https://www.taxtmi.com/caselaws?id=36161 Reassessment under sections 147 and 148 was held invalid where the assessee had disclosed the agreement and all primary facts, and the tax authority could not rely on an alleged failure to draw a legal inference. On the statutory construction of the Companies Act, the sole selling agency stood terminated by force of law, and no enforceable right to retain compensation arose; any such sum, if received, had to be held in trust and refunded. Since no income chargeable to tax could be said to have accrued, the condition that income escaped assessment by reason of nondisclosure of material facts was not satisfied. The impugned reassessment notices were quashed. en-us Thu, 13 Mar 1980 00:00:00 +0530 Fri, 19 Mar 2010 16:43:49 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=36161 Reassessment under sections 147 and 148 was held invalid where the assessee had disclosed the agreement and all primary facts, and the tax authority could not rely on an alleged failure to draw a legal inference. On the statutory construction of the Companies Act, the sole selling agency stood terminated by force of law, and no enforceable right to retain compensation arose; any such sum, if received, had to be held in trust and refunded. Since no income chargeable to tax could be said to have accrued, the condition that income escaped assessment by reason of nondisclosure of material facts was not satisfied. The impugned reassessment notices were quashed. Case-Laws Income Tax Thu, 13 Mar 1980 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=36161