https://www.taxtmi.com/caselaws?id=404728 Gujarat HC held that reopening of assessment under Section 147 after four years was invalid where assessee had fully disclosed all material facts during original assessment regarding Section 14A disallowance. Court found no fresh tangible material existed to form requisite belief for income escapement, citing Kelvinator precedent requiring such material to prevent arbitrary power exercise. Additionally, proposed disallowance exceeded exempt income, violating established principle that Section 14A disallowance cannot exceed exempt income. Twin conditions for reopening assessment after four years were not satisfied, making the proceedings jurisdictionally invalid. Decided in favor of assessee. en-us Fri, 05 Feb 2021 00:00:00 +0530 Fri, 06 Jun 2025 11:35:25 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=404728 Gujarat HC held that reopening of assessment under Section 147 after four years was invalid where assessee had fully disclosed all material facts during original assessment regarding Section 14A disallowance. Court found no fresh tangible material existed to form requisite belief for income escapement, citing Kelvinator precedent requiring such material to prevent arbitrary power exercise. Additionally, proposed disallowance exceeded exempt income, violating established principle that Section 14A disallowance cannot exceed exempt income. Twin conditions for reopening assessment after four years were not satisfied, making the proceedings jurisdictionally invalid. Decided in favor of assessee. Case-Laws Income Tax Fri, 05 Feb 2021 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=404728