https://www.taxtmi.com/caselaws?id=449315 The Bombay HC ruled in favor of the assessee regarding reopening of assessment under Section 147. The AO disallowed expenditure on advertisement, sales promotion, and product display posters claiming it didn't pertain to the assessee's business under Section 37. The HC held there was no reasonable basis to believe income had escaped assessment. The court emphasized that advertising and sales promotion expenses directly benefit the assessee's business by ensuring higher sales and profitability, establishing a clear nexus between expenditure and business operations. The AO's belief lacked reasonable foundation required for valid reassessment proceedings. en-us Fri, 02 Feb 2024 00:00:00 +0530 Wed, 28 Aug 2024 12:11:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=449315 The Bombay HC ruled in favor of the assessee regarding reopening of assessment under Section 147. The AO disallowed expenditure on advertisement, sales promotion, and product display posters claiming it didn't pertain to the assessee's business under Section 37. The HC held there was no reasonable basis to believe income had escaped assessment. The court emphasized that advertising and sales promotion expenses directly benefit the assessee's business by ensuring higher sales and profitability, establishing a clear nexus between expenditure and business operations. The AO's belief lacked reasonable foundation required for valid reassessment proceedings. Case-Laws Income Tax Fri, 02 Feb 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=449315