https://www.taxtmi.com/caselaws?id=409266 Reassessment under section 147 can survive only if the recorded reasons for reopening are legally and factually sustainable. Here, the reopening was based on an assumed taxable gain from property transactions, but the sale deed had already been cancelled by the State Government, so the factual basis for the belief of escapement of income failed. The attempt to justify the reassessment under Explanation 3 to section 147 was rejected because that provision does not cure a reopening where the original recorded reasons are untenable. Accordingly, once the recorded reasons collapsed, the reassessment proceedings could not be sustained and were quashed. en-us Fri, 02 Jul 2021 00:00:00 +0530 Sat, 03 Jul 2021 08:57:05 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=409266 Reassessment under section 147 can survive only if the recorded reasons for reopening are legally and factually sustainable. Here, the reopening was based on an assumed taxable gain from property transactions, but the sale deed had already been cancelled by the State Government, so the factual basis for the belief of escapement of income failed. The attempt to justify the reassessment under Explanation 3 to section 147 was rejected because that provision does not cure a reopening where the original recorded reasons are untenable. Accordingly, once the recorded reasons collapsed, the reassessment proceedings could not be sustained and were quashed. Case-Laws Income Tax Fri, 02 Jul 2021 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=409266