https://www.taxtmi.com/caselaws?id=470766 Reassessment may be initiated on fresh tangible material indicating possible escaped income, where statutory notices communicate the substance of recorded reasons, objections are considered, and approval requirements are met. However, an outstanding letter-of-credit liability cannot be treated as unexplained expenditure where banks directly disbursed the underlying funds to vendors. Allegations of bogus purchases or diversion of bank funds do not, by themselves, make the expenditure's source unexplained. The article further notes that the special tax treatment linked to unexplained expenditure cannot apply when that statutory basis fails. A natural-justice challenge consequential to an unsuccessful reassessment challenge requires no separate substantive determination. en-us Thu, 27 Jul 2023 00:00:00 +0530 Fri, 07 Aug 2026 16:09:32 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=470766 Reassessment may be initiated on fresh tangible material indicating possible escaped income, where statutory notices communicate the substance of recorded reasons, objections are considered, and approval requirements are met. However, an outstanding letter-of-credit liability cannot be treated as unexplained expenditure where banks directly disbursed the underlying funds to vendors. Allegations of bogus purchases or diversion of bank funds do not, by themselves, make the expenditure's source unexplained. The article further notes that the special tax treatment linked to unexplained expenditure cannot apply when that statutory basis fails. A natural-justice challenge consequential to an unsuccessful reassessment challenge requires no separate substantive determination. Case-Laws Income Tax Thu, 27 Jul 2023 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=470766