https://www.taxtmi.com/caselaws?id=770627 Gujarat HC quashed notice issued under section 148 for reassessment. The case involved discrepancy between material advance and closing stock of raw materials in profit and loss account. Court held that AO wrongly interpreted material advance as equivalent to closing stock of raw materials. The material advance was 75% of average product procure rate, properly accounted in RA bills. AO lacked jurisdiction to reopen assessment based on information already available and considered during regular assessment. The alleged understatement of closing stock could not result in escaped income as it would become opening stock for subsequent year. Decision favored assessee. en-us Tue, 22 Apr 2025 00:00:00 +0530 Wed, 14 May 2025 07:48:06 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=770627 Gujarat HC quashed notice issued under section 148 for reassessment. The case involved discrepancy between material advance and closing stock of raw materials in profit and loss account. Court held that AO wrongly interpreted material advance as equivalent to closing stock of raw materials. The material advance was 75% of average product procure rate, properly accounted in RA bills. AO lacked jurisdiction to reopen assessment based on information already available and considered during regular assessment. The alleged understatement of closing stock could not result in escaped income as it would become opening stock for subsequent year. Decision favored assessee. Case-Laws Income Tax Tue, 22 Apr 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=770627