Bombay HC Quashes Reassessment Notices as Income Already Taxed Substantively in Prior Year

Sai Shirdi Constructions Vs ITO (Bombay High Court) Bombay High Court, in a ruling concerning Sai Shirdi Constructions versus the Income Tax Officer (ITO), has quashed reassessment notices issued under Section 148 of the Income-Tax Act, 1961, for assessment years (AY) 2008-09 and 2009-10. The court found that the Income Tax Department lacked a valid ‘reason to believe’ that income had escaped assessment, as the disputed amount had already been subjected to tax in a subsequent assessment year. The case, adjudicated on December 16, 2015, involved two writ petitions challenging the Se...