https://www.taxtmi.com/caselaws?id=290022 Reassessment under section 34 of the Income-tax Act, 1922, and section 15 of the Excess Profits Tax Act, 1940, requires the statutory basis for reopening to be established on the record; where the alleged false representation or escaped income is not supported by the materials, reopening fails. On the facts noted, the assessee had not represented that payment to the Travancore State had already been made, so the foundation for reassessment was not made out. For mercantile accounts, an ascertained and legally enforceable liability may be recognised even if unpaid, but the amount cannot be brought to tax merely because it was later left unpaid. The reassessment was therefore unsustainable. en-us Wed, 15 Feb 1956 00:00:00 +0530 Fri, 04 Sep 2020 16:09:27 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=290022 Reassessment under section 34 of the Income-tax Act, 1922, and section 15 of the Excess Profits Tax Act, 1940, requires the statutory basis for reopening to be established on the record; where the alleged false representation or escaped income is not supported by the materials, reopening fails. On the facts noted, the assessee had not represented that payment to the Travancore State had already been made, so the foundation for reassessment was not made out. For mercantile accounts, an ascertained and legally enforceable liability may be recognised even if unpaid, but the amount cannot be brought to tax merely because it was later left unpaid. The reassessment was therefore unsustainable. Case-Laws Income Tax Wed, 15 Feb 1956 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=290022