04 Dec 1998 00:00:00 +0530 Thu, 18 Dec 2025 16:32:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=16331 Reopening of assessment under s.147(a) was challenged on the ground that the statutory "twin conditions" and recording of reasons were not shown to exist. The HC held that jurisdiction to issue notice under s.148 arises only if the AO records reasons demonstrating (i) "reason to believe" that taxable income escaped assessment and (ii) that such escapement was attributable to the assessee's omission or failure to file a return or to disclose fully and truly all material facts; the sanctioning authority must also be satisfied on those recorded reasons. As the record was not produced, the belatedly asserted reasons were uncertain and, in any event, lacked germane nexus and proximity to escapement due to nondisclosure, the notice was quashed, leaving liberty for fresh action in accordance with ss.147-148. Case-Laws Income Tax Fri, 04 Dec 1998 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=16331